Latest Singapore Property Measures

Listed below are the Singapore property measures that the government have introduced since 1996. The Government's objective for these cooling measures is to ensure a stable and sustainable property market where prices move in line with economic fundamentals.



Singapore Property Measures - 12 January 2013

A) Cooling Measures for the Residential Property Market

The following measures will take effect on 12 January 2013:

1. Additional Buyer's Stamp Duty (ABSD) rates will be:
  • Raised between five and seven percentage points across the board.
  • Imposed on Permanent Residents (PRs) purchasing their first residential property and on Singaporeans purchasing their second residential property.
CitizenshipABSD Rate on
1st Purchase
ABSD Rate on
2nd Purchase
ABSD Rate on
3rd & Subsequent
Purchase
Singapore
Citizens
Existing: NA
Revised: NA
Existing: NA
Revised: 7%
Existing: 3%
Revised: 10%
Permanent
Residents
Existing: NA
Revised: 5%
Existing: 3%
Revised: 10%
Existing: 3%
Revised: 10%
Foreigners and nonindividuals
(corporate entities)
Existing: 10%
Revised: 15%
Existing: 10%
Revised: 15%
Existing: 10%
Revised: 15%

2. Loan-to-Value limits on housing loans granted by financial institutions will be tightened for individuals who already have at least one outstanding loan, as well as to non-individuals such as companies. 

3. Besides tighter Loan-to-Value limits, the minimum cash down payment for individuals applying for a second or subsequent housing loan will also be raised from 10% to 25%. 

 1st Housing Loan2nd Housing LoanFrom 3rd Housing
Loan
LTV Limit

Existing Rules
80%; or 60% if the
loan tenure is more
than 30 years or
extends past age 65

Revised Rules 
No change

Existing Rules
60%; or 40% if the
loan tenure is more
than 30 years or
extends past age 65

Revised Rules
50%; or 30% if the
loan tenure is more
than 30 years or
extends past age 65
Existing Rules
60%; or 40% if the
loan tenure is more
than 30 years or
extends past age 65

Revised Rules
40%; or 20% if the
loan tenure is more
than 30 years or
extends past age 65
Minimum
Cash
Down
Payment
Existing Rules
5% (for LTV of 80%)
10% (for LTV of 60%)

Revised Rules
No change
Existing Rules
10%


Revised Rules
25%
Existing Rules
10%


Revised Rules
25%
Non-
Individual
Borrowers
Existing LTV Limit
40%

Revised LTV Limit
20%

B) Cooling Measures Specific to Public Housing

1. Tighter eligibility for loans to buy HDB flats:
  • MAS will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions at 30% of a borrower's gross monthly income.
  • For loans granted by HDB, the cap on the MSR will be lowered from 40% to 35%.
2. PRs who own a HDB flat will be disallowed from subletting their whole flat. 

3. PRs who own a HDB flat must sell their flat within six months of purchasing a private residential property in Singapore.

4. An additional measure will take effect on 1 July 2013 to tighten the terms for granting HDB loans and the use of CPF funds for the purchase of HDB flats with remaining leases of less than 60 years. 

Remaining
Lease
of HDB Flat
Use of CPF fundsHDB Housing Loan
> 60 yearsAllowed based on current
policy, i.e. status quo.
Allowed based on current
policy, i.e. status quo.
30 to 59 yearsAllowed, except for buyers
for whom the remaining
lease cannot cover them to
the age of at least 80.

The total CPF usage by the
household will be the prorated
Valuation Limit (VL)
based on the ratio of the
remaining lease when the
youngest buyer who can
use CPF turns 55 years old,
to the lease at point of
purchase.
Allowed, if remaining lease
can cover the buyer* to the
age of at least 80.

Loan tenure will be the
shortest of: 30 years; 65 years
minus average age of buyers;
and balance lease at the point
of purchase minus 20 years.
20- 29 yearsNot allowed.Allowed, if remaining lease
can cover the buyer* up to the
age of at least 80.

Loan tenure will be the
shortest of: 30 years; 65
minus average age of buyers;
and balance lease at the point
of purchase minus 20 years.
< 20 yearsNot allowed.No HDB housing loan.

C) Cooling Measures for Executive Condominium Developments

The following SSD rates will be imposed on industrial properties and land bought and sold within three years of the date of purchase: 

a) The maximum strata floor area of new EC units will be capped at 160 square metres. 

b) Sales of new dual-key EC units will be restricted to multi-generational families only. 

c) 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. 

d) 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. 

