Singapore Property regulation 30th Aug 2010
September 27, 2010 by property
Filed under Regulation, Singapore property investor - buyer
Singapore Property Regulation
With effect from 30th Aug 2010. The following measures are implemented. The moves are what the Singapore government claims are required to maintain a stable and sustainable property market.
Seller Stamp Duty in Singapore
- Seller stamp duty is increased from the current 1 year to 3 years of holding period for residential properties bought on or after 30th Aug 2010.
- The amount payable is 1% on the first $180,000, 2% on the second $180,000 and 3% thereafter of the property price.
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Cash Down-payment for Property Buyers
For property buyers with one or more outstanding housing loans at the time of buying another property, the minimum cash payment is increased from 5% to 10% of the valuation of the property.
Decrease in the Loan to Valuation limit for housing loans
If you already have 1 or more existing home loan, all banks and financial institutions regulated by MAS can only lend up to 70% of the valuation amount if property buyers have one or more outstanding housing loans at the time of buying another property.
The decrease in the loan to valuation limit for housing loans applies to the following properties: -
- Private residential properties
- Executive Condominiums
-
HUDC
-
HDB flats
- Design, Build and sell scheme (DBSS) flats
If this is your first residential property, the loan to valuation limit remains at 80%.
Seller stamp duty Calculation
Seller stamp duty is applied on a pro-rated basis. If the property is; -
- Sold within the first year of purchase – Full stamp duty is applicable
- Sold within the 2nd year of purchase, 2/3 of the stamp duty is applicable
- Sold within the 3rd year (i.e. > 2 year and < 3 years), 1/3 of the
- stamp duty is applicable
HDB houses – Seller stamp duty
Seller stamp duty will not affect the HDB flats as the minimum occupation period for HDB flat is at least 3 years.
For more details, please check with MAS or IRAS.
IRAS enquiries: 6351-3697 or 6351 3698
Downpayment for HUDC, HDB flats, Design, Build and sell Scheme (DBSS flats)
The cash downpayment increase from 5% to 10% of the valuation limit is only applicable to the those who has one or more outstanding housing loan at the time of applying for a housing loan for a new property purchase or those who are borrowing from financial institution regulated by MAS.: -
- Private residential properties.
- Executive Condominiums
- HUDC flats
- HDB flats
- Design, Build and sell scheme (DBSS) flats
What about first time HDB buyers?
For loans granted by HDB for HDB flats including those design, build and sell scheme (DBSS) flats. These will continue to enjoy a Loan to valuation limit of 90%.
HDB loans are offered to eligible first-time flat buyers and some second timers who are right-sizing their flats to meet their housing needs.
People who are eligible for HDB loans must first WIPE OUT all their CPF ordinary account balance before HDB loan is granted.
For those taking a second concessionary HDB loan, they must use the CPF refund and the 50% of the cash proceeds from the sale of their previous flat before they are granted a HDB loan.
Definitions of property regulation
Date of purchase is deemed as the date when buyer exercise the option or signs the sales and purchase agreement, whichever is earlier.
Read about the Commentary of this property buying regulation.
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