More property cooling measures announced

QX179R SG

SINGAPORE: The Singapore government on Friday announced a comprehensive package of measures to cool the residential property market.

The measures, which will take effect from January 12, include higher buyer's stamp duty, tighter loan-to-value limits, and higher minimum cash down payment for second and subsequent housing loans.

The measures are calibrated to be tighter on property ownership for investment, as well as on foreign buyers, the Ministry of National Development said.

To discourage over-borrowing, financing conditions for housing have also been tightened.

In addition, structural measures have been implemented to strengthen the policy intent of public housing and executive condominiums.

To further moderate the demand for HDB flats, the government has introduced several new measures.

It will tighten eligibility for loans to buy HDB flats.

Permanent residents who own a HDB flat will also not be allowed to sublet their entire flat.

Permanent residents who own a HDB flat must sell their flat within six months or purchasing a private residential property in Singapore.

Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam said in a statement: "The reality we face is that interest rates are extraordinarily low, globally and in Singapore, and continue to add fuel to our property market.

"We have to take this further round of measures now, to check recent market trends and avoid a more serious correction in prices further down the road."

- CNA/al

charlize SG

Got use meh?

Everyday report says prices of resale hdb flats and private condo still rising.

charlize SG

Huat ah.

Lazybumy SG

I think this do help though it might not bring down the price but it stop this from shooting up the roof. But if you view it this way, this might be another way to collect taxes for some of our “Long Term Investment”.

I like the part that PR must sell their HDB half year half getting a private property. But I think this should extend to those PR currently holding both HDB and private property, perhaps they can be given 1-2 yrs to sell off. And in the long term I think this should even extend to citizens. As if I recall the objective of HDB is to ensure people have a roof and not for making money. On top of that, I think those PR after leaving SG for more than 3 yrs and not coming should be ask to sell off their HDB as many is not staying in SG but just rent out the HDB to make money.

QX179R SG

Use of CPF funds, HDB loans tightened for public housing

SINGAPORE : As part of the cooling measures for the property market, limits have been set for granting of HDB loans and the use of CPF funds for the purchase of public housing with remaining leases of less than 60 years.

They will take effect on 1 July 2013.

If the remaining lease of the HDB flat is between 30 and 59 years, the use of CPF funds is allowed, except for buyers for whom the remaining lease cannot cover them to the age of at least 80.

The total CPF usage by the household will be the pro-rated Valuation Limit based on the ratio of the remaining lease when the youngest buyer who can use CPF turns 55 years old, to the lease at point of purchase.

If the remaining lease of the HDB flat is 29 years or less, use of CPF funds is not allowed.

As for HDB housing loan, if the remaining lease of the HDB flat is between 20 and 59 years, it will be allowed if remaining lease can cover the buyer to the age of at least 80, and loan tenure will be the shortest of 30 years or 65 years minus average age of buyers or balance lease at the point of purchase minus 20 years.

If the remaining lease of the HDB flat is below 20 years, HDB loan will not be granted.

- CNA/al

Medicated Oil SG

Correct me if I am wrong.

This cooling measure seems to be restrict local from buying so that foreigners can buy more with their money.

That is my impression.

SJS6638 SG

Restrict use of CPF for locals to buy HDB flats. wow, then pay and pay expect low fertility rate to go up and more singles now and in future.

Want people to marry and give birth but not doing relevant things to help instead impose more restrictions. This kind of shitty govt really cannot make it. The only thing they can make it is making money money and money.

Pui!

QX179R SG

Buyers rush to beat property cooling measures deadline

SINGAPORE: Snaking queues of buyers and real estate agents formed at the La Fiesta showroom at Seng Kang square on Friday evening.

Potential buyers wanted to snap up units before the new property cooling measures kick in on Saturday. These include raising the Additional Buyer's Stamp Duty (ABSD) by five to seven percentage points across the board.

The tax will be imposed on PRs buying their first property and Singaporeans buying their second property. Others did not want to be affected by the Loan-To-Value limits granted by the banks.

For example those getting a second loan will have their Loan-To-Value limits lowered to 50 or 30 per cent, depending on the loan tenure or borrower's age.

Crowds started forming at about 9pm after buyers heard the news on Channel NewsAsia.

Channel NewsAsia also understands that the launch of the condominium was brought forward by two weeks and is now based on a first come, first served basis.

