Parliamentary Question: Residential property loan for foreign citizens

Issues Raised in Parliament

ANSWER TO PARLIAMENTARY QUESTION ON:
RESIDENTIAL PROPERTY LOAN FOR FOREIGN CITIZENS

For Parliamentary Sitting on 25 Apr 2000


Answer:

1. The restriction on foreigners obtaining Singapore dollar loans to purchase residential properties was part of the package of measures the Government introduced in May 1996 to curb speculation in our property market. The overall package was effective in cooling the property bubble.

2. Most of the anti-speculation measures have since been lifted. However, the restriction on Singapore dollar loans to foreigners to buy residential property remains. The Government has left this in place as a signal that it does not encourage speculation in the property market, especially by non-Singaporeans using borrowed funds. The restriction does not in practice cause a problem, because employment pass holders who take up permanent residence become eligible for Singapore dollar property loans. Those who do not take up PR probably do not plan to stay on for the long term in Singapore, and are unlikely to want to buy property for owner-occupation.

Last Modified on 26/11/2016