GEORGE TOWN: The state government has no control over privately-owned pre-war buildings, said state Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo.

“The purchase of pre-war properties is, unfortunately, based on free market principles (based on supply and demand).

“We can impose price control on developers for affordable housing but not pre-war buildings which are privately owned,” he said when met at the launch of a new gurdwara in Bayan Baru yesterday.

Jagdeep said there have been some suggestions to bring back the Rent Control Act by the non-governmental organisations (NGOs).

“Unfortunately, there is nothing that we can do to prohibit foreigners from purchasing pre-war properties. The trend of Singaporeans buying properties in bulk is nothing new.

“The Rent Control Act 1966 was repealed in the mid-90s, which saw a lot of people relocating from George Town because rental prices went up.

“We need more facts on the issue. We are open to suggestions by any party if it can be done legally,” he added.

It was reported that the pre-war property market in the heritage enclave could be overheating with foreign corporations “snapping them up by the rows” and causing the rentals to sky-rocket.

The properties could be leased out at more than 500% above the previous rent after some sprucing up.