D) Cooling Measure for the Industrial Property Market: Seller's Stamp Duty

The following SSD rates will be imposed on industrial properties and land bought and sold within three years of the date of purchase: 

a) SSD at 15% if the property is sold in the first year of purchase, i.e. the property is held for one year or less from the date of purchase 

b) SSD at 10% if the property is sold in the second year of purchase, i.e. the property is held for more than one year and up to two years from the date of purchase. 

c) SSD at 5% if the property is sold in the third year of purchase, i.e. the property is held for more than two years and up to three years from the date of purchase. 

Sources : Monetary Authority of Singapore (MAS)

Singapore Property Measures - 6 October 2012

MAS Restricts Loan Tenure for Residential Properties

  1. The maximum tenure of all new residential property loans will be capped at 35 years

  2. Loans exceeding 30 years tenure will face significantly tighter loan-to-value (LTV) limits. This will apply to both private properties and HDB flats.
  3. New rules on loan tenure

  4. The new MAS rules impose an absolute limit of 35 years on the tenure of all loans for residential property. This will apply to loans to both individual and non-individual borrowers, as well as refinancing loans1, from 6 October 2012.2

  5. In addition, MAS will lower the LTV ratio for new residential property loans to borrowers who are individuals, if:
    • the tenure exceeds 30 years; or
    • the loan period extends beyond the retirement age of 65 years
  6. For these loans, the LTV limit will be:
    • 40% for a borrower with one or more outstanding residential property loans3; and
    • 60% for a borrower with no outstanding residential property loan.

  7. MAS will also lower the LTV ratio for residential property loans to non-individual borrowers from 50% to 40%.
Sources : Monetary Authority of Singapore (MAS)

Singapore Property Measures - 8 December 2011

  1. Foreigners and non-individuals (corporate entities) buying any residential property will pay an ABSD ( Additional Buyer's Stamp Duty ) of 10%;

  2. Permanent Residents (PRs) owning one and buying the second and subsequent residential property will pay an ABSD ( Additional Buyer's Stamp Duty ) of 3%; and

  3. Singapore Citizens (Singaporeans) owning two and buying the third and subsequent residential property will pay an ABSD ( Additional Buyer's Stamp Duty ) of 3%.

Foreigners under Free Trade Agreements (FTAs)
Foreigners of certain nationalities who fall within the scope of the respective FTAs will be accorded with the same treatment as Singapore Citizens. 

Nationals of:-

  • United States of America
  • Switzerland
  • Liechtenstein
  • Norway
  • Iceland
Such buyers are required to submit an application for remission so as to enjoy the same treatment as Singapore Citizens.

 


Singapore Property Measures - 14 January 2011

  1. Increase the holding period for imposition of Seller's Stamp Duty (SSD) from the current three years to four years;

  2. Raise the SSD (seller stamp duty) rates to 16%, 12%, 8% and 4% of consideration for residential properties which are bought on or after 14 January 2011, and are sold in the first, second, third and fourth year of purchase respectively;

  3. Lower the Loan-To-Value (LTV) limit to 50% on housing loans granted by financial institutions regulated by MAS for property purchasers who are not individuals1; and

  4. Lower the LTV limit on housing loans granted by financial institutions regulated by MAS from 70% to 60% for property purchasers who are individuals with one or more outstanding housing loans at the time of the new housing purchase.

Singapore Property Measures - 30 August 2010

  1. Increase the holding period for imposition of Seller's Stamp Duty (SSD) from the current one year to three years.
    1. Sold within the first year of purchase, i.e. the property is held for 1 year or less from its purchase date – The full SSD rate (1% for the first $180,000 of the consideration, 2% for the next $180,000, and 3% for the balance) will be imposed.

    2. Sold within the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years – 2/3 of the full SSD rate.

    3. Sold within the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years – 1/3 of the full SSD rate.

    4. No SSD will be payable by the vendor if the property is sold more than 3 years after it was bought.


  2. For property buyers who already have one or more outstanding housing loans1 at the time of the new housing purchase:
    1. Increase the minimum cash payment from 5% to 10% of the valuation limit2; and

    2. 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.


  3. The extended SSD will not affect HDB lessees as the required Minimum Occupation Period for HDB flats is at least 3 years.

Singapore Property Measures - 20 February 2010

  1. Introducing a Seller's Stamp Duty (SSD) on all residential properties and residential lands that are bought on or after 20 February 2010 and sold within 1 year from the date of purchase ; and
    1. The SSD will be applied at the standard ad valorem stamp duty rates [5] for the conveyance, assignment or transfer of property: 1% for the first $180,000 of the consideration, 2% for the next $180,000, and 3% for the balance.

