Singapore New Property Rules to cool Market

[Edy]

The Government announced today the following measures to maintain a stable and sustainable property market:

a) Increase the holding period for imposition of Seller’s Stamp Duty from the current one year to three years (imposed on pro-rata).

b) For property buyers who already have one or more outstanding housing loans at the time of the new housing purchase:
i. Increase the minimum cash payment from 5% to 10% of the valuation limit2; and
ii. Decrease the Loan-to-Value (LTV) limit for housing loans granted by financial institutions regulated by MAS to these buyers from the current 80% to 70%.

The measures will take immediate effect on 30 August 2010.

Read fulll MAS release here: http://www.mas.gov.sg/news_room/pres...ty_Market.html

[stonston]

Sian to the max... it'll affect us... we intend to buy a condo in bukit timah area next yr.... gotta shelf plans and wait till our current property is 5yo (i.e. 2014) - that will be when my boy goes to P1... super sian... we wanted to buy the property BEFORE he enters P1 so we can settle in there before he starts school.... BOO!!!!!

[elmo493]

Hopefully it will bring down the ridiculous COV

[Kelly sky777]

Hi Today the MM advised singaporeans not to sell their HDBS flat. The value will go up and up and for those who go for rented flat if sell, they will have to wait very long!!

[Edy]

More rules

SINGAPORE - The Singapore government today announced new measures to maintain a stable and sustainable property market, which will take effect by tomorrow, January 14.


From tomorrow, the holding period for the imposition of Seller's Stamp Duty (SSD) will be increased from the current three years to four years.


Currently, for residential properties bought on or after 30 August 2010, SSD is imposed on the sale of such properties within three years of purchase. This followed the introduction of SSD for residential properties bought on or after 20 February 2010.


The SSD rates will also be increased sharply so as to provide a strong disincentive for investors looking to make
short term gains. The impact of the SSD is especially significant as it is payable regardless whether the property is eventually sold at a gain or loss.
For residential properties bought on or after 14 January 2011, the SSD rates to be levied on the full consideration will be increased to as follows:

1. SSD at 16 per cent (higher than up to 3 per cent currently), if the property is sold in the first year of purchase, i.e. the property is held for 1 year or less from its purchase date.
2. SSD at 12 per cent (higher than up to 2 per cent currently), if the property is sold in the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years.
3. SSD at 8 per cent (higher than up to 1 per cent currently), if the property is sold in the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years.
4. SSD at 4 per cent (no SSD currently), if the property is sold in the fourth year of purchase, i.e. the property is held for more than 3 years and up to 4 years.

Currently, the SSD rates are levied at the same rate as buyer's stamp duty, i.e. 1 per cent for the first $180,000, 2 per cent for the next $180,000 and 3% on the balance. The SSD rates are tiered according to the duration of the holding period, i.e. the seller pays the full SSD rate if the residential property is sold in the first year of purchase; 2/3 the full SSD rate if the sale is in the second year; 1/3 the full SSD rate if in the third year.


Changes to Loan-To-Value limit
The Loan-To-Value (LTV) limit on housing loans granted by financial institutions regulated by MAS for property purchasers who are not individuals will be lowered to 50 per cent. This includes corporations, trusts and collective investment schemes, among others, as well as to joint property purchases by an individual and a purchaser who is not an individual.


Meanwhile, the LTV limit on housing loans granted by financial institutions regulated by MAS individuals with one or more outstanding housing loans at the time of the new housing purchase will be lowered from 70 per cent to 60 per cent.



However, borrowers who can show evidence that they have sold their existing properties will not be subject to the lower LTV limit when they buy a new property.



Where the existing property is a private property, he can show a signed Sale & Purchase (S&P) agreement with the IRAS certificate showing that stamp duty has been paid on it. Where the existing property is a HDB flat, he can show HDB's approval letter to sell the flat, that HDB will issue within 2 weeks of the First Appointment. These borrowers will still be able to borrow at an 80 per cent LTV from financial institutions.


Borrowers without any outstanding housing loans continue to have a LTV cap of 80 per cent.


These rules apply to housing loans granted by financial institutions for private residential properties, Executive Condominiums, HUDC flats and HDB flats (including DBSS flats).


Loans granted by HDB for HDB flats (including DBSS flats) will still have a LTV cap of 90 per cent.


The Government will continue to monitor the property market closely and take further steps to promote a stable and sustainable property market if necessary.


Source New measures to cool Singapore's property market

[waka]

Hopefully it really help to cool down the market asap.

[christophers]

Hopefully it really help to cool down the market asap.

Yes waka.

it will really help us.

[waka]

Ya indeed it has cool off as in cov is lower but valuations goes up. dont't know if it a good or bad thing.

[cheeisabelle]

probably the property market will start cooling down from now onwards.