Source: Ministry of National Development (MND)
Extract from: PRESS RELEASE 13 January 2011


1. The Government announced today the following measures to maintain a stable and sustainable property market:

The measures will take effect on 14 January 2011.

2. The Government's objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals. Previous Government measures have to some extent moderated the market, but sentiments remain buoyant. Low interest rates plus excessive liquidity in the financial system, both in Singapore and globally, could cause prices to rise beyond sustainable levels based on economic fundamentals. Moreover, when interest rates eventually rise, it could strain purchasers who have overextended themselves financially. Therefore, the Government has decided to introduce additional targeted measures to cool the property market and encourage greater financial prudence among property purchasers.

Extending the Holding Period for Imposition of Seller's Stamp Duty (SSD) on Residential Properties from 3 Years to 4 Years & Raising the SSD Rates

3. Currently, for residential properties bought on or after 30 August 2010, SSD is imposed on the sale of such properties within three years of purchase. This followed the introduction of SSD for residential properties bought on or after 20 February 2010.

4. The SSD rates will be increased sharply from 14 January 2011, so as to provide a strong disincentive for investors looking to make short term gains. The holding period for imposition of SSD will also be extended from the current three years to four years. The impact of the SSD is especially significant as it is payable regardless whether the property is eventually sold at a gain or loss.

5. Specifically, for residential properties bought on or after 14 January 2011, the SSD rates to be levied on the full consideration will be increased to as follows: 6. The extended SSD will not affect HDB lessees as the required Minimum Occupation Period for HDB flats is 5 years.

7. IRAS will be releasing an updated e-tax guide on the circumstances under which SSD will apply and the procedures for paying SSD. The e-tax guide will be available at . Taxpayers with enquiries may call IRAS at 6351 3697 or 6351 3698.

Lower the Loan-To-Value (LTV) Limit to 50% on housing loans granted by financial institutions regulated by MAS for residential property purchasers who are not individuals

8. With effect from 14 January 2011, an LTV limit of 50% will apply to all residential property purchasers who are not individuals. This includes corporations, trusts and collective investment schemes, among others. The 50% LTV limit for housing loans will also apply to joint property purchases by an individual and a purchaser who is not an individual.

Lower the LTV limit on housing loans granted by financial institutions regulated by MAS from the current 70% to 60% for residential property purchasers who are individuals with one or more outstanding housing loans at the time of the new housing purchase

9. The LTV limit is lowered from 70% to 60% with effect from 14 January 2011 for borrowers who are individuals and have one or more outstanding housing loans (whether from HDB or a financial institution regulated by MAS) at the time of applying for a housing loan for the new property purchase.

10. However, borrowers who can show evidence that they have sold their existing properties will not be subject to the lower LTV limit when they buy a new property. Where the existing property is a private property, he can show a signed Sale & Purchase (S&P) agreement with the IRAS certificate showing that stamp duty has been paid on it. Where the existing property is a HDB flat, he can show HDB approval letter to sell the flat, that HDB will issue within 2 weeks of the First Appointment. These borrowers will still be able to borrow at an 80% LTV from financial institutions.

11. Borrowers without any outstanding housing loans continue to have a LTV cap of 80%.

12. These rules apply to housing loans granted by financial institutions for private residential properties, Executive Condominiums, HUDC flats and HDB flats (including DBSS flats).

13. Loans granted by HDB for HDB flats (including DBSS flats) will still have a LTV cap of 90%. HDB loans are offered to eligible Singapore citizens buying their first homes or right-sizing their flats to meet their housing needs. HDB loan applicants are required to utilise all the balance in their CPF Ordinary Account before HDB loans will be granted. Furthermore, those taking a second concessionary HDB loan must use the CPF refund and 50% of the cash proceeds from the sale of their previous flat before they are granted an HDB loan. This is to ensure that eligible buyers, especially first-time buyers, purchase public housing in a financially prudent manner.

Adequate Supply in the Pipeline

14. There is an ample supply of private residential units and buyers need not rush to buy now. The Government will continue to ensure an adequate supply of housing to meet demand.

15. The annual average take-up of private residential units between 2007 and 2010 is about 12,700 units. Thus far, the sites awarded under the Government Land Sales (GLS) Programme in 2010 will already yield about 13,300 units. In the GLS Programme for the first half of 2011, we will make available sites that can yield about 14,300 private housing units, of which about 8,100 units will be from sites on the Confirmed List.

16. As at 3Q2010, there were about 64,400 uncompleted units of private housing from projects in the pipeline. Of these, about 33,800 units were still unsold. This is equivalent to about 3 years of supply based on the average annual take-up over the last 4 years. The 33,800 unsold units in the pipeline comprised 3,300 units that had been launched for sale by developers and 11,400 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 19,100 units with planning approvals did not have the pre-requisite conditions for sale but these could be obtained quickly from the Government. The Government will also make available more supply in future GLS programmes. Buyers should bear in mind this supply in the pipeline when deciding whether to buy now.

17. The Government will continue to monitor the property market closely and take further steps to promote a stable and sustainable property market if necessary.

Issued by: Ministry of National Development (MND), Ministry of Finance (MoF) & Monetary Authority of Singapore (MAS).
Date: 13 January 2011

...Cross-reference check with 10 Mar 2017 Property Policy

...Cross-reference check with 28 Jun 2013 Property Policy

...Cross-reference check with 11 Jan 2013 Property Policy

...Cross-reference check with 5 Oct 2012 Property Policy

...Cross-reference check with 7 Dec 2011 Property Policy

...Cross-reference check with 30 Aug 2010 Property Policy

...Cross-reference check with 19 Feb 2010 Property Policy

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