View Full Version : PRs buying landed homes set to plunge
Approvals for PRs buying landed homes set to plunge By UMA SHANKARI
(SINGAPORE) The number of approvals given to permanent residents (PRs) who want to buy landed homes in Singapore is set to fall by more than half after the criteria was tightened further recently, Law Minister K Shanmugam said yesterday.
'After the further tightening, I suspect we are looking at very few people who would qualify. I think probably less than half of those who had previously qualified - under the previous already strict criteria - would qualify now. I'd be surprised if approvals are more than 50 per year,' Mr Shanmugam said.
'Our belief is that landed property is primarily for Singaporeans and the exceptions have to be very rare.'
Mr Shanmugam was speaking to reporters after visiting a black-and-white bungalow at Goodwood Hill.
The Ministry of Law said that the criteria was tightened 'recently' but declined to provide a more exact date.
A ministry spokeswoman said that over the last three years, the ministry had received an average of about 230 applications a year from PRs for the purchase of landed residential property.
On average, about 60 per cent of the applications were approved. With the revised criteria, the approval rate could drop by more than 50 per cent, she said.
This means that the number of approvals could fall from around 138 a year to Mr Shanmugam's prediction of not more than 50.
Foreigners who are PRs currently own about 3.5 per cent of the total stock of 70,000 landed homes in Singapore. This includes properties in Sentosa Cove, where the government has made a decision to liberally allow purchases by foreigners.
Foreigners cannot buy such properties without the prior approval of the law minister. And only foreigners who are PRs can apply to purchase landed properties.
Mr Shanmugam told The Business Times in an interview in July that his ministry regularly reviews the rules to ensure that they are current and relevant. And yesterday, he said that the 'strict' criteria were tightened further this year.
'We have reviewed it further this year . . . as we are even stricter, it (the number of approvals) may fall by half,' Mr Shanmugam said.
The Law Ministry spokeswoman added that PRs who want to buy landed properties must demonstrate that they are making a 'very significant economic contribution' to Singapore.
'Some discretion is also exercised by considering the commitment shown to Singapore by the applicants, including how rooted they and their children are in Singapore,' she said.
'Since the criteria have been further revised this year, the approval rate is expected to fall further from the already small number of approvals in the past years.'
will this reduce demand for landed and cause landed prices to correct? :D
i think this qualifies as a game-changer... kaboomzzz!
May be applies to the high end ones.
will this reduce demand for landed and cause landed prices to correct? :D
May be applies to the high end ones.
may the effect trickle downwards then so I can buy one too :P
Numbers are small. Effect will be minimal. Buy semi Ds houses in sennett estate given Bidadari future development and near mrt stn.
may the effect trickle downwards then so I can buy one too :P
Minimal impact on landed property but cluster houses will now become hot.
5% reduction of demand for landed is not big but if most of this demand goes into cluster housing then the demand for that may go up steeply. It is a very small segment.
Minimal impact on landed property but cluster houses will now become hot.
5% reduction of demand for landed is not big but if most of this demand goes into cluster housing then the demand for that may go up steeply. It is a very small segment.
PRs going for cluster housing now or cheong high end condos???????:scared-3:
That is why Este Villa is selling so well now?
Minimal impact on landed property but cluster houses will now become hot.
5% reduction of demand for landed is not big but if most of this demand goes into cluster housing then the demand for that may go up steeply. It is a very small segment.
PRs going for cluster housing now or cheong high end condos???????:scared-3:
The main reason why people are buying landed is because FH land are limited. Buying a strata title cluster housing just doesnt give you the same feeling of owning the land and can make you own dream home.
no different from staying at the ground floor unit of condo.
foreigner can buy cluster houses meh?:beats-me-man:
Why are foreigners allowed to own 5% of landed anyway.... Dangerous to give exceptions. Where do you stop?
Another case of elevator analysis by reporters. Just because more stringent criteria applied doesn't mean that PRs buying landed homes will plunge.
In fact, it could turn out to have the opposite effect of what is intended. Due to the fact that the approval becomes a much more valuable piece of paper, this will spur more and more PRs to try their luck and just apply for approval. There is nothing to lose. If they get it, they can shop around, no obligation to actually buy. Just let the approval lapse if they can't find one.
With more PRs trying their luck, the pool will actually grow. So what if the percantage of approvals drop from 60% to 50%. As long as the pool of applicants grows, the actual number of approvals may actually increase.
Another case of elevator analysis by reporters. Just because more stringent criteria applied doesn't mean that PRs buying landed homes will plunge.
