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Singapore Cooling Measure

Singapore Property
Cooling Measure

Cold & Hot House

Since 2009 there are 10 cooling measures including the latest EC Cooling Measure on 9th of Dec 2013 introduced to cool down out Property Market. The following are the Summary of all the Cooling Measures

 

 

Newest 10th Round – 9th of December 2013

On 9th of December 2013 The government has introduced three measures to refine its Executive Condominium Housing Scheme. There are 3 parts to this new cooling measures:

  1. Reduce EC Cancellation Fees from 20% to 5%
  2. Resale Levy for Second-Timer Applicants, similar to second-timer applicants who buy BTO flats. (Above 1 & 2 applies to EC land sales which is launched on or after 9 Dec 2013.)
  3. Revision of Mortgage Loan Terms (3 applies to Option to Purchase which is granted on or after 10 Dec

 

9th Round – 28th August 2013

  1. Bank’s max HDB tenure reduced from 35 to 30 years
  2. Bank’s HDB LTV reduced from 80% to 60% if > 25 to 30 years or loan past age 65

 

8th Round – 29th June 2013

  1. All borrowers to be mortgagors and no guarantors;
  2. Total Dept Servicing Ratio (TDSR) capped at 60% for property loans for Singapore & Overseas for residential / non-residential properties to individuals or entities set up solely to purchase property.
  3. For joint borrowings, the income-weighted average age of borrowers to be used.

 

7th Round – 12 January 2013

  1. ABSD (Additional Buyer Stamp Duty):
    • PR’s 1st property (5%) & Singaporen’s 2nd property (7%)
    • PR’s 2nd property & Singaporea’s 3rd Property at (10%)
    • Foreigners & Company (15%)
  2. LTV (Loan to Value)
    • 2nd Housing Loan at 50% (30% if tenure > 30 years or loan past age 65)
    • 3rd Housing Loan at 40% (20% if tenure > 30 years or loan past age 65)
    • For corporates LTV drop from 40% to 20%
  3. Min Cash Down Payment
    • Applying for 1st Housing Loan: No Change. i.e. 5% and 10% if tenure > 30 years or loan extends past age 65.
    • 2nd and subsequent Housing Loan at 25% (increase from 10%)
  4. Mortgage Service Ratio (MSR) for HDB Loan for purchase & refinancing change to 30% of borrower’s gross monthly income.
  5. PR HDB flat restriction.
    • PRs will need to sell flat within 6 months of private property purchase (BUC – 6 months from TOP/CSC)
    • PRs are not allow to sublet their whole flat.
  6. Executive Condominium
    • The maximum strata floor area of new EC units will be capped at 160 square metres.
    • Sales of new dual-key EC units will be restricted to multi-generational families only.
    • Developers of future EC sale sites from the Government Land Sales programme will only be allowed to launch units for sale 15 months from the date of award of the sites or after the physical completion of foundation works, whichever is earlier.
    • Private enclosed spaces and private roof terraces will be treated as gross floor area (GFA). The GFA of such spaces in non-landed residential developments, including ECs, will be counted as part of the ‘bonus’ GFA of a residential development and subject to payment of charges. This is in line with the treatment of balconies under URA’s current guidelines.
  7. Seller’s Stamp Duty (SSD) for Industrial Properties
    • Up to 1 year – 15%
    • More than 1 year and up to 2 years – 10%
    • More than 2 years and up to 3 years – 5%
    • More than 3 years – No SSD payable

Here is the chart for easy reference.

1614438_orig
For more reference about the Stamp Duty Payable, you can visit IRAS for more information

6th Round – 6th of October 2013

  1. Capping all residential loans at 35 years. Loan > 30 years will attract higher LTV, applicable to both private and HDB properties.
    1. For Individuals without outstanding home loans
      • LTV is 80% if loan tenure does not exceed 30 years, or loan period is within retirement age of 65.
      • LTV is 60% if tenure is 30-35 years, or if its extends beyond retirement age.
    2. For individuals already with outstanding home loans (inc. HDB Loans)
      • LTV is 40% if new home loan.
    3. For non-individuals, LTV for residential home loan is lowered from 50% to 40%

5th Round – 8th of December 2011

  1. Introducing of Additional Buyer’s Stamp Duty (ABSD)
    • +10% for foreigners
    • +3% for PR’s 2nd property
    • +3% for Singaporean’s 3rd property and above.

    *the above is additional to existing Stamp Duty.
    ~ 1% on the 1st $180K
    ~ 2% on the end $180K
    ~ 3% on the remainder

4th Round – 14th of January 2011

  1. SSD (Seller’s Stamp Duty) increased to 4 years (16%; 12%; 8%; 4%)
  2. LTV lowered to 50% for non-individuals
  3. LTV lowered from 70% to 60% for individuals with one or more outstanding housing loans.

3rd Round – 30th of August 2010

  1. SSD increased to 3 yaers (i.e 3% for 1st year; 2% for 2nd year and 1% for 3rd year)
  2. For buyers already with one or more outstanding housing loans (inc. HDB Loans)
    • Minimum cash payment is increased from 5% to 20%
    • LTV is lowered from 80% to 70%

2nd Round – 20th of February 2010

  1. Introduction of Seller’s Stamp Duty (SSD) for properties sold within 1 year of purchase (ad-volorem up to 3%)
  2. Lowering LTV to 80% for all housing loans provided by Financial Institutes.

1st Round – 14th of September 2009

  1. Reinstatement of the Confirmed List for 1H10 GLS
  2. Removal of Interest Absorption Scheme (IAS) and Interest-Only Housing Loans (IOL)
  3. Non-extension of Jan 2009 Budget assistant measures (mainly pertaining to Residential Property Act)