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2018 ABSD Hike

2018.07.06 equitysolutions

 

Blogs

New Property Market

On 5th July, The Monetary Authority of Singapore (MAS) took immediate steps to cool the market after concerns expressed since last year had failed to cool the property and land prices. Both property buyers and developers are surprised by this new ruling. With the substantial increase in new home buyers and investors since beginning of the 2018, MAS decided its time to take action. With the increase in buyer stamp duty and decreasing the home loan borrowing capacity, the property market should cool down for sometime. 

For property buyers, the difficulty in getting the full home loan at 80% of purchase price has been one of the main concern before getting a second unit. Applying for housing loan is no longer a easy task since introduction of TDSR and MSR in 2013. The introduction of the new ruling is going to be a great hurdle to cross as the maximum housing loan amount has been reduced to 75% of purchase price.

6th July New Buyers Ruling:
1) From 2nd property onward, Singapore Citizens will have to pay 12% buyer stamp duty instead of 7% (additional 5% stamp duty)
2) From 2nd property onward, Singapore Permanent Residents will have to pay 15% buyer stamp duty instead of 10% (additional 5% stamp duty)
3) From 1st property onward, Foreigners will have to pay 20% buyer stamp duty instead of 15% (additional 5% stamp duty)
4) From 1st property onward, Entities will have to pay 20% buyer stamp duty instead of 15% (additional 5% stamp duty)
5) From 1st property onward, Developers will have to pay 25% buyer stamp duty instead of 15% (additional 10% stamp duty)

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