In fact, it could turn out to have the opposite effect that the gahment intended. Due to the fact that the approval becomes a much more valuable piece of paper, this will spur more and more PRs to try their luck and just apply for approval. There is nothing to lose. If they get it, they can shop around, no obligation to actually buy. Just let the approval lapse if they can't find one.
With more PRs trying their luck, the pool will actually grow. So what if the percantage of approvals drop from 60% to 50%. As long as the pool of applicants grows, the actual number of approvals may actually increase.
The govern is using % to indicate the quantum of drop from last year, they are not using the % as a quota for approval.
The govern is using % to indicate the quantum of drop from last year, they are not using the % as a quota for approval.
Which would make the approval piece of paper even MORE valuable....
Which would make the approval piece of paper even MORE valuable....
You are probably thinking that the approval process is like tikam tikam If you are lucky you are get it.
But our Minister said ....:tsk-tsk:
But then he only actually said he'd 'be surprised if it didn't drop by 50%' and well Christmas is coming and it might surprises galore....
Another case of elevator analysis by reporters. Just because more stringent criteria applied doesn't mean that PRs buying landed homes will plunge.
In fact, it could turn out to have the opposite effect of what is intended. Due to the fact that the approval becomes a much more valuable piece of paper, this will spur more and more PRs to try their luck and just apply for approval. There is nothing to lose. If they get it, they can shop around, no obligation to actually buy. Just let the approval lapse if they can't find one.
With more PRs trying their luck, the pool will actually grow. So what if the percantage of approvals drop from 60% to 50%. As long as the pool of applicants grows, the actual number of approvals may actually increase.
You are probably thinking that the approval process is like tikam tikam If you are lucky you are get it.
Landed is a like scarce commodity with virtually no new supply and only availlable to a specific group of people. Previously, a select few of others could join in in purchasing this commodity. If the controlling authority now annnouces that they are going to cut the quota of these others by 50%, what do you think will happen?
But our Minister said ....:tsk-tsk:
But then he only actually said he'd 'be surprised if it didn't drop by 50%' and well Christmas is coming and it might surprises galore....
Also think carefully about what prompted this article? Why all the hoo-hah over 138 approvals a year? There must have been a sudden rush of applicants driven by realisation of foreigners of the intrinsic value of landed.
Landed is a like scarce commodity with vitrtually no new supply and only availlable to a specific group of people. Previously, a select few of others could join in in purchasing this commodity. If the controlling authority now annnouces that they are going to cut the quota of these others by 50%, what do you think will happen?
There is no quota for the government to approve the sale of landed property PR., they only make it more difficult for PR to qualify for landed purchase.
this is not like COE where gov have quota of COE to issue every month regardless of the bid price. Hence regardless if there is 1, 2 or 1000 applicants, if they are not qualified, they will not be approved. They dont have target or quota to meet
There is no quota for the government to approve the sale of landed property PR., they only make it more difficult for PR to qualify for landed purchase.
this is not like COE where gov have quota of COE to issue every month regardless of the bid price. Hence regardless if there is 1, 2 or 1000 applicants, if they are not qualified, they will not be approved. They dont have target or quota to meet
Of course they won't mention there's a quota when the underlying message is STILL to welcome foreigners into our country but do you actually think the authorities operate on an arbritary basis and use 'gut' feel to guide them when to stop giving approvals. There is always a guideline somewhere.
Politically motivated of course.
For time being, stats will show less SG land is sold to PRs.
Once things quieten down, then can relax the criteria again...that's the reason for no quota.
If issue raised again - then just have to say "more qualified PRs met to our very stringent criteria"
Cannot win la...
There is no quota for the government to approve the sale of landed property PR., they only make it more difficult for PR to qualify for landed purchase.
this is not like COE where gov have quota of COE to issue every month regardless of the bid price. Hence regardless if there is 1, 2 or 1000 applicants, if they are not qualified, they will not be approved. They dont have target or quota to meet
GCB may be affected but minimal. As for entry level landed $2-4mil, this are the aspirations of many and most are owner occupied for these entry level, prices may soften if there is economic downturn, but will hold esp for FH or 999LH landed..:2cents:
Minister himself stays in a landed.., if dropped, maybe he will scout for another GCB..:D
http://forums.condosingapore.com/showpost.php?p=179701&postcount=38
Easy to buy for some PRs/foreigners...just marry a local.
Then buy via the spouse's name.
Don't some do that for land in Vietnam?
so all in all, price for landed will drop?
