Is Singapore Cooling Measures 2022 a good or bad news for Sellers & Buyers?
Singapore Cooling Measures 2022. What has changed?
Singapore introduces measures to cool the booming property market on Dec 16, 2021. This comes in the wake of strong sales volumes. Transaction volumes in the private housing market and HDB resale market have been high despite the Covid-19 situation.
The government had raised additional buyer's stamp duty (ABSD) rates and tightened the total debt servicing ratio (TDSR) threshold.
The current ABSD rates for Singapore citizens and permanent residents buying their first residential property will remained at 0 per cent and 5 per cent respectively. But the ABSD rates for all other individuals and entities had been raised by 5 to 15 percentage points (refer table below).
The TDSR threshold had been tightened to 60 per cent from 55 per cent. It applied to loans for the purchase of properties where the option to purchase (OTP) had been granted on or after Dec 16.
The loan-to-value (LTV) limit for loans from HDB will be tightened from 90 per cent to 85 per cent. It will apply to new flat application for sales exercises launched after Dec 16, and complete resale applications received by HDB from Dec 16 onwards.
The government will be increasing the public housing and private housing supply to cater to demand too. These cooling measures were implemented to promote a stable and sustainable property market.
Singapore Cooling Measures. Is it a good or bad news to buyers/sellers?
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