Singapore's New Cooling Measures
1. Higher additional buyer’s stamp duties (ABSD) rates
While there are no changes to the additional buyer’s stamp duty (ABSD) rates for citizens and permanent residents purchasing their first property, which stand at 0% and 5% respectively, the former would have to pay an ABSD rate of 17% for their second property, and 25% for property purchases thereafter. This marked a 5% increase in the ABSD on their second property, and that of 10%, for subsequent properties.
The ABSD rate for permanent residents went up from 15% to 25% on the second property, and 15% to 30% on the third and subsequent properties. Foreigners would now have to pay 30% ABSD on the purchase of any residential properties, and entities, 35%.
The cooling measures would also have an impact on buyers of equity interest property-holding entities. From up to 34%, additional conveyance duties have increased to a maximum of 44%.
2. Tighter debt thresholds and loan limits The total debt servicing ratio (TDSR) threshold has been tightened, such that the monthly loan repayments cannot exceed 55% of the borrower’s total monthly income. The loan-to-value (LTV) limit for the purchase of a new HDB flat has also been tightened from 90% to 85%.
Are you feeling stumped by the new cooling measures introduced? Get in touch with Chee Seng at 81617124, for assistance with your property investment journey.