# Joint Press Release on Measures Relating to Residential Property - **Source:** Ministry of National Development - **Published:** 2017-03-10T04:00:00.000Z - **Author:** Ministry of National Development - **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/joint-press-release-on-measures-relating-to-residential-property - **Topics:** Private Residential, Government & Policy, Transactions & Deals ## Featured rationale The calibrated easing could increase resale flexibility and transaction activity, while retained ABSD and LTV limits continue to restrain speculative demand and household leverage. ## AI summary From 11 March 2017, the Seller’s Stamp Duty holding period was shortened from four to three years and rates reduced to 4%–12%. ## Original article The Government has continued to review conditions in the residential property market. It has determined that the current set of property market measures remain necessary to promote a sustainable residential property market and financial prudence among households. However, we will make calibrated adjustments to the Seller’s Stamp Duty (SSD) and Total Debt Servicing Ratio (TDSR) framework, with effect from 11 March 2017. Additional Buyer’s Stamp Duties (ABSD) and Loan to Value (LTV) Limits Transaction volumes in the private residential property market remain healthy. There is firm demand for private housing, in part because of current low interest rates and continued income growth. While the growth in outstanding housing loans has moderated, it is prudent for households to further build up their financial buffers to protect against future interest rate increases or any losses in income. The Government is therefore retaining the current ABSD rates and LTV limits. Seller’s Stamp Duties (SSD) The SSD is currently payable by those who sell a residential property within 4 years of purchase, at rates of between 4% and 16% of the property’s value1. The number of property sales within the 4-year window has fallen significantly over the years since this measure was introduced. The Government will therefore revise the SSD as follows: a) Impose SSD on holding periods of up to 3 years, down from the current 4 years; and b) Lower the SSD rate by four percentage points for each tier. The new SSD rates will range from 4% (for properties sold in the third year) to 12% (for those sold within the first year). The new SSD rates will apply to all residential property purchased on and after 11 March 2017. Details of the revised SSD rates are in the Annex. Total Debt Servicing Ratio (TDSR) The TDSR framework aims to encourage prudent borrowing by households and strengthen credit underwriting standards by financial institutions. Under this framework, property loans extended by a financial institution should not exceed a TDSR threshold of 60%. However, some borrowers have given feedback that the TDSR framework has limited their flexibility to monetise their properties in their retirement years, i.e. to borrow against the value of their properties to obtain additional cash. MAS will therefore relax the rules to meet such needs. We will no longer apply the TDSR framework to mortgage equity withdrawal loans with LTV ratios of 50% and below. Stamp Duties on Transfer of Equity Interest in Entities whose Primary Tangible Assets Are Residential Properties in Singapore The 2nd Minister for Finance will be introducing legislative changes in Parliament today aimed at treating transactions in residential properties on the same basis irrespective