They gave various reasons for this, such as foreigners opting to rent instead of owning a home, and flat owners renting before upgrading to a private property to avoid paying the duty.
This was the joint statement from the Ministry of National Development , Ministry of Finance and Monetary Authority of Singapore when they released the news. As for people looking to buy property, the analysts said that the latest cooling measures would not affect the sale of mass market condominiums.
Historically, prices have never fallen after an increase — only when the Total Debt Servicing Ratio was adjusted, she observed. Last revised in September 2022, the Total Debt Servicing Ratio stipulates that all debt obligations, including housing loans, cannot exceed 55 per cent of a person’s income.
“As investment demand is likely to be altered by , there could be fewer private homes for rent in the longer term. Another analyst agreed, saying that unlike investors who may adopt a wait-and-see approach, buyers who are primarily buying property for their own occupation may still be active in the mass market, especially first-time buyers.
Or, some of these “upgraders” may delay plans, which may lead to a lower resale volume of HDB flats “for a few months”, he added.Residential property prices here have soared in the past few years. Here is a look at what the authorities have done to cool the market.Seller’s Stamp Duty is imposed on properties held for four years or less — up from three years.
For a borrower with one or more outstanding housing loans, the limit is 40 per cent. For a borrower without any outstanding housing loan, it is 60 per cent. A cooling measure kicks in for executive condominiums, such as capping the strata floor area at 160 sqm. These are public-private housing hybrids developed and sold by private developers but are subsidised by the Government.The Total Debt Servicing Ratio is introduced to encourage financial prudence among borrowers.