Goldman Sachs have caused ripples in the Singapore community by recommending that Singapore do away with restrictions on landed property ownership by foreigners. There was an almost instant rebuttal by the Minsitry of Law (err, why are land issues handled by the Ministry of Law anyway), and indignation in the forum pages of The Straits Times are starting to come in.
My take? Lift restrictions for foreigners to own cluster landed property. Cluster landed property are more akin to condominums than pure stand-alone landed property. They are space efficient (they have relatively small floor foot prints but usually built to 4 levels) and like condominiums, they share common facilities like a communal swimming pool, gym, children's play area (and related quarterly maintenance charges)
Indeed today we do have anomalies in the system where certain cluster house developments are considered to be landed property (where restrictions on purchase by foreigners apply) whereas others in mixed developments (i.e. those whch also have apartments in the same development e.g. Glentrees, Somerville Park) are considered not to be landed property. Physically though, the "landed" townhouses in these two types of development are indistinguishable.
Allowing foreigners to buy space efficient landed property such as cluster homes will not have a major impact on land scarce Singapore, but yet give a greater choice of homes for foreigners who are attracted to Singapore to live or invest in.
Disclosure - I do own a cluster landed property in Singapore and would stand to gain if restrictions on foreign purchase were lifted.
My take? Lift restrictions for foreigners to own cluster landed property. Cluster landed property are more akin to condominums than pure stand-alone landed property. They are space efficient (they have relatively small floor foot prints but usually built to 4 levels) and like condominiums, they share common facilities like a communal swimming pool, gym, children's play area (and related quarterly maintenance charges)
Indeed today we do have anomalies in the system where certain cluster house developments are considered to be landed property (where restrictions on purchase by foreigners apply) whereas others in mixed developments (i.e. those whch also have apartments in the same development e.g. Glentrees, Somerville Park) are considered not to be landed property. Physically though, the "landed" townhouses in these two types of development are indistinguishable.
Allowing foreigners to buy space efficient landed property such as cluster homes will not have a major impact on land scarce Singapore, but yet give a greater choice of homes for foreigners who are attracted to Singapore to live or invest in.
Disclosure - I do own a cluster landed property in Singapore and would stand to gain if restrictions on foreign purchase were lifted.
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