{"id":46723,"date":"2021-12-16T01:39:14","date_gmt":"2021-12-15T17:39:14","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=46723"},"modified":"2022-09-12T17:35:31","modified_gmt":"2022-09-12T09:35:31","slug":"cooling-measures-announced-absd-tdsr-ltv-16-december-2021","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/cooling-measures-announced-absd-tdsr-ltv-16-december-2021\/","title":{"rendered":"Cooling measures announced – ABSD, TDSR and LTV – effective from midnight 16 December 2021"},"content":{"rendered":"
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UPDATE:<\/strong><\/em> 99.co’s affordability calculators<\/a> are updated in accordance to Dec 2021 Cooling Measures<\/a>!<\/p>\n

The government has announced a package of cooling measures for private residential and HDB resale markets effective from midnight 16 December 2021<\/strong>. The announcement follows the government’s close monitoring of the property market for several quarters. The private residential and HDB resale markets have been buoyant despite the economic impact of COVID-19<\/a>.<\/p>\n

In its release<\/a>, it noted that private housing prices have risen by about 9% since Q1 2020, while HDB resale prices have recovered sharply after a 6-year decline, rising 15% over the same period. The concern raised is that even though House Price-to-Income ratios remain below historical averages, the upward momentum in terms of home prices is worrying.<\/p>\n

If left unchecked, prices could run ahead of economic fundamentals and run the risk of a destabilising correction.<\/p>\n

The signs for this cooling measure seem to have been indicative, albeit subtle.<\/p>\n

Just ten days ago, MAS warns<\/a> Singapore households on rising mortgage debt ahead of potential interest rate hikes. The Monetary Authority of Singapore even advised homebuyers to exercise prudence<\/a>, as household debt in Singapore has grown over the past year, driven mainly by housing loans.<\/p>\n

Here then is the list of new measures:<\/p>\n

Raising Additional Buyer’s Stamp Duty (ABSD) Rates for 2nd and subsequent properties for SCs, PRs, and 1st for foreigners, entities and developers<\/h2>\n

First, there are no ABSD<\/a> changes for Singapore Citizens and Singapore PRs buying their very first residential property, which remains at 0% for SCs and 5% for PRs. Phew…<\/em><\/p>\n

But if you’re in the market to buy a 2nd or subsequent property from 16 December 2021, or you’re jointly buying a property with a partner who isn’t a Singapore Citizen, things may be different.<\/p>\n