Of course they won't mention there's a quota when the underlying message is STILL to welcome foreigners into our country but do you actually think the authorities operate on an arbritary basis and use 'gut' feel to guide them when to stop giving approvals. There is always a guideline somewhere.
The government policy on FT doesnt change, they only make it harder for them to buy landed property thats all. And by doing so that doesnt mean they are discouraging FT to come singapore, as they can still buy non landed private property or rent landed property, or even buy stata title landed housing.
Like I said early, the government will not worry or care if there are no PR applicants for landed property purchase, nor are they worried if they reject all of them due to their substandard qualification.
The government policy on FT doesnt change, they only make it harder for them to buy landed property thats all. And by doing so that doesnt mean they are discouraging FT to come singapore, as they can still buy non landed private property or rent landed property, or even buy stata title landed housing.
Like I said early, the government will not worry or care if there are no PR applicants for landed property purchase, nor are they worried if they reject all of them due to their substandard qualification.
If they don''t worry or care why has the Law Minister himself come out in public media to talk about this. This is also NOT the first time. If you recall, he came out with an earlier statement that quote 'landed was the preserve' of citizens 'unqoute'
Two public statements for a measly 138 purchase of landed properties ?????
Oh yeah, it definitely shows they really bo-chap about the politcial ramifications of foreigners buying landed in Singapore.
You also forget that the foreigners who can afford landed in SG are the super wealthy and the kind of talent that they want to attract to SG. They have to be very careful about how all this affects the immigration policy.
Must pretend to show ...
People tend to fake sincerity when it's not their issue,
only cry father when it's their problem.
If they don''t worry or care why has the Law Minister himself come out in public media to talk about this. This is also NOT the first time. If you recall, he came out with an earlier statement that quote 'landed was the preserve' of citizens 'unqoute'
Two public statements for a measly 138 purchase of landed properties ?????
Oh yeah, it definitiely shows they really bo-chap about the politcial ramifications of foreigners buying landed in Singapore.
If they don''t worry or care why has the Law Minister himself come out in public media to talk about this. This is also NOT the first time. If you recall, he came out with an earlier statement that quote 'landed was the preserve' of citizens 'unqoute'
Two public statements for a measly 138 purchase of landed properties ?????
Oh yeah, it definitiely shows they really bo-chap about the politcial ramifications of foreigners buying landed in Singapore.
You also forget that the foreigners who can afford landed in SG are the super wealthy and the kind of talent that they want to attract to SG. They have to be very careful about how all this affects the immigration policy.
There is obviously a rise in PRs bringing in hot money to scope up landed property in Singapore and thats why the government is now making it harder for them to buy landed.
If they don''t worry or care why has the Law Minister himself come out in public media to talk about this. This is also NOT the first time. If you recall, he came out with an earlier statement that quote 'landed was the preserve' of citizens 'unqoute'
Two public statements for a measly 138 purchase of landed properties ?????
Oh yeah, it definitiely shows they really bo-chap about the politcial ramifications of foreigners buying landed in Singapore. Agree, as Law Minister and Foreign Minister, he shld have much more important matters at hand than talk about this...Wonder if he can successfully made his rounds to the region as well as the superpowers of USA and China, etc to meet his counterparts, shake some hands and round some shoulders yet and keep our international relation warm, etc..
As for legal ministry, to the layman nothing much, since ISA..can't be abolished.., so nothing to talk about la...:2cents:
so all in all, price for landed will drop?
Unlikely. Even if they rescind ALL the 138 approvals for PRs this yr and don't approve any for next year, it will hardly make a dent in the landed sector.
As mentioned, sending this kind of message as in the press report may have the opposite effect. Its like making an exclusive club even harder to get in. More people will then crave for membership.
The sheer scarcity of such approvals will also result in a guaranteed transaction if by some stroke of luck the PRs do get approval to buy.
Do you think PRs will NOT buy landed even if asking prices have gone up during their wait time? They may shop around but as the expiry date of the approval beckons, they will defnitely commit on buying something rather than waste the precious approval. This may even push up prices as they will just accept the asking prices to meet the deadline.
There is no second chance or waiting for the market to come down because its unlikely you will ever get approval again if you don't strike this time.
Unlikely. Even if they rescind ALL the 138 approvals for PRs this yr and don't approve any for next year, it will hardly make a dent in the landed sector.
As mentioned, sending this kind of message as in the press report may have the opposite effect. Its like making an exclusive club even harder to get in. More people will then crave for membership.
The sheer scarcity of such approvals will also result in a guaranteed transaction if by some stroke of luck the PRs do get approval to buy.
