Property Cooling Measures In Singapore 2013


SUMMARY OF PROPERTY COOLING EVENTS IN SINGAPORE FROM NOV 2008 – 12 Jan 2013 : EARLIER ROUNDS OF COOLING MEASURES

QUANTITATIVE EASING  [1]  WEF NOV 2008

US govt  printed US $$1.2 trillion worth of new
money throughout the entire 2009 up to August 2010

COOLING MEASURES  [1] WEF 20 FEB 2010

Seller’s Stamp Duty (SSD) imposed on
private property sold within 1 years of
acquisition.

COOLING MEASURES [2] WEF 30 AUG 2010

Seller’s Stamp Duty Duty (SSD) imposed on private
property sold within 3 years of acquisition.. Tax
rates are as follows rates follows:
- Full tax for property sold within first year;
- 2/3 tax for property sold within second year;
- 1/3 tax for property sold within third year.
- Loan-to-Value Loan lowered to 60%for
individual purchasers with two or more
home loans; 50%% for borrowers who are
non individual.

QUANTITATIVE EASING [2] WEF NOV 2010

US govt printed US $$800 billion worth of new
money from 2010 to June 2011.


COOLING MEASURES [3] WEF 14 JAN 2011


Seller’s Stamp Duty (SSD) enhanced to
include properties sold within 4 years of
acquisition. Tax rates enhanced as follows:
- 16% on consideration or market valuation, whichever is higher for property sold within 1st year;
- 12% for property sold within 2nd year;
- 8% for property sold within 3rd year;
- 4% for property sold within 4th year

COOLING MEASURES [4] WEF 8 DEC 2011

Additional Buyer’s Stamp Duty (ABSD)
imposed on the following:

-10% for FOREIGNERS and non-individual purchasing a private residential property;( EXCEPT FOR US CITIZEN EXEMPTED)
- 3% for Permanent Residents of Singapore (SPR) purchasing second residential property; and
- 3% for Singapore Citizens purchasing third property
  

COOLING MEASURES [5] WEF 6 OCT 2012

Loan-to-Value for home loans lowered to 40% for borrowers with existing
home mortgages or home loans and wanting a longer repayment term exceeding 30 years or extending beyond retirement age of 65 years. Maximum loan term capped at 35 years.


COOLING MEASURES [6] WEF 12 JAN 2013


New property cooling measures announced
Singapore | Updated today at 06:24 PM


Significant new property cooling measures have been announced.
...
They include size restrictions on executive condominiums, tighter loan-to-valuations and higher buyer stamp duty.

The Government is also implementing a seller's stamp duty on industrial property for the first time to discourage speculative activity in the sector.

Key changes:
- Additional Buyer's Stamp Duty will be raised between five and seven percentage points across the board. To be imposed on PRs purchasing their first residential property and on Singaporeans purchasing their second property. The Government said the ABSD measures are significant but temporary and will be reviewed in future depending on market conditions.

- Individuals obtaining a second housing loan, the LTV limits will be lowered to 50 per cent, or 30 per cent if the loan tenure exceeds 30 years. For individuals obtaining third or subsequent housing loans, LTV will be 40 per cent or 20 per cent if tenure exceeds 30 years. For non-individual borrowers, LTV will be lowered to 20 per cent, from 40 per cent before.

- Minimum cash down payment for individuals who are applying for a second or subsequent housing loan will also be raised from 10 per cent to 25 per cent.

- PRs who own HDB flats will be disallowed for subletting their whole flat

- Max strata floor area for new EC units to be capped to 160 sq m

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

- New sellers stamp duty for industrial property of between 5 per cent and 15 per cent, depending on when it is sold.

This is the seventh round of cooling measures announced by the Government since 2009 and its the most comprehensive set of measures so far.