Including 3 reasons why these are necessary.
According to CIMB, over the weekend, the government introduced its most comprehensive and toughest set of cooling measures to-date. These are aimed at curtailing physical prices which have shown signs of re-acceleration in recent months.
The new set of measures are formulated to
1) address over-exuberance in residential property investments,
2) cool foreign demand, and
3) instill greater financial prudence among buyers in the public housing segment.
Here's more from CIMB:
Cooling measures for the industrial property sector was also introduced for the first time. As a summary, the following measures will take effect from Jan 12 2013:
· ABSD rates will rise between 5-7% pts across the board;
· The new group of buyers affected by the ABSD will include PRs (first property) and Singapore Citizens (second property);
· LTV limits on housing loans will be lowered by 10-20% pts;
· Minimum cash down payments for housing loans will be raised by 15% pts;
· MSRs for public housing loans will rise by 5% pts;
· PRs will no longer be allowed to sublet entire flats and need to dispose their HDB flat within six months of purchasing a private property;
· Rules of maximum strata floor area, sales of dual-key units and minimum holding period before launch of projects in the EC segment will be revised;
· Private enclosed spaces (PES) and private roof terraces (RTs) will be treated as GFA computation; and
· Seller’s Stamp Duty (SSD) of 5-15% imposed on sale of industrial properties.
The minimum cash downpayment required from a buyer (individual) with one or more outstanding housing loans has been raised from 10% of the valuation limit (lower of current property value or purchase price) to 25%.
The minimum cash downpayment has not been changed for individual borrowers who do not have any outstanding housing loans currently.
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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