Changes to Residential Property Act passed

Changes to the Residential Property Act were passed in Parliament on Monday.

It restricts foreign ownership of landed residential properties, including strata landed housing and land meant for residential development.

To prevent speculation, approved purchasers are allowed to buy only one property, which cannot be sold within the initial period of three years.

Approved purchasers are also required to stay in the property instead of renting it out.

Owners who breach these conditions will be penalised.

Law and Home Affairs Minister, K Shanmugam, said: “These penalties will be revised to ensure that they continue to be an effective deterrent.

“Foreign owners who illegally dispose of their property during the non-disposal period are currently liable, upon conviction, to a maximum fine of S$5,000. This is far below the amount of profit they might have gained from speculating in the property. We will raise the fine to a maximum of S$200,000.”

Source : Channel NewsAsia – 22 Nov 2010