Pages

Tuesday, September 23, 2014

Government Policies relating to Property Market 2009 - Jan 2013

Singapore's Property Market Cooling Measures and Government Policies
Source: SLP International Property Consultants (2011); “Property Herald, 4Q2011”

Announcement Date
Summary of Government Property Market Curbs & Government Policy
14 Sep 2009
·         Removed Interest – Absorption Scheme (IAS) and Interest – Only Housing Loans

19 Feb 2010
·         New Sellers’ Stamp Duty (SSD): 1% - 3% if sold in year 1
·         Loan to value (LTV) lowered from 90% to 80%
·         Increased number of residential sites for sale in GLS program

30 Aug 2010
·         LTV (2nd mortgage) lowered from 80% to 70%
·         Sellers’ Stamp Duty imposed increased from 1 year to 3 years from which property is bought
·         Increased minimum cash payment from 5% to 10% for buyers with outstanding loans
·         HDB Minimum Occupation period increased from 3 years to 5 years
·         Concurrent ownership of HDB flats and private residential property within the 5-year MOP is disallowed

13 Jan 2011
·         LTV (2nd mortgage) lowered from 70% to 60%
·         LTV (2nd mortgage) lowered from 70% to 50% for non-individual property purchasers
·         Sellers’ Stamp Duty of 16%, 12%, 8% and 4% for private homes bought and sold within 1 year, 2 years, 3 years and 4 years respectively.

15 Aug 2011
·         HDB income ceiling raised to $10,000 from $8,000
·         EC income ceiling raised to $12,000 from $10,000

7 Dec 2011
·         Additional Buyer’s Stamp Duty imposed
·         Singapore citizen: 3% ABSD for the 3rd and subsequent residential property purchase
·         Permanent Resident: 3% for the 2nd and subsequent residential property purchases
·         Non-resident foreigner and corporate entity: 10% ABSD for all residential property purchases

5 Oct 2012
·         Tenure of all loans for residential property is capped at 35 years. This will apply to loans to both individual and non-individual borrowers, as well as refinancing loans, from 6 October 2012
·         LTV ratio for new residential property loans to borrowers who are individuals, if the tenure exceeds 30 years; or if the loan period extends beyond the retirement age of 65 years. For these loans, the LTV limit will be:
·         40% for a borrower with one or more outstanding residential property loanss; and
·         60% for a borrower with no outstanding residential property loan.

12 Jan 2013
·         Additional Buyer’s Stamp Duty imposed on, (i) PRs purchasing their first residential property at 5%; (ii) Singaporeans purchasing their second residential property at 7%.
·         LTV lowered for (i) individuals obtaining a second housing loan to 50%, (ii) individuals obtaining third or subsequent housing loans to 40%, (iii) non-individual borrowers to 20%.
·         Minimum cash down payment for individuals applying for a second or subsequent housing loan increased from 10% to 25%.
·         HDB will offer housing loans with mortgage servicing ratios (MSR) of up to 35% of gross monthly income, down from 40%. For loans granted by financial institutions, MSR is set at 30%.
·         PR households will be disallowed from subletting their whole HDB flat.
·         PR households must dispose of their HDB flats within 6 months of purchasing a private residential property in Singapore.



No comments:

Post a Comment

Please note that this is a "news clipping" blog. Articles may have been authored elsewhere and "clipped" to this blog for ease of reference. The blog "owner" is usually not the author and does not have any means of relaying your comments or questions to the author or authors.

Comments that will drive discussion and explore issues may be kept. Other comments may be deleted.