On 2 July 2024, Singapore's Minister for National Development, Lee Chee Chun, replied in writing to Yishun GRC MP Goh Soon Shera on the impact of foreign investment on shophouse prices and the measures taken by the government to stabilise the property market.
The following is translated by the Singapore Eye based on the English language of the National Assembly:
The impact of foreign investment on shophouse prices and the government's measures to stabilize the property market
Mr Goh Soon Hei (Yishun GRC MP) asked the Minister for National Development in view of the high investment demand from wealthy foreigners for local shophouses:
(a) How does the Government assess the potential impact of rising shophouse prices on the overall property market and Singaporeans?
(b) In view of the increasing inflow of foreign funds into the purchase of limited local shophouses, will the restriction of foreign purchases, as is the case in the residential market, in order to ease demand and asset price inflation?
(c) Will it assist local commercial tenants in coping with the rising rents of shophouses?
Mr Lee Chee Chung (Minister for National Development): As of Q1 2024, shophouses accounted for 9% of the total office and retail space in the market, with minimal impact on the overall property market. In addition, the transaction volume and total transaction value of shophouses have dropped significantly in the past two years. Over 80% of shophouse purchasers in the past five years were local companies and individuals.
In addition to shophouses, businesses can also lease other types of commercial properties, including retail and office space in traditional commercial buildings such as shopping malls and office buildings. There will also be plenty of retail and office space in use in the coming years to meet demand.
Nevertheless, the government will continue to monitor the real estate market and adjust policies if necessary to promote the stability and sustainable development of the real estate market.
The following is the content of the question in English:
Impact of Foreign Investment on Shophouse Prices and Government Measures for Property Market Stability
54 Mr Derrick Goh asked the Minister for National Development given high investment demand by wealthy foreigners for local shophouses (a) what is the Government’s assessment of the potential impact of higher shophouse prices on the wider property market and Singaporeans in general; (b) whether restrictions for foreign purchases, as with the residential market, will be considered to moderate demand and asset price inflation given increasing foreign fund inflows buying limited supply of local shophouses; and (c) whether local business tenants will be assisted to cope with rising shophouse rents.
Mr Desmond Lee: Shophouse spaces make up 9% of the total stock of office and retail space in the market as of 1Q2024 and its impact on the wider property market is minimal. In addition, shophouse sale transaction volume and total sale transaction value have fallen significantly over the last two years. Over the past five years, more than 80% of shophouse purchases were by local companies and individuals.
Apart from shophouses, businesses can also rent spaces in other types of commercial properties, which include retail and office spaces in conventional commercial buildings, like malls and office buildings. There is also ample supply of retail and office space coming onstream over the next few years to cater to demand.
Nevertheless, the Government will continue to monitor the property market and adjust our policies, as necessary, to promote a stable and sustainable property market.
(Singapore Eye wishes you all a Happy Mid-Autumn Festival!) Source: Ago)
HQ丨Editor
HQ丨Editor
Singapore Parliament丨Source
1. The copyright of all works on this website that indicates the type of article as "original" belongs to Nanyang and Singapore Eye. Other media, websites or individuals must indicate when reprinting and using: "Article source: Singapore Eye".
2. All works indicated on this website as "reprinted" and "compiled" are reprinted or compiled from other media, for the purpose of delivering more valuable information, and it does not mean that this official account agrees with its views and is responsible for its authenticity.