Property Cooling Measures in Singapore

My Exclusive Condo Buyer & Seller Must Know

For the past few years, the Singapore government has been implementing several property cooling measures to stabilise property prices in Singapore and avert property bubble from forming in our homeland. For investors or home buyers who are interested to purchase any Singapore New Launch Condo or Singapore property,  it will be important to know the cooling measures well before making any purchase.

Cooling Measures in Singapore Property Market

14th Sept 09(a) Removal of
(i) Interest Absorption Scheme
(ii) Interest-only Housing Loans

b) Government Land Sale Programme reinstated
20th Feb 10(a) Maximum Loan-To-Value (LTV) limit reduced from
90% to 80% ( Excluding HDB loans)

(b) Seller Stamp Duty (SSD) levied on sale of private residential property & land within 1 year of purchase
30th Aug 10(a) Seller’s Stamp Duty (SSD) holding period increased to 3 years (full SSD if
sold within 1st year, 2/3 SSD if sold within 2nd year and 1/3 SSD if sold within the 3rd year.

(b) For buyers with outstanding home loan, minimum cash downpayment increased from 5% to 10% of valuation limit

(c) LTV reduced from 80% to 70% for second properties

(d) Minimum Occupation Period (MOP) of non-subsidised HDB flats increased from 3 to 5 years (resale and subletting restriction)
14th Jan 11(a) SSD holding period increased to 4 years and rates chargeable changed to 16%, 12%, 8% and 4%

(b) LTV lowered from 70% to 60% for individual borrowers with more than 1 outstanding home loan

(c) LTV capped at 50% for entities
8th Dec 11(a) Additional Buyer's Stamp Duty (ABSD) introduced on top of existing Buyer’s Stamp Duty (BSD)
(i) Foreigners & Companies - 10%
(ii) PRs' 2nd & subsequent property - 3%,
(iii) Singaporeans' 3rd & subsequent property - 3%.

(b) ABSD waiver on Developers buying >4 residential units with the intention to develop them as residential properties for sale.
8th Dec 11(a) Additional Buyer's Stamp Duty (ABSD) introduced on top of existing Buyer’s Stamp Duty (BSD)
(i) Foreigners & Companies - 10%
(ii) PRs' 2nd & subsequent property - 3%,
(iii) Singaporeans' 3rd & subsequent property - 3%.

(b) ABSD waiver on Developers buying >4 residential units with the intention to develop them as residential properties for sale.
6th Oct 12(a) Maximum 35 years for loan tenure

(b) LTV reduced to
(i) 60% - 1st Mortgage, tenure >30 years or past age 65,
(ii) 40% - 2nd and subsequent mortgage

(c) LTV for entities lowered from 50% to 40%
12th Jan 13(a) ABSD Adjustment
(i) Foreigners & Entities - 15%

(ii)
- PRs' 1st property - 5%,
- PRs' 2nd & subsequent property - 10%,

(iii)
- Singaporeans' 1st Property - Nil
- Singaporeans' 2st Property - 7%.
- Singaporeans' 3rd & subsequent property - 10%.

(b) LTV changes
(i) 50% with 1 outstanding home loan / 30% if tenure >30 years or past age 65
(ii) 40% with 2 outstanding home loan / 20% if tenure >30 years or past age 65
(iii) Entities LTV reduced from 40% to 20%

(c) Minimum cash downpayment
(i) No outstanding home loan - No change, i.e. 5%/ 10% if tenure >30 years or past age 65
(ii) 2nd outstanding home loan - 25% (Increased from 10%)

(d) Mortgage Servicing Ration (MSR)
(i) HDB loans capped at 35% of borrower's gross monthly income (40%)
(ii) financial institutes capped at 30%

(e) No renting out of entire HDB flat for PRs.
29th Jun 13(a) 60% Total Debt Service Ratio (TDSR) threshold -Borrowers' (Individuals' and entities') total monthly repayments of his debt obligations should not exceed 60% of his gross monthly income. Haircut of ≥ 30% on variable income, rental & assets

(b) Borrowers to be mortgagors, guarantors to be co-borrowers

(c) Loan Tenure of joint borrowers determined by income-weighted average age
28th Aug 13(a) Financial institutions’ maximum HDB tenure reduced from 35 years to 30 years.

(b) Maximum tenure for HDB housing loans is reduced from 30 years to 25 years. The Mortgage Servicing Ratio (MSR) limit is reduced from 35% to 30% of the borrower's gross monthly income.

(c) SPR will only be able to purchase resale HDB flats after obtaining SPR status for 3 years
10th Dec 13(i) Mortgage Service Ration (MSR) for EC purchased from Developer & EC refinancing within minimum occupancy period capped at 30 % of borrower's gross monthly income

(ii) EC resale levy for 2nd time applicants

(iii) Cancellation fee of private residential properties reduced from 20% to 5 %
10th Mar 17(a) SSD holding period reduced to 3 years (full SSD if
sold within 1st year, 2/3 SSD if sold within 2nd year and 1/3 SSD if sold within the 3rd year
20th Feb 18The BSD is increased to 4% for residential property that is sold at value / price of $1 million and above.
6th July 18(a) Revised ABSD

(i) Foreigners - 20%
(ii) Entities - 25% (Additional 5% which is non-remittable for developers)
(ii) PRs' ' 2nd & subsequent property - 15% ,
(iii) Singaporeans’ ' 2nd & subsequent (3rd and beyond) property - 12% & 15% respectively

(b) Revised LTV Limits
(i) 75% for borrowers with no existing home loan / 55% if tenure >30 years or past age 65
(ii) 45% for borrowers with 1 existing home loan / 25% if tenure >30 years or past age 65
(iii)35% for borrowers with 2 existing home loans / 15% if tenure >30 years or past age 65
16th Dec 21a) Revised ABSD

(i) Foreigners - 30%
(ii) Entities - 35% (Additional 5% which is non-remittable for developers)
(ii) PRs' 2nd & subsequent (3rd and beyond) property - 25% & 30% respectively,
(iii) Singaporeans’ 2nd & subsequent (3rd and beyond) property - 17% & 25% respectively
27th Apr 23a) Revised ABSD

(i) Foreigners - 35%
(ii) Entities - 35% (Additional 5% which is non-remittable for developers)
(ii) PRs' 2nd & subsequent (3rd and beyond) property - 30% & 35% respectively,
(iii) Singaporeans’ 2nd & subsequent (3rd and beyond) property - 20% & 30% respectively
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