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.
They are government curbs designed to keep housing affordable and prevent speculation, including Additional Buyer's Stamp Duty (ABSD), the Total Debt Servicing Ratio (TDSR) cap, Loan-to-Value (LTV) limits, the Mortgage Servicing Ratio (MSR) for HDB and EC loans, and Seller's Stamp Duty (SSD) on quick sales.
Singapore Citizens pay 0% ABSD on a first residential property, 20% on a second, and 30% on a third or subsequent. Permanent Residents pay 5% on the first and 30% on the second, while foreigners pay 60% on any residential purchase.
Your total monthly debt repayments are capped at 55% of gross income under the TDSR, and HDB/EC loans are further capped at a 30% MSR. The first housing loan is limited to 75% LTV, dropping to 45% if the tenure runs past age 65 or beyond 30 years (25 for HDB).
SSD discourages quick flipping: residential property sold within one year of purchase attracts 12%, within two years 8%, and within three years 4%, with no SSD after holding for more than three years. It is paid by the seller on the higher of price or market value.