Do you think PRs will NOT buy landed even if asking prices have gone up during their wait time? They may shop around but as the expiry date of the approval beckons, they will defnitely commit on buying something rather than waste the precious approval. This may even push up prices as they will just accept the asking prices to meet the deadline.
There is no second chance or waiting for the market to come down because its unlikely you will ever get approval again if you don't strike this time.
BINGO!!!!!!!!!:D Rental for landed may rise too if PRs die die must stay in rental and they cannot buy one!
it really depend on the profile of the PRs buyer. For asian (PRC or NRIs) it is very unlikely they will want to pay 20-30K per month to rent a GCB. most likely they will just end up at sentosa or perhaps a good size penthouse of something.
What they want perhaps is not just a place to stay but somewhere to park their money. And there is no other better place today than to park in in a freehold landed property in Singapore.
devilplate
13-10-11, 20:53
The main reason why people are buying landed is because FH land are limited. Buying a strata title cluster housing just doesnt give you the same feeling of owning the land and can make you own dream home.
no different from staying at the ground floor unit of condo.
Lots of diff
Ground flr condo u got many units sitting on top of u and u do not haf separate floors
devilplate
13-10-11, 20:54
Minimal impact on landed property but cluster houses will now become hot.
5% reduction of demand for landed is not big but if most of this demand goes into cluster housing then the demand for that may go up steeply. It is a very small segment.
Recently launched cluster housing all not foreigner frenly too
devilplate
13-10-11, 20:58
GCB may be affected but minimal. As for entry level landed $2-4mil, this are the aspirations of many and most are owner occupied for these entry level, prices may soften if there is economic downturn, but will hold esp for FH or 999LH landed..:2cents:
Minister himself stays in a landed.., if dropped, maybe he will scout for another GCB..:D
http://forums.condosingapore.com/showpost.php?p=179701&postcount=38
If not wrong, pr can nvr buy gcb at all....
They can only try to appeal to buy up to a certain land size.....i forgot how big liao
devilplate
13-10-11, 21:00
Tot some said pr pay high high for landed ppty causing a spike in px?
Take away pr, prices for landed will not see a spike....
Nid a rexession for landed px to drop
Some also say PR caused HDB resale price jump, in the end the truth is, mostly singaporeans push it up ourselves :cool:
This one 100% political motivated. Must show " see we look after our own ppl".
Didn't u all realize these 3 days coordinated " press releases " of various ministries to show "we listen to your voice in the GE" ?
If not wrong, pr can nvr buy gcb at all....
They can only try to appeal to buy up to a certain land size.....i forgot how big liao
Yes, u are correct...GCB cannot buy becos to be classify as GCB, detached must be min. 15k sqft:
From SLA website, extract under
"Procedures for Foreigners to Purchase Restricted Residential Property"
4. Is there a limit on the land area of the property?
Yes. The land area of the property should not exceed 1,393.5 sq metres (15,000 sq ft).
http://www.ifaq.gov.sg/sla/apps/fcd_faqmain.aspx?qst=2fN7e274RAp%2bbUzLdEL%2fmCxs7iwcgv8gv2atNDOvsLBNBP0aIcAAVh32WoRmhdCQ8TQEqjSuL9tIr4Di3QZletto%2fJ0kfvvR8t%2b2QxVoJ10GxzMiymvpWEQeDQCugXTQaOh0A8Vi%2fojwG5uXnd8mauTt%2fzWd5UYYW157hnQSWrmsMUpbWxkrJHIViF5XMqcwpDyPUjOXWmVn%2fAJ5YcRC7Rq%2bsNIvcEjsYjVjgBdErTtoEvkHs3%2b0aUe1SCLH5dtqAcZDSttflTbZzpwyyXe3UWlbz%2f%2b%2b6ZTh7bBPW9CrRTYR7pwyXn4zeLm4F9oW9a2UFGUqFr6Kq6k%3d
Yes, u are correct...GCB cannot buy becos to be classify as GCB, detached must be min. 15k sqft:
From SLA website, extract under
"Procedures for Foreigners to Purchase Restricted Residential Property"
4. Is there a limit on the land area of the property?
Yes. The land area of the property should not exceed 1,393.5 sq metres (15,000 sq ft).
