CNA : MPs fear Singaporeans priced out by foreigners, private property owners

MPs fear Singaporeans priced out by foreigners, private property owners
By Leong Wee Keat, TODAY | Posted: 03 March
2010 0852 hrs

SINGAPORE: They were free to discuss any point raised in the Budget 2010
speech - and on Tuesday, several parliamentarians chose to reiterate the
concerns Singaporeans have over the affordability of housing board flats.

While Finance Minister Tharman Shanmugaratnam in his February 22 speech had
touched on a new tax regime to buffer flat owners, whose flat values are
rising, from a growing property tax bill, MPs broached a more direct fear:
Would residents be priced out of public housing, whether by foreigners or
private property owners?

By admitting too many immigrants too quickly into the country, Mr Inderjit
Singh (Ang Mo Kio GRC) said Singaporeans must now compete for resources,
which drives up the cost of living: "The clearest manifestation of this is
the cost of HDB flats."

Dr Ahmad Magad (Pasir Ris-Punggol GRC) said going by anecdotal evidence,
there were private property owners who owned resale HDB flats, but instead
of staying in them, as the rules require, were renting them out. "While the
numbers may now be quite small, I fear they will swell if no new measures
are introduced."

He is asking the Government to review its policy of allowing the sale of HDB
flats after a year if they are purchased with a bank loan and the rental of
HDB flats after a three-year occupation period.

"Harsh action should be taken against those who rent out their flats
illegally," he added.

MP Sin Boon Ann (Tampines GRC) called for a review of the S$8,000 household
income ceiling for buyers of new flats.

"Not everyone whose combined income exceeds the household limit can afford
private housing, (nor will they) necessarily have the ability to stump out
cash for the cash portion if they bought an HDB flat from the secondary
market," he said.

And with the perception that property prices are rising, many feel owning "a
decent home" is even further out of reach, he said.

Meanwhile, MP Liang Eng Hwa (Holland-Bukit Timah GRC) hoped the Government
would pre-empt another emergence of en bloc fever, which he said could
distort the property market and cause short-term volatility.

"Besides, en bloc sales, if too widespread, can be harmful for the
environment and waste much of our precious resources," he added.