Not for the first time you are hearing, the government has once again imposed a new cooling measures on Singapore property in the bid to control speculation for property in Singapore.
The following measures will take effect on 12 January 2013:
a) Additional Buyer’s Stamp Duty (ABSD) rates will be:
i) Raised between five and seven percentage points across the board.
ii) Imposed on Permanent Residents (PRs) purchasing their first residential property and on Singaporeans purchasing their second residential property.
b) Loan-to-Value limits on housing loans granted by financial institutions1 will be tightened for individuals who already have at least one outstanding loan, as well as to non-individuals such as companies.
c) Besides tighter Loan-to-Value limits, the minimum cash down payment for individuals applying for a second or subsequent housing loan will also be raised from 10% to 25%.
The measures listed above will not impact most Singaporeans buying their first home.
I think this news will come as a surprise to many especially with the pace coming in from the last cooling measures we had just recently. This news in my opinion will be very bad for property developers – Capitaland, Keppeland, CDL and Wing Tai as not only sales have been dropping in recent months, with this additional news they are going to once again feel the pinch even more.
And of course, for myself who are still awaiting for the PR application results this month, this news do come as a disappointment to me as the new ABSD will affect me on purchasing a property here 🙁