Singapore: Government announced today 5 Jul 2018 on adjustment to Additional Buyer Stamp Duty and Loan to Limit Value in an attempt to cool the property market after prices rose sharply by 9.1% over the past year. Prices has decline since 2013 when government first implemented Additional Buyer Stamp Duty in 2013 on top of the normal buyer stamp duty and only started reverse in trend in end of 2017 as property picked up in term of property prices and volumes.

The sharp rise in property prices if left unattended could risk destabilising and run ahead of economic fundamentals with strong supply of housing supply and rising interest rate.

Singapore Citizen (SC) and Singapore Permanent Resident (SPR) buying first residential property will not be affected. Other individuals owning 2 or more properties and entities will incur an additional 5% and 10% for entities respectively. There will also be an additional 5% for property developers buying residential properties for housing development.

For property purchase by joint partnership with different profiles, the ABSD rate will be based on the highest applicable ABSD Rate.

In the event of ABSD remission, married couple with at least one Singaporean can appeal for ABSD refund when they sold off their first residential property, normally within 6 months after the project TOP or date of purchase of the 2nd property, whichever that is earlier.

In the event of transitional provision cases with option granted before 5 Jul 2018, the old ABSD rate remains and the option have to be exercised before 26 July 2018 or to validity period of the OTP date, whichever earlier apply.

 

Revised ABSD Rate for Residential Property

Buyer ProfileABSD Rate
(8 Dec 2011 to 11 Jan 2013)
ABD Rate
(12 Jan 2013 to 5 Jul 2018)
ABSD Rate
(After 6 July 2018)
Singapore Citizen (SC) - 1st Residential PropertyN.A.N.A.N.A
Singapore Citizen (SC) - 2nd Residential PropertyN.A.7%12%
Singapore Citizen (SC) - 3rd Residential Property3%10%15%
Singapore Permanent Resident (SPR) - 1st Residential PropertyN.A.5%5%
Singapore Permanent Resident (SPR) - 2nd Residential Property or More3%10%15%
Foreigners (FR) - Any Residential Property10%15%20%
Entities - Any Residential Property10%15%25%

 

Revised LTV Limit of Housing Grants

Loan to Value (LTV) is tightened by financial institutions for housing loans by 5%. This is only applicable to private property and does not apply to HDB.

This revised tightening will be applicable for options that are dated on or after 6 July 2018.

Loan to Value (LTV) limits of mortgage equity withdrawal loans (MWLs) will be revise as follows:

  • Loan of up to 75% for borrower without existing outstanding residential property loan
  • Loan of up to 45% for borrower with existing outstanding residential property loan
11st Housing Loan2nd Housing Loan3rd Housing Loan
LTV LimitCurrent Rules
- 80% or
- 60% (when extend past age 65 or Loan tenure more than 30 years)
Current Rules
- 50% or
- 30% (when extend past age 65 or Loan tenure more than 30 years)
Current Rules
- 40% or
- 20% (when extend past age 65 or Loan tenure more than 30 years)
Revised Rules Rules
- 75% or
- 55% (when extend past age 65 or Loan tenure more than 30 years)
Revised Rules Rules
- 45% or
- 25% (when extend past age 65 or Loan tenure more than 30 years)
Revised Rules Rules
- 35% or
- 15% (when extend past age 65 or Loan tenure more than 30 years)
Minimum Cash Payment- 5%
- 10% (when age past 65 or when loan tenure more than 30 years)
25%25%
Non Individual Borrowers (e.g entity) LTV Limit
Existing Rule
- 20%
Existing Rule
- 20%
Existing Rule
- 20%
Revised Rule
- 15%
Revised Rule
- 15%
Revised Rule
- 15%

Loan to Value Summary Table