Cooling Measures

Singapore Property Market Cooling Measures

Have you been wondering how Singapore property cooling measures that impact our property market evolved over the years? We have listed out the cooling measures that will affect Singapore’s private residential property from 2009 until the latest measure in 2018 that were implemented by our government.

Singapore property Cooling Measure chart 2009 to 2019

6 July 2018

  1. Revised of ABSD rates
    1. 5% increment for Singapore Citizens and SPRs on second and subsequent residential properties.
    2. 5% increment for foreigners buying Singapore property
    3. 10% increment for Corporate Entities
    4. 5% Non-remittable ABSD on developers
  2. LTV limits tighten by 5%

Revised ABSD rate on number of Residential Properties. 

CITIZENSHIP 1st 2nd 3rd AND MORE
SCs
N/A
7% to 12%
10% to 15%
PRs
5%
10% to 15%
10% to 15%
Foreigners*
15% to 20%
15% to 20%
15% to 20%
Corporate Entities
15% to 25%
15% to 25%
15% to 25%
*Citizens of the USA, Switzerland, Liechtenstein, Norway, Iceland will be treated the same as Singapore Citizens due to FTA agreement.

Revised LTV limit on number of Home Loans. 

Tenure 1st 2nd 3rd and more
<= 30 years
80% to 75%
50% to 45%
40% to 35%
> 30 years or *
60% to 55%
30% to 25%
20% to 15%
*Age + Loan Tenure past 65 years old

11 March 2017

  1. Seller Stamp Duty (SSD) was reduced to 3 years from 4 years
Purchase date Year 1 Year 2 Year 3 Year 4
20 Feb 2020 - 29 Aug 2010
3%
N/A
N/A
N/A
30 Aug 2010 - 13 Jan 2011
3%
2%
1%
N/A
14 Jan 2011 -10 Mar 2017
16%
12%
8%
4%
After 11 Mar 2017*
12%
8%
4%
N/A

* Inclusive of 11 Mar 2017

9 December 2013

9 December 2013 cooling measures are mainly targeted at Executive Condominium, eg Parc Central Residences EC.

  1. Cancellation Fees for Executive Condominium is reduced from 20% to 5%
  2. Resale Levy applicable to Second-Timer applicants for EC land sales that are launched on or after 9th December 2013.
  3. Mortgage Servicing Ration (MSR) will apply to Executive Condominium that is purchased from 10th December 2013 onwards.

First subsidised flat sold on or after 3rd March 2006

subsidised house type Resale Levy (Household) Resale Levy (Single Grant)
2-room flat
$15,000
$7,500
3-room flat
$30,000
$15,000
4-room flat
$40,000
$20,000
5-room flat
$45,000
$22,500
Executive flat
$50,000
$25,000
Executive Condominium
$55,000
N/A

First subsidised flat sold before 3rd March 2006

subsidised house type Resale Levy (Household) Resale Levy (Single Grant)
2-room flat
10%* or 15%
5%* or 7.5%
3-room flat
20%
10%
4-room flat
22.5%
11.25%
5-room and Executive flat
25%
12.5%

*Only applicable to 2-room flat sellers who upgrade to a larger flat type.

29 June, 2013

  1. Introduction of Total Debt Servicing Ratio (TDSR). All Financial Institutions (FI) are required to make sure the total debts of the borrowers cannot exceed 60% of the gross monthly income. TDSR is widely considered to be one of the most efficient cooling measures.

12 January, 2013

  1. Revised of ABSD rates
    1. 7% increment for Singapore Citizens for second (0% to 7%) and third property (3% – 10%)
    2. Permanent Residents to pay 5% for the first property (previously 0%) and 10% on the second property (previously 3%).
    3. foreigners and corporate entities to pay 15% ABSD
  2. Tightening of LTV. From 60% to 50% and 40% for second and third loans respectively. corporate entities become 20% from 40%
  3. MSR revised from 40% to 35% for HDB housing loans and capped a 30% for financial institutions.

6 October, 2012

  1. Mortgage Tenure to be capped at a maximum of 35 years
  2. LTV limits are lower to 60% for a first home loan and 40% for the second and subsequent home loan for mortgage loans that is longer than 30 years or extended beyond 65 years old.
  3. LTV limits for corporate entities become 40%

8 December, 2011

  1. ABSD was introduced.
    1. Singapore Citizens to pay 3% ABSD for third and subsequent property
    2. Permanent Residents to pay 3% ABSD for second and subsequent property
    3. Foreigners and corporate entities to pay 10% to purchase Singapore’s property.

14 January, 2011

  1. Revised of SSD
    1. SSD rates increased to 16%, 12%, 8% and 4% based on your holding period
    2. Holding period increased from three years to four years
  2. Revised of LTV limits
    1. For the second loan, LTV limits were revised from 70% to 60%
    2. Non-individual LTV limits were capped at 50% for residential property.

30 August, 2010

  1. SSD was revised from one year to three years
  2. LTV limits were revised from 80% to 70% for second properties
  3. Minimum cash down payment increased from 5% to 10% for a second or subsequent mortgage loan.

20 February, 2010

  1. SSD was introduced for the residential property than were sold within one year of purchase
  2. LTV limits were revised from 90% to 80% for housing loans from financial institutions.

14 September, 2009

  1. Interest absorption scheme (IAS) (deferment of installments for Singapore New Condo Launch until TOP) and interest-only housing loans (IOL) were removed.
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