of whether the properties are transacted directly or through a transfer of equity interest in an entity holding residential properties. The intent is not to impact the ordinary buying and selling of shares in such entities by retail investors, where the entities are listed on the Singapore Stock Exchange. However, significant owners of residential property-holding entities or PHEs2 will be subject to the usual stamp duties when they transfer equity interest in such entities, similar to what would happen if they were to buy or sell the properties directly. The Stamp Duties (Amendment) Bill will be tabled in Parliament today to give effect to this policy intent. Further details of this measure are in the Bill. 1 Refers to the property’s selling price or market value. 2 An entity is defined as a Property Holding Entity (PHE) under two possible circumstances. a) The first category of entities holds residential properties directly. To establish if such an entity is a PHE, a significant asset test will be applied. An entity can be a PHE if 50% or more of its total tangible assets is residential properties in Singapore. We will call this a Type 1 PHE. b) There is also a second category of entities that have indirect holdings of residential property through Type 1 PHEs in which it has at least 50% equity interest. For such an entity, it will be considered as a PHE if it meets two criteria: i. First, it beneficially owns at least 50% equity interest in a Type 1 PHE, and ii. Second, it meets the significant asset test as mentioned above – in other words, the total value of the residential property it owns indirectly through Type 1 PHEs in which it owns at least 50% equity interest as well as the value of the property which it may own directly comprises 50% or more of its total tangible assets. Its total tangible assets comprise the total tangible assets it owns directly, as well as through entities (whether PHEs or not) in which it owns at least 50% equity interest. Issued by the Ministry of National Development, Ministry of Finance and Monetary Authority of Singapore ## Chinese translation > Translation model: grok_cli ### 关于住宅物业相关措施的联合新闻稿 政府持续检讨住宅房地产市场状况。政府认定，现行房地产市场措施仍有必要，以促进可持续的住宅房地产市场，并鼓励家庭审慎理财。不过，政府将对卖方印花税（SSD）及总偿债比率（TDSR）框架作出有针对性的调整，自2017年3月11日起生效。 额外买方印花税（ABSD）与贷款与估值比率（LTV）上限 私人住宅房地产市场的交易量仍然健康。私人住屋需求稳健，部分原因是目前利率偏低以及收入持续增长。尽管未偿住房贷款增速已有所放缓，家庭进一步增强财务缓冲以应对未来利率上升或收入损失仍属审慎之举。因此，政府维持现行额外买方印花税税率及贷款与估值比率上限。 卖方印花税（SSD） 目前，凡在购入后4年内出售住宅物业者，须按物业价值1的4%至16%缴付卖方印花税。自该措施推出以来，在4年窗口期内的物业出售数量已显著下降。因此，政府将按以下方式修订卖方印花税： a）将须缴付卖方印花税的持有期由现行的4年缩短至最多3年；以及 b）每一档卖方印花税税率下调四个百分点。新的卖方印花税税率将介乎4%（于第三年出售的物业）至12%（于第一年内出售的物业）。 新的卖方印花税税率适用于所有在2017年3月11日及之后购入的住宅物业。经修订的卖方印花税税率详情载于附件。 总偿债比率（TDSR） 总偿债比率框架旨在鼓励家庭审慎借贷，并加强金融机构的信贷审批标准。在该框架下，金融机构发放的物业贷款不应超过60%的总偿债比率门槛。 不过，部分借款人反馈，总偿债比率框架限制了他们在退休后将物业套现的灵活性，即以物业价值作抵押获取额外现金。因此，金融管理局将放宽相关规则以满足此类需求。我们不再对贷款与估值比率为50%及以下的房屋净值套现贷款适用总偿债比率框架。 对主要有形资产为新加坡住宅物业的实体转让股权权益所征收的印花税 第二财政部长今日将在国会提出立法修订，旨在使住宅物业交易——无论是直接交易物业，还是通过转让持有住宅物业的实体之股权权益——在同等基础上处理。意图并非影响普通零售投资者买卖在新加坡证券交易所上市的此类实体股份。不过，住宅物业控股实体（PHE）2的重大拥有人在转让此类实体的股权权益时，将须缴付通常的印花税，与他们直接买卖物业的情况类似。 《印花税（修订）法案》将于今日提交国会，以落实此政策意图。该措施的更多详情载于法案。 1 指物业的售价或市值。 2 实体在两种可能情况下可被界定为物业控股实体（PHE）。 a）第一类实体直接持有住宅物业。为确定该实体是否为PHE，将适用重大资产测试。若实体总有形资产的50%或以上为新加坡住宅物业，则该实体可为PHE。我们称之为第一类PHE。 b）另有第二类实体，通过其至少持有50%股权权益的第一类PHE间接持有住宅物业。对此类实体，若符合以下两项标准，则视为PHE： i. 首先，其实益拥有第一类PHE至少50%的股权权益；以及 ii. 其次，其符合上述重大资产测试——换言之，其通过至少持有50%股权权益的第一类PHE间接拥有的住宅物业总值，加上其可能直接拥有的物业价值，占其总有形资产的50%或以上。其总有形资产包括其直接拥有的总有形资产，以及通过其至少持有50%股权权益的实体（无论是否为PHE）所拥有的总有形资产。 由国家发展部、财政部及新加坡金融管理局发布