Attorney General Aiyaz Sayed-Khaiyum agrees that at one point in time, the prices of houses went out of control because there was no restriction on the purchase of residential properties by foreigners.
Sayed-Khaiyum says we had foreigners walking in with suitcases full of money and buying residential properties.
He says now it is illegal for a foreigner to buy residential properties within the municipalities.
The Attorney General says following this, the prices have stabilised.
He says if a foreigner wants to buy properties outside the municipal areas, they have to spend at least $250,000 on that land and build within two years of buying that piece of land.
Sayed-Khaiyum says the government now has incentives in place for people to get 99 year strata titles.
He says this is good for young people who want people to buy 1 or 2 bedroom flats as their first home.
Sayed-Khaiyum says the government is now giving grants of $15,000 to people who qualify and are building their first home. He says there also $10,000 grants for those getting their first strata titles.
The Attorney General also stresses that the government cannot put price control on homes as it is market driven.
A student asking about the increasing price of homes at the Budget Roadshow at FNU Nasinu
He made these comments at the Budget Roadshow at FNU Nasinu after a student raised the issue about the increasing prices of homes.
The student asked the Attorney General what is the stand of the government regarding the prices of properties as they have gone up many folds.
The student said that the price of homes have gone up by 500% to 700% in the last 30 years.
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