-CNA/ac

QX179R SG

Private property prices may fall by 5 to 7%: analyst

SINGAPORE: Private property prices could go down by five to seven per cent, predicted property analyst Mohamed Ismail of PropNex, as new property cooling measures took effect on Saturday.

The measures, aimed at ensuring a sustainable and stable property market, include tightening property ownership for investment.

At La Fiesta condominium's sales site in Sengkang on Saturday, there was a steady stream of potential buyers. It was unlike the massive crowds that thronged the site after the announcement of the cooling measures on Friday night.

Saturday's visitors ranges from those who are not affected by the measures, such as first-time buyers, to serious upgraders willing to fork out more.

"Just bringing my parents here for sightseeing," said Tay Yeng Hwee, a visitor at the sales site. "Definitely won't have the money to buy with the additional measures."

With the new rules in place, Singaporeans buying their second property will have to pay seven per cent of the additional buyer's stamp duty.

Some buyers whom Channel NewsAsia spoke to are not deterred by the measures.

"We are keen to have another property because we are staying with our parents so (we are) thinking of getting another space," said Ray Chua, a potential buyer.

Originally slated to be launched next week, the developer had scrambled to get things ready for would-be buyers.

"Buyers are rushing down to get their choice units, which is good because you don't have to go through luck," said Aprene Loh, marketing associate at PropNex.

Channel NewsAsia understands that about 80 per cent of the launched units were snapped up in about four hours on Friday night.

There are about 800 units at La Fiesta, ranging from one- to five-bedroom units.

Tan Zhiyong, managing director at MCC Land (Singapore) said: "The measures this time round are mainly aimed at investors and foreign buyers, and it may have a bigger impact on the more high-end condominium units, because their buyers are mainly the investors and foreign buyers."

Mr Ismail said sales volume of private property is expected to fall by over 50 per cent, as buyers and investors choose to wait out and see the effects of the cooling measures.

- CNA/xq

charlize SG

Rich people who can afford the tax will still buy up properties.

Who wins? The people who collect the tax lor.

if they were serious, an outright ban on buying a second property would have been enforced.

kira.sg SG

They should have done this long ago. They like to create the problem then try to fix the problem later. Why they never thought of the problem in the first place?

charlize SG

First day living in sg?

DailyFreeGames.com SG

Rich people who can afford the tax will still buy up properties.

Who wins? The people who collect the tax lor.

if they were serious, an outright ban on buying a second property would have been enforced.

cannot outright ban lah, government earn more money from foreigners is actually good, because part of those money goes towards transport/medical/education for the locals... i say part of those money ah, i never say the entire money... because if PAP don't collect money from foreigners, then they will collect from locals ler... it's only what method they use to collect the money only... we locals like sugar cane, genna squeeze and go through the machine until no juice come out, then go through the machine a few more times for last few drips to drop into the sugar cane container...

SJS6638 SG

Are you very sure the money earned from foreigners goes to transport, medical and education????

DailyFreeGames.com SG

Are you very sure the money earned from foreigners goes to transport, medical and education????

i dun work in government sector, so i don't know lah. wait until i become mission impossible 007 then i go find the evidence for you.

TastyCaramel SG

Got use meh?

Everyday report says prices of resale hdb flats and private condo still rising.

this is very true

SJS6638 SG

i dun work in government sector, so i don't know lah. wait until i become mission impossible 007 then i go find the evidence for you.

You don' t know why are you posting such ????

Unless you are the big shot if not you will never find out

charlize SG

They announce so many cooling measures over the few years.

Prices still hit record high.

so i am sceptical they will work.

Lazybumy SG

They announce so many cooling measures over the few years.

Prices still hit record high.

so i am sceptical they will work.

Actually for me, I view HDB and private property as 2 different thing. The function for HDB is ensure every Singaporean (to some this can extend to PR) to have a roof over their head. Thus this more control, as you can see that I disagree with PR and even Singaporean to own both HDB and private property, that is why I think those current own both should be ask to sell one (within a timeframe). Those PR that leave Singapore for perhaps 3 yrs and rent out the HDB should be ask to sell off. There might be some using private property for investment, for this I am more open mind for the price to move (though I believe they will still be impact when there is a control for HDB)

SG.AdultsCircle.com SG

Aiyah, Singapore should just give 1 HDB flat to every singaporean lah, like this confirm everyone vote for PAP. Foreigners come must buy private or super HDB (a new category for them), so that they pay and pay and pay.