Proposal for Minimum Occupation Period for New Citizens who Buy Landed Residential Property
Ministry of LawSpeakers
Summary
This question concerns Mr Murali Pillai’s proposal to impose a five-year minimum occupation period on new citizens from the Global Investor Programme (GIP) to curb landed property price increases. Minister for Law K Shanmugam clarified that the Residential Property Act currently imposes no restrictions on Singapore Citizens, unlike foreigners and Permanent Residents. He noted that GIP-originated citizens made only 21 landed property purchases between 2004 and 2021, while total annual transactions averaged 2,400 over the last seven years. Minister for Law K Shanmugam stated that the government monitors the market alongside the Ministry of National Development and other relevant agencies. He concluded that the authorities will continue to review the situation and take necessary measures as required.
Transcript
41 Mr Murali Pillai asked the Minister for Law with regards to high-net-worth persons who become Singapore Citizens after obtaining Singapore permanent residency through the Global Investor Programme (GIP), whether the Ministry will consider imposing a minimum occupation period of five years on these new citizens for any purchase of landed residential property so as to reduce the risk of a self-reinforcing cycle of price increases in the private landed residential property market.
Mr K Shanmugam: The Residential Property Act (RPA) prohibits foreigners, including Permanent Residents (PRs), from purchasing landed residential property. Currently, Singapore Citizens are not subject to any restrictions on the purchase or ownership of landed properties under RPA.
There are strict criteria for a foreigner to become a Singapore Citizen. Only a small number have been granted Singapore Citizenship after obtaining Singapore Permanent Residency (PR) through the Global Investor Programme (GIP) since its introduction in 2004. This group of citizens, who first obtained PR status through GIP, accounted for a total of 21 landed property purchases over 18 years from 2004 to 2021. By comparison, over the last seven years, there has been an average of 2,400 landed property transactions annually.
I note the Member's concerns regarding the landed residential property market. This is something we review regularly. We will continue to work with the MND and other relevant agencies to monitor the situation and take the necessary measures.