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.
|
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