Figures from the Urban Redevelopment Authority show that private home prices rose 0.6 per cent in the first quarter, while prices of resale HDB flats increased by 1.3 per cent (“HDB resale deals at 16-year low”; April 27).
This is despite the Government introducing measures for the seventh time in January to curb rising property prices.
It is unhealthy for the Government to keep releasing state land for property development because there is no shortage of public and private properties.
Just drive through Sentosa Cove, Keppel Road, Holland Road, River Valley and East Coast Road, for instance, and you can see that many condominiums are partially occupied.
I have driven past several condos every evening for almost a year and noticed that they are only 30 per cent to 40 per cent occupied.
The owners could be foreigners who do not live in Singapore, Singaporeans and permanent residents (PRs) who leave their apartments vacant for various reasons, or even developers which are deliberately keeping the units to support the rise in property prices.
The Government must adopt tough measures to curb the purchase of private properties by foreigners and PRs by imposing a capital gains tax of, say, 30 per cent to 40 per cent. This would be far more effective than the additional buyer’s stamp duty.
Also, a higher property tax should be imposed on all units not sold by developers within 12 months after the property obtains its temporary occupation permit.
Finally, foreigners and PRs should be allowed to buy only one private property in land-scarce Singapore. If they keep buying up luxury condo units and landed properties, it will exacerbate the rich-poor divide and price Singaporeans out of the market, which may lead to an outflow of Singaporeans.
It is sad that Singapore is facing a declining population and also has a glut of vacant private properties.
David Goh