Singapore government has decided to raise the additional buyer's stamp duty (ABSD) and tighten loan-to-value (LTV) limits on residential property purchases for Singapore citizens, permanent residents, and foreigners, Thursday (July 5, 2018).
The ASBD rates will be raised by 5 percentage points for all individuals and 10 percentage points for entities. An additional ABSD of 5 per cent that is non-remittable under the Remission Rules will also be introduced for developers buying residential properties for development.
However, full ABSD remission will continue to be provided for joint purchases of the first residential property by married couples with at least one spouse who is a Singapore citizen, they added.
Married couples with at least one Singapore citizen spouse who jointly purchase a second home together can continue to apply for an ABSD refund, as long as they sell their first home within six months after the date of purchase of the second property, or by the issue date of the Temporary Occupation Permit or Certificate of Statutory Completion of the second property - whichever is earlier.
The new rates are effective Jul 6, but there will be a transitional provision for cases where an Option to Purchase (OTP) has been granted by sellers to potential buyers on or before Jul 5.
The surprise move came hot on the heels of the release of second-quarter flash estimates on Monday, which saw private home prices rapidly regaining the ground they lost since values started slipping five years ago.
source:
- https://www.todayonline.com/singapore/government-introduces-new-round-cooling-measures
- https://www.businesstimes.com.sg/real-estate/govt-raises-absd-tightens-ltv-limits-to-cool-singapore-property-market
- https://www.channelnewsasia.com/news/business/singapore-property-cooling-measures-higher-absd-rates-loan-limit-10502710