- Joined
- Jan 18, 2010
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- 7,177
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WHILE house-hunting in the HDB resale market recently, I came across a number of permanent residents (PRs) who were selling their flats as they were returning to their home countries or emigrating to other countries.
A few property agents have told me they are seeing more PRs doing so. This brings me to question the true intent of some PRs when they buy HDB flats.
Clearly, they stand to make hefty capital gains from selling their flats. Some become "instant millionaires" when they return home, especially to developing countries, after working in Singapore for several years.
Although one can argue that Singaporeans also benefit from capital gains when they sell their flats, the benefit is marginal or non-existent if they choose to buy a similar type of flat, upgrade to a bigger flat, or buy private property here.
When the HDB first allowed PRs to buy public housing, the premise was to assist them in sinking their roots here and bring them one step closer to becoming citizens. Clearly, this is not the case for all PRs.
Some curbs on PRs purchasing HDB flats are in order.
The authorities could consider requiring PRs to sell back their flats only to the HDB based on the price they paid for the units. This will help to root out any opportunistic intentions on the part of some PRs.
PRs married to Singaporeans would, of course, be exempted from the curbs.
Uncontrolled purchases of HDB flats by PRs drive up the HDB resale price index and make public housing more expensive for Singaporeans.
Any curbs to be introduced should focus on the long-term commitment of PRs to Singapore, while ensuring the housing needs of Singaporeans are met.
Edwin Lim
A few property agents have told me they are seeing more PRs doing so. This brings me to question the true intent of some PRs when they buy HDB flats.
Clearly, they stand to make hefty capital gains from selling their flats. Some become "instant millionaires" when they return home, especially to developing countries, after working in Singapore for several years.
Although one can argue that Singaporeans also benefit from capital gains when they sell their flats, the benefit is marginal or non-existent if they choose to buy a similar type of flat, upgrade to a bigger flat, or buy private property here.
When the HDB first allowed PRs to buy public housing, the premise was to assist them in sinking their roots here and bring them one step closer to becoming citizens. Clearly, this is not the case for all PRs.
Some curbs on PRs purchasing HDB flats are in order.
The authorities could consider requiring PRs to sell back their flats only to the HDB based on the price they paid for the units. This will help to root out any opportunistic intentions on the part of some PRs.
PRs married to Singaporeans would, of course, be exempted from the curbs.
Uncontrolled purchases of HDB flats by PRs drive up the HDB resale price index and make public housing more expensive for Singaporeans.
Any curbs to be introduced should focus on the long-term commitment of PRs to Singapore, while ensuring the housing needs of Singaporeans are met.
Edwin Lim
