Friday, January 11, 2013

Govt announces new property cooling measures

Updated 07:01 PM Jan 11, 2013

SINGAPORE - The Government today announced further measures to cool the private and public housing markets.

Among the measures, which will take effect tomorrow, include tighter eligibility for loans to buy HDB flats; Permanent Residents (PRs) who own a HDB flat will be disallowed from subletting their whole flat, and they must sell their HDB flat within six months of purchasing a private residential property in Singapore.

The changes are meant to further moderate the demand for HDB flats, instill greater financial prudence among buyers, and require owner occupation by PR buyers, said the Ministry of Finance, Ministry of National Development, Monetary Authority of Singapore and Ministry of Trade & Industry in a joint statement.

For Executive Condominiums (ECs), the maximum strata floor area of new EC units will be capped at 160 square metres, while sales of new dual-key EC units will be restricted to multi-generational families only.

Private enclosed spaces and private roof terraces will be treated as gross floor area (GFA), which will be counted as part of the "bonus" GFA of a residential development and subject to payment of charges.

There will also be Additional Buyer's Stamp Duty (ABSD) rates imposed on PRs buying their first residential property and on Singaporeans purchasing their second residential property. These measures are temporary, and will be reviewed in the future depending on market conditions, said the joint statement.

The Government is also introducing Seller's Stamp Duty (SSD) on industrial property to discourage short-term speculative activity which could distort the underlying prices of industrial properties and raise costs for businesses.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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