Only 109 deals last year, a drop of 53.6%
By Esther Teo, The Straits Times, 29 Feb 2012
SALES of landed homes to permanent residents (PRs) plunged last year as tough new rules deterred them from entering that segment of the property market.
PRs bought 109 landed homes last year - down 53.6 per cent from the 235 transactions inked in 2010, DTZ Research said.
By Esther Teo, The Straits Times, 29 Feb 2012
SALES of landed homes to permanent residents (PRs) plunged last year as tough new rules deterred them from entering that segment of the property market.
PRs bought 109 landed homes last year - down 53.6 per cent from the 235 transactions inked in 2010, DTZ Research said.
That took their share of the landed housing market transactions to 3.4 per cent, from 5.4 per cent the previous year. In 2006, their transactions formed 6.8 per cent of the private landed market.
It has already been hard for PRs to buy landed property. There are strict criteria under the Residential Property Act that do not apply when they buy condominiums.
They must apply to the Singapore Land Authority's Land Dealings (Approval) Unit, which considers factors such as the person's professional qualifications, work experience and investment in Singapore.
Foreign citizens who are not PRs can buy landed property only at Sentosa Cove. They can also buy townhouses within condo developments.
The Government further tightened rules for PRs last year. Law Minister K. Shanmugam said then that he expected the number of approved applications to plunge by more than half.
He did not elaborate on the specific changes to the criteria, but said the Government believes landed homes should be mainly for Singaporeans, and that exceptions should be rare.
Experts say the PR share of the landed home market is being hit by two forces - tighter immigration policy and tougher criteria for obtaining approval.
DTZ Asia Pacific research head Chua Chor Hoon noted that while the tougher criteria had whittled down the number of PR buyers, the number of PRs here had also declined by about 9,000 - or 1.7 per cent year-on-year - as at last June.
This came on the back of more stringent eligibility requirements for PR approvals and lengthened residency requirements, she said.
Property agents told The Straits Times that getting approval has become noticeably tougher. They said approval is usually given to businessmen and professionals such as lawyers, bankers and doctors.
The Government further tightened rules for PRs last year. Law Minister K. Shanmugam said then that he expected the number of approved applications to plunge by more than half.
He did not elaborate on the specific changes to the criteria, but said the Government believes landed homes should be mainly for Singaporeans, and that exceptions should be rare.
Experts say the PR share of the landed home market is being hit by two forces - tighter immigration policy and tougher criteria for obtaining approval.
DTZ Asia Pacific research head Chua Chor Hoon noted that while the tougher criteria had whittled down the number of PR buyers, the number of PRs here had also declined by about 9,000 - or 1.7 per cent year-on-year - as at last June.
This came on the back of more stringent eligibility requirements for PR approvals and lengthened residency requirements, she said.
Property agents told The Straits Times that getting approval has become noticeably tougher. They said approval is usually given to businessmen and professionals such as lawyers, bankers and doctors.
Mr William Wong, managing director of RealStar Premier Group, said there has also been a drastic drop of more than 50 per cent of PR viewings of landed homes, possibly because they are aware of the tighter regulations.
'While PRs used to get approval for landed property of 13,000 sq ft to 15,000 sq ft in the past, they are being advised to buy smaller homes of about 10,000 sq ft now,' he said.
In general, PRs face restrictions buying landed property larger than 15,000 sq ft, but exceptions have been made.
Newsman Realty managing director K.H. Tan said that while some PRs used to be able to buy good class bungalows - the highest-end homes with a typical minimum plot size of more than 1,400 sq m - they are no longer getting approval for these. 'But a lot of the PRs in the past have also become citizens, and they are able to buy landed homes that way,' he noted.
DTZ Research noted that the proportion of private home purchases by non-PR foreigners surged to a record 17 per cent last year, up from 12 per cent in 2010. They snapped up 5,246 homes, 20.4 per cent more than the 4,357 units in 2010.
Together with PR buyers, they comprised 31 per cent of the property market. Singaporean buyers had a 67 per cent market share, with companies making up the rest.
Together with PR buyers, they comprised 31 per cent of the property market. Singaporean buyers had a 67 per cent market share, with companies making up the rest.
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