Chee Soon Juan: Foreigners buying up properties in Singapore drives up property prices and rents

SINGAPORE: Dr Chee Soon Juan, Secretary-General of the Singapore Democratic Party (SDP) reiterated his critique of the ruling People’s Action Party’s (PAP) policies as unsustainable, particularly emphasizing the significant impact of the influx of foreigners purchasing properties in Singapore.

In a recent video message posted on Monday (3 June), on his official Facebook page, Dr Chee cautioned against the repercussions of foreign property acquisitions on the local market.

He warned that this trend could exacerbate the cost of living challenges faced by ordinary Singaporeans, widen wealth inequality, and erode national identity.

Dr Chee also raised questions regarding the ownership of the 470 HDB resale flats sold for at least S$1 million in 2023, particularly concerning the proportion acquired by permanent residents.

He underscored the impact of affluent PRs purchasing expensive condos, commercial properties, and entire real estate developments, which contributes to the ongoing surge in housing prices for locals.

“There’s a survey that showed that 80 per cent of our younger Singaporeans’ life goal is to own a private property. ”

“At the rate that the PAP is going we’d be lucky if a fraction of that can achieve this dream.”

Citing former PAP MP Inderjit Singh’s warning about Singaporeans being priced out of the private property market due to the influx of foreign funds, Dr Chee elaborated on the adverse effects of super-wealthy foreigners purchasing commercial properties.

Dr Chee: Influx of foreign buyers drives rental pressure

He warned that this influx exerts pressure on rental prices, prompting businesses to pass on these increased costs to consumers, thereby exacerbating the cost of living.

This issue is compounded by other hikes, including the GST increase to 9% and rising utility rates.

Dr Chee provided examples of high-profile billionaire property acquisitions in Singapore, such as British billionaire James Dyson’s approximately S$50 million Good Class Bungalow (GCB) overlooking the Botanical Gardens and Eduardo Saverin’s purchase of a bungalow for S$230 million.

Similarly, Haidilao founders Shi Yonghong and Zhang Yong, along with Zhang Yong’s son, and Wang Qianqian from China and her brother Wang Tian Long, have invested in expensive properties, further accentuating the trend of wealthy individuals acquiring high-value assets in Singapore.

In March, a report on EdgeProp disclosed that Wang Qianqian, now a Singapore citizen, acquired a Good Class Bungalow in Holland Rise from former Minister for National Development, Mah Bow Tan, for S$50 million.

Quoting a real estate company owner, Dr Chee emphasized how the surge of newly minted citizens purchasing prestigious properties, particularly GCBs, has led to soaring prices.

Initially dominated by Chinese nationals and Singaporean buyers, this trend now includes individuals from diverse backgrounds such as Hong Kong, Taiwan, India, Pakistan, and beyond.

Dr Chee starkly contrasted the rapid wealth accumulation of these new affluent citizens with the financial struggles faced by ordinary Singaporeans.

He underscored the long-term implications for social equity and cohesion resulting from this disparity.

Highlighting the disparity in property ownership, Dr Chee pointed out that while many Singaporeans reside in HDB flats subject to return to the government after 99 years, newly wealthy citizens can acquire and pass down freehold properties, thus exacerbating wealth inequality over generations.

Quoting Mr Ravi Menon, the former managing director of the Monetary Authority of Singapore (MAS), Dr Chee reiterated the concern that “income from property grows much faster than income from work,” further exacerbating wealth inequality. He stressed the urgency of addressing this development to safeguard Singapore’s social fabric and equity.

Dr Chee poses a poignant question, asking if Singapore transformed into a nation primarily comprising grab drivers, food deliverers, and real estate agents, all serving foreigners in our own country?

He shares a personal anecdote about a highly educated Singaporean driving for Grab, juxtaposing this with the high earnings of naturalized citizens like DBS CEO Priyush Gupta, while thousands of Singaporeans struggle to make ends meet, with many even facing homelessness.

Reflecting on Prime Minister Lee Hsien Loong’s cautionary words from 2008 about the limits of foreign worker expansion, Dr Chee provides statistics on the exponential increase in the non-resident population since 2000, nearing 1.8 million in 2023.

He suggested that the recent spike may be attributed to pandemic-induced labour demands but emphasised the ongoing need to accommodate this vast population.

Dr Chee critiques the PAP’s approach, which involves clearing large swathes of forest and reclaiming land to house the expanding non-citizen population, thus compromising precious green ecosystems and exacerbating climate change.

He emphasized the adverse effects on people’s stress levels and mental health, concluding that this trajectory is unsustainable.

Ending his message, Dr Chee said he will present the SDP’s alternative approach in his next video, aimed at reducing reliance on foreigners while fostering greater productivity and contentment among Singaporeans.