Young Singaporeans like businessman Tan Sin Yat, 32, accept an influx of foreign home buyers as part and parcel of life in an open, globalised economy

Young Singaporeans like businessman Tan Sin Yat, 32, accept an influx of foreign home buyers as part and parcel of life in an open, globalised economy.

But they also know it will have an impact on their chances to move up the property ladder.

‘With more foreigners buying private property, it also means that Singaporeans, especially young professionals, will find it more difficult to get that dream condo in a good location as prices are going up faster than incomes,’ he says.

The share of private home purchases by foreigners rose to 27 per cent in the first quarter of this year.

But for luxury developments in the Marina Bay and Orchard areas, their share has now soared to around 60 per cent.

Property analysts say the surge in demand and price increases at the top end filters down to mass market condominiums, where it has an impact on middle-income Singaporeans looking to buy their first home or upgrade.

This is of concern to Mr Charles Chong, who chairs the Government Parliamentary Committee on National Development.

He says if demand cannot be met by supply in the short-term, some tweaking of existing property regulations may be needed.

While first-time home buyers may wish for more restrictions on foreign buying, an investment bank has recently called for a liberalisation of rules on landed property for foreigners, saying this would help draw more talent here.

What, then, is the right balance to strike for a global-city in the making like Singapore?

Insight reports.

Source: The Straits Times, 14 July 2007