Speculative Element in Prices of HDB Shophouses

Mr Ong Teng Koon asked the Minister for National Development (a) whether there is currently a speculative element that exists in the prices of HDB shophouses; (b) whether there are citizenship eligibility criteria for the purchase of HDB shophouses; and (c) if so, whether the Ministry will consider imposing stricter citizenship eligibility criteria for such purchases by individuals as well as companies.

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There are 8,700 HDB sold shops. Singaporeans and Singaporean-owned companies own about 95% of the sold shops. The remaining 5% are owned by PRs, foreigners and foreign-owned companies. Since 1998, HDB has ceased the direct sale of HDB shops.

Over the last five years, resale transactions involving HDB sold shops made up 3% to 7% of the total stock of HDB sold shops. From January to August 2012, there were 216 such transactions. Of these, 14 shops, or 6%, were resold within one year of purchase. This does not suggest a speculative element in HDB shops.

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HDB sold shops are transacted in the market on a willing-buyer-and-willing-seller basis, without restrictions and in accordance with demand, similar to other private commercial properties. It will not be tenable for HDB to impose new restrictions, such as stricter citizenship eligibility.

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