http://www.ifaq.gov.sg/sla/apps/fcd_faqmain.aspx?qst=2fN7e274RAp%2bbUzLdEL%2fmCxs7iwcgv8gv2atNDOvsLBNBP0aIcAAVh32WoRmhdCQ8TQEqjSuL9tIr4Di3QZletto%2fJ0kfvvR8t%2b2QxVoJ10GxzMiymvpWEQeDQCugXTQaOh0A8Vi%2fojwG5uXnd8mauTt%2fzWd5UYYW157hnQSWrmsMUpbWxkrJHIViF5XMqcwpDyPUjOXWmVn%2fAJ5YcRC7Rq%2bsNIvcEjsYjVjgBdErTtoEvkHs3%2b0aUe1SCLH5dtqAcZDSttflTbZzpwyyXe3UWlbz%2f%2b%2b6ZTh7bBPW9CrRTYR7pwyXn4zeLm4F9oW9a2UFGUqFr6Kq6k%3d
That's why Jet Li become citizen.....
devilplate
14-10-11, 09:57
That's why Jet Li become citizen.....
mabe just part of the reason....
dun tink he is so shallow:p
Tot some said pr pay high high for landed ppty causing a spike in px?
Take away pr, prices for landed will not see a spike....
Nid a rexession for landed px to drop
Are you still waiting for that to happen? IMO, original Cond, small (1600- 2000 sqft) FH IT with a land PSF of 1000-1200 is reasonable in today's market.
Are you still waiting for that to happen? IMO, original Cond, small (1600- 2000 sqft) FH IT with a land PSF of 1000-1200 is reasonable in today's market.
Wait some more and we could all begin to say orig cond small FH IT with a built-in PSF of 1k-1.2k is reasonable...:scared-4: Dd vs Ss issue for landed lah...
buttercarp
14-10-11, 14:21
Wait some more and we could all begin to say orig cond small FH IT with a built-in PSF of 1k-1.2k is reasonable...:scared-4: Dd vs Ss issue for landed lah...
So what are you waiting for?;)
So what are you waiting for?;)
Wait for the market to crash lah. Then can buy cheap cheap!:D
nobrainer32007
15-10-11, 10:08
yah yah yah. I will scoop up two more then :cool:
QUOTE=Fisherman]Wait for the market to crash lah. Then can buy cheap cheap!:D[/QUOTE]
buttercarp
15-10-11, 14:21
Wait for the market to crash lah. Then can buy cheap cheap!:D
Nothing like that will happen in the near future, unless a major crisis hits the world.
http://www.businesstimes.com.sg/sub/news/story/0,4574,460296-1318535940,00.html?
Published October 13, 2011
Approvals for PRs buying landed homes set to plunge
By UMA SHANKARI
(SINGAPORE) The number of approvals given to permanent residents (PRs) who want to buy landed homes in Singapore is set to fall by more than half after the criteria was tightened further recently, Law Minister K Shanmugam said yesterday.
'After the further tightening, I suspect we are looking at very few people who would qualify. I think probably less than half of those who had previously qualified - under the previous already strict criteria - would qualify now. I'd be surprised if approvals are more than 50 per year,' Mr Shanmugam said.
'Our belief is that landed property is primarily for Singaporeans and the exceptions have to be very rare.'
Mr Shanmugam was speaking to reporters after visiting a black-and-white bungalow at Goodwood Hill.
The Ministry of Law said that the criteria was tightened 'recently' but declined to provide a more exact date.
A ministry spokeswoman said that over the last three years, the ministry had received an average of about 230 applications a year from PRs for the purchase of landed residential property.
On average, about 60 per cent of the applications were approved. With the revised criteria, the approval rate could drop by more than 50 per cent, she said.
This means that the number of approvals could fall from around 138 a year to Mr Shanmugam's prediction of not more than 50.
Foreigners who are PRs currently own about 3.5 per cent of the total stock of 70,000 landed homes in Singapore. This includes properties in Sentosa Cove, where the government has made a decision to liberally allow purchases by foreigners.
Foreigners cannot buy such properties without the prior approval of the law minister. And only foreigners who are PRs can apply to purchase landed properties.
Mr Shanmugam told The Business Times in an interview in July that his ministry regularly reviews the rules to ensure that they are current and relevant. And yesterday, he said that the 'strict' criteria were tightened further this year.
'We have reviewed it further this year . . . as we are even stricter, it (the number of approvals) may fall by half,' Mr Shanmugam said.
The Law Ministry spokeswoman added that PRs who want to buy landed properties must demonstrate that they are making a 'very significant economic contribution' to Singapore.
'Some discretion is also exercised by considering the commitment shown to Singapore by the applicants, including how rooted they and their children are in Singapore,' she said.
'Since the criteria have been further revised this year, the approval rate is expected to fall further from the already small number of approvals in the past years.'
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