    2. The SSD will not be applicable to HDB flats as they are already subject to a minimum occupation period of at least one year.


  2. b) Lowering the Loan-to-Value (LTV) limit to 80% for all housing loans provided by financial institutions regulated by the Monetary Authority of Singapore (MAS)
    1. The LTV limit will be lowered from 90% to 80% for all housing loans provided by financial institutions regulated by the MAS. The 80% LTV limit will apply to all housing loans granted by financial institutions for private residential properties, Executive Condominiums, HUDC flats and HDB flats (including those under the Design, Build and Sell Scheme, or DBSS flats)

    2. Loans granted by HDB for HDB flats (including DBSS flats) will still have an LTV cap of 90%.


Singapore Property Measures - 14 Sep 2009

  1. Reinstatement of the Confirmed List for the 1st Half 2010 Government Land Sales (GLS) Programme.

  2. Removal of the Interest Absorption Scheme (IAS) and Interest-Only Housing Loans (IOL), with effect from 14 Sep 2009.

  3. Non-extension of the Jan 2009 Budget assistance measures for the property market when the measures expire.


Budget Assistance Measures 22 January 2009

  1. Allowing one-year extension of the project completion period (PCP) for existing Government residential sale sites and private residential projects undertaken by foreign housing developers with Qualifying Certificates (QC);

  2. Allowing re-assignment of Government sale sites and private residential land owned by QC holders;

  3. Giving QC holders up to four years [from date of issue of Temporary Occupation Permit (TOP)] to dispose of all private residential units in the development, and

  4. Allowing QC holders to rent out unsold private residential units for a maximum of four years (from date of issue of TOP or the date of application, whichever is later).

  5. Allowing up to 2 years of property tax deferral for land approved for development.


Withdrawal of 1998 Off-Budget Measures - 15 Dec 2006

A concession to defer Stamp Duty payment on all contracts was introduced in June 1998 as part of the off-budget measures to cushion the impact of economic slowdown. The Government has decided to withdraw the concession with immediate effect (from 15 December 2006) as the economic conditions and the property market have improved.


Revised Housing Loan Rules - 19 July 2005

  1. The Monetary Authority of Singapore (MAS) announced that banks may grant housing loans of up to 90% of the property value. Currently, MAS' housing loan rules cap the loan-to-value (LTV) limit at 80%.

  2. As part of the minimum 10% downpayment by the borrower, the minimum cash component for purchases of private residential properties has also been reduced from 10% to 5%. In tandem, the Government has decided to reduce the cash downpayment for HDB flats financed with bank loans to 5%, instead of the originally slated 10%1 on 1 January 2006. This will align the cash downpayment for both HDB and private property.


Singapore Property Measures - October 2001

  1. Capital gains tax was lifted, foreigners were allowed to use SingDollar for housing loan

  2. GLS (Government Land Sales)confirmed List was suspended.

  3. Sites would only be made available through the Reserve List

  4. Property tax was exempted for a period of 2 years for land under development.

Singapore Property Measures - Off-Budget Measure 30 June 1998

Buyers of private residential and non-residential properties (including EC properties) will not have to pay stamp duty upfront upon signing the sale and purchase agreement or upon exercising the option to purchase. They may defer the payment of stamp duty as follows:
  1. For properties under construction (ie Temporary Occupation Permit not issued yet). The buyer will pay the stamp duty within 14 days after the date of Temporary Occupation Permit (TOP) or the date he contracts to sell his interest or part interest in the property, whichever is earlier.

  2. For land and completed properties (ie Temporary Occupation Permit already issued). The buyer will pay the stamp duty within 14 days after the date of transfer of the property or assignment of interest in the property or the date he contracts to sell his interest or part interest in the property, whichever is earlier.

Singapore Property Measures - 15 May 1996 - Anti-speculation measures

  1. 80% financing restriction for property purchase

  2. 7,000-8,000 residential units to be released in 1997

  3. 30-month project completion period (PCP) for private developments under QC scheme

  4. 5% p.a. penalty imposition for PCP extension

  5. stamp duty extended to buyers of all sales and sub-sales of uncompleted properties

  6. new stamp duty on those who sell properties within 3 years

  7. tax on gains from properties sold within 3 years of purchase.
Latest Cooling Measures
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HUTTONS ASIA PTE LTD
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