In Loan Supermart’s final installation in the series of property cooling measures by the Singapore Government, we highlight the seventh round of measures announced earlier this year in January 2013 (To date, Singapore has undergone eight rounds of property cooling measures since 2009. Click here to read our earlier article on the eighth round of cooling measures imposed back in June 2013).
Despite the Government’s several attempts to cool the property market in order to moderate skyrocketing housing prices, demands have stubbornly been on the steady ascent. This, the Government believed, reflected the state of low interest rates and climbing income growth in Singapore, coupled with a record-high volume of housing transactions in 2012, particularly for investment purposes.
In their take on ‘desperate times call for desperate measures’, the Government called for a seventh round of property cooling measures in hopes to put as many holes as possible in attempts to deflate the growing property bubble.
The following is the seventh round of property cooling measures announced 11 January 2013, and addresses problems ranging across the various types of properties in Singapore.
- All Residential Properties
- Additional Buyer’s Stamp Duty (ABSD) rates will be raised between five and seven percent, and imposed on Permanent Residents (PRs) purchasing their first residential property and Singaporeans purchasing their second residential property.
- Loan-to-Value limits on housing loans will be lowered for individuals and non-individuals (i.e. companies etc.) with existing housing loans.
- The minimum cash down payment for individuals applying for a second or
These measures were noted to be extensive and significant, but were required to
temporarily cool the market. They will be reviewed in view of evolvement of the
property market in the near future.
- Public Housing
- The Monetary Authority of Singapore (MAS) will reduce the Mortgage Servicing
- PRs who own a HDB flat will not be allowed to sublet their whole flat.
- PRs who own a HDB flat must sell their flat within six months of purchasing a subsequent housing loan will also be raised from 10% to 25%. Ratio (MSR) to 30% for bank loans and 35% for HDB loans. private residential property in Singapore.
- Executive Condominiums
- The maximum strata floor area will be capped at 160 square metres.
- Sales of the new dual-key EC units will only be to multi-generational families.
- EC sales sites from the Government Land Sales programme can only launch units
- Private enclosed spaces and roof terraces will be treated as gross floor area for sale 15 months from the date of award of the sites or after the completion of foundation works, whichever is earlier. (GFA) and counted as part of the ‘bonus’ GFA of a residential development and subjected to additional payment of charges
- Industrial Property Market
- Introduction of Seller’s Stamp Duty (SSD) to discourage short-term property speculation. The rates will apply for industrial properties and land bought and sold within three years from the date of purchase.