http://www.straitstimes.com/archive/...perty-20140311

BUDGET DEBATE

New online guide on buying foreign property

Published on Mar 11, 2014


SINGAPOREANS looking to buy property overseas can get advice later this month from an online guide drawn up by the Government.

The Council for Estate Agencies will launch the guide to give some general tips to people thinking of doing so, National Development Minister (MND) Khaw Boon Wan said yesterday.

"Do read it, exercise due diligence, caution and good judgment before you invest," he said.

He noted that as Singapore reins in its property market, some Singaporeans have turned to investing in foreign properties.

It is a trend that worries Mr Seah Kian Peng (Marine Parade GRC) and Mr Liang Eng Hwa (Holland-Bukit Timah GRC).

Mr Seah hoped MND could provide more public education on the topic, while Mr Liang asked if measures could be taken to rein in excessive speculation by Singaporeans in overseas property.

Replying, Mr Khaw said: "The Government does not interfere with such investment decisions." But he added that he shared their concerns.

Investing in foreign property comes with added risks and complexities, as the legal and regulatory frameworks in other countries are different, he noted.

"And they may change suddenly when domestic politics push for a change in policies," Mr Khaw added.

The council will also step up efforts to regulate estate agents who are marketing overseas developments to buyers in Singapore.

Mr Khaw urged people to report any marketing by unlicensed foreign estate agents to the council so it can investigate and take appropriate action.

Estate agents themselves will also get guidance, to ensure that they "adopt professional practices when they market foreign properties," said the council's director of licensing and investigation, Ms Purnima Shantilal.

The council will introduce practice guidelines on marketing foreign properties.

These will give details on estate agents' responsibilities, and what they must do in preparation for marketing such projects.

JANICE HENG