{"id":93257,"date":"2018-07-06T10:51:16","date_gmt":"2018-07-06T03:51:16","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-cools-property-market-with-higher-absd-rates-tighter-ltv-limits\/"},"modified":"2018-07-06T11:02:59","modified_gmt":"2018-07-06T04:02:59","slug":"govt-cools-property-market-with-higher-absd-rates-tighter-ltv-limits","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-cools-property-market-with-higher-absd-rates-tighter-ltv-limits\/","title":{"rendered":"Govt cools property market with higher ABSD rates, tighter LTV limits"},"content":{"rendered":"


\nBuyers rushing to submit their cheques at Riverfront Residences before the 12am deadline to avoid the revised ABSD rates. (Photo: Jeanice Ong)
\nThe government has raised the Additional Buyer\u2019s Stamp Duty (ABSD) rates and tightened the Loan-to-Value (LTV) limits on residential property purchases, in a bid \u201cto cool the property market and keep price increases in line with economic fundamentals\u201d.
\nPrices for private housing in Singapore rose by 9.1 percent over the past year, while demand witnessed a strong recovery. Transaction volumes had also been on the uptrend.
\nMore: MAS Calls For Caution Amidst \u201cEuphoria\u201d In Singapore Property Market
\n\u201cThe sharp increase in prices, if left unchecked, could run ahead of economic fundamentals and raise the risk of a destabilising correction later, especially with rising interest rates and the strong pipeline of housing supply,\u201d said the Ministry of Finance, Ministry of National Development and Monetary Authority of Singapore (MAS) in a joint statement.
\nWhile analysts had anticipated the move, they did not expect it to arrive this early.
\n\u201cAfter (Tuesday\u2019s) remarks from MAS\u2019s Mr Ravi Menon, we sort of expected that the government may step in; but did not expect it to be so immediate,\u201d said ERA Realty key executive officer Eugene Lim.
\nHe noted that the government may have brought the measures forward as they expect things to worsen in the event the US-China trade war gathers pace and interest rates increase over time.
\n\u201cBiting the bullet now perhaps may prevent more damage later should things not pan out favourably for Singapore,\u201d he said.<\/p>\n

The current ABSD rates for Singapore citizens and Singapore permanent residents buying their first residential property will remain at zero and five percent respectively.
\nHowever, the ABSD rates for all other individuals will be raised by five percentage points and 10 percentage points for entities.
\nAn additional ABSD of five percent that is non-remittable under the remission rules will be introduced for developers acquiring residential properties for housing development.
\nFor purchases jointly made by two or more parties of different profiles, the highest applicable ABSD rate will apply.
\nHowever, full ABSD remission will still be provided for joint purchases of the first residential property by married couples with at least one Singapore citizen spouse.
\nMarried couples with at least one Singapore citizen spouse, who jointly acquired a second home can still apply for a refund of ABSD, provided they sell their first house within six months following the date of purchase of the second property, or the issue date of the Temporary Occupation Permit or Certificate of Statutory Completion of the second property, whichever is earlier.
\nWhile the new rates are effective today (6 July), there will be a transitional provision for cases where the OTP had already been granted by sellers to potential buyers on or before 5 July.<\/p>\n

