Government policies introduced to keep the Singapore property market stable and affordable by curbing speculative or excessive borrowing. They include tools like Additional Buyer's Stamp Duty, tighter loan-to-value limits, and debt-servicing caps, which are tightened or loosened over time as conditions change.
Example: Raising ABSD rates for foreigners and second-property buyers is a classic cooling measure aimed at dampening investment demand.
The most significant are Additional Buyer's Stamp Duty (ABSD), the Total Debt Servicing Ratio (TDSR) cap, Loan-to-Value (LTV) limits on how much you can borrow, and Seller's Stamp Duty (SSD) on quick resales. The specific rates change over time and should be checked against IRAS and MAS.
To prevent property prices from rising faster than incomes and to discourage speculation funded by heavy borrowing. The goal is a stable, sustainable market where homes remain affordable for owner-occupiers rather than driven up by investors.