Meanwhile, the government tightened the LTV limits by five percentage points for all housing loans provided by financial institutions. The statement noted that the revised LTV limits will not apply to loans granted by the Housing Board.
\nThe new LTV limits will apply to loans for residential property acquisitions where the Option to Purchase is granted on or after 6 July.
\nIn view of the tighter LTV limits for housing loans, LTV limits for mortgage equity withdrawal loans will be tightened to 75 percent for a borrower with no outstanding housing loan for the acquisition of another home, and 45 percent for a borrower with an outstanding housing loan.
\nPropertyGuru\u2019s chief business officer Lewis Ng expects the recovery in the private property market to cool following the revision of the ABSD rates.
\n\u201cThe revision to ABSD rates is likely to lead to a slowdown in the recovery of the private property market, which saw a quarter-on-quarter increase of 3.4 percent in the second quarter of the year,\u201d he said.
\n\u201cFor a second property buyer looking to buy a one-million-dollar unit, this will translate to an additional $50,000 in cash, and a total stamp duty outlay of $160,000, including buyer\u2019s stamp duty.\u201d
\nHe noted that while the ABSD revision is aimed at tempering exuberant investor activity, \u201cthe addition of five percent to mortgage LTV ratios will also increase the financial burden on home seekers looking to buy a home for owner occupancy\u201d.
\n\u201cThis additional five percent will need to be borne in cash or CPF monies, which will further constrain budgets,\u201d he said. \u201cWhile this might be painful for home seekers in the short term, it will enforce financial prudence and create a more stable property market.\u201d
\nHome buyers looking for\u00a0Singapore Properties\u00a0may like to visit our\u00a0Listings,\u00a0Project\u00a0 Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Govt cools property market with higher ABSD rates, tighter LTV limits<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Buyers rushing to submit their cheques at Riverfront Residences before the 12am deadline to avoid...<\/p>\n","protected":false},"author":1,"featured_media":93258,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-93257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2018\/07\/Adjustments-to-ABSD-rates.jpg?fit=1000%2C562&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-og9","jetpack-related-posts":[{"id":123833,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-unveils-new-property-cooling-measures\/","url_meta":{"origin":93257,"position":0},"title":"Singapore unveils new property cooling measures","date":"December 16, 2021","format":false,"excerpt":"\r Singapore unveils new property cooling measuresThe new Singapore property cooling measures, which include a higher ABSD, lower TDSR, and tighter LTV, will take effect from today, 16 December 2021. The Government on Wednesday (15 December) unveiled a package of measures to cool the private residential and HDB resale markets.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/Buildings-singapore.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":93453,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-rationale-for-new-property-cooling-measures-says-redas\/","url_meta":{"origin":93257,"position":1},"title":"No rationale for new property cooling measures, says REDAS","date":"July 9, 2018","format":false,"excerpt":"\r The Real Estate Developers\u2019 Association of Singapore (REDAS) sees no rationale in imposing new property cooling measures considering that the Singapore property market is still in the \u201cearly stages of a recovery and the recovery is in line with economic fundamentals\u201d, reported Channel News Asia. Among the new curbs\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":123859,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-carefully-considered-scope-timing-of-new-cooling-measures\/","url_meta":{"origin":93257,"position":2},"title":"Gov\u2019t carefully considered scope, timing of new cooling measures","date":"December 17, 2021","format":false,"excerpt":"\r Gov\u2019t carefully considered scope, timing of new cooling measuresThe higher ABSD aims to moderate the demand from those who wish to purchase investment properties, while tighter loan limits aim to encourage \u201cgreater financial prudence\u201d among home buyers. The Government has \u201ccarefully considered\u201d the scope and timing of the new\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/singapore-marina.jpg?fit=820%2C411&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":100382,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sentiment-among-property-developers-down-on-july-cooling-measures\/","url_meta":{"origin":93257,"position":3},"title":"Sentiment among property developers down on July cooling measures","date":"October 23, 2018","format":false,"excerpt":"\r The latest round of cooling measures were described as unexpected and surprising, as well as extremely disruptive. Property cooling measures announced in July have dampened sentiment in the property market, with the Real Estate Sentiment Index (RESI) falling sharply to 4.0 in Q3 from 6.6 in Q2, reported the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8177,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/budget-2016-what-to-expect\/","url_meta":{"origin":93257,"position":4},"title":"Budget 2016: What to expect","date":"March 11, 2016","format":false,"excerpt":"\r Key measures will be announced in Budget 2016, and many are wondering if this will mean changes to the property measures. Singapore\u2019s property market faces strong headwinds, but the government seems determined to maintain the cooling measures for now. With more home buyers and developers looking for greener pastures\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/03\/Helen-Ng-683x1024.jpg?fit=683%2C1024&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":49342,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/making-sense-of-the-property-tweaks\/","url_meta":{"origin":93257,"position":5},"title":"Making sense of the property tweaks","date":"March 24, 2017","format":false,"excerpt":"\r View of luxury apartments in downtown Singapore. In a surprising move, the government recently eased some of the property cooling measures. Will it draw home buyers back into the market and push property prices up? We ask the analysts for their views. By Romesh Navaratnarajah On 10 March 2017,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2017\/03\/Hari-V.-Krishnan-268x300.jpg?fit=268%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/93257"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=93257"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/93257\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/93258"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=93257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=93257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=93257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}