# Measures to Cool the Property Market

- **Source:** Ministry of National Development
- **Published:** 2021-12-15T15:20:00.000Z
- **Author:** Ministry of National Development
- **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/measures-to-cool-the-property-market
- **Topics:** HDB & Public Housing, Private Residential, Government & Policy

## Featured rationale

The measures may moderate investment demand and borrowing capacity, slowing price momentum and influencing buyers to reassess budgets, ownership structures and purchase timing.

## AI summary

From 16 December 2021, Singapore raised ABSD rates, reduced the TDSR threshold from 60% to 55%, and tightened HDB-loan LTV from 90% to 85%.

## Original article

The Government announced today a package of measures to cool the private residential and HDB resale markets. With effect from 16 December 2021, Additional Buyer’s Stamp Duty (ABSD) rates will be raised, and the Total Debt Servicing Ratio (TDSR) threshold will be tightened. The Government will also tighten the LTV limit for loans from HDB from 90% to 85%. In addition, the Government will increase public and private housing supply to cater to demand.

The Government has been closely monitoring the property market for several quarters. The private residential and HDB resale markets have been buoyant, despite the economic impact of COVID-19. Private housing prices have risen by about 9% since 1Q2020. HDB resale flat prices are also recovering sharply after a six-year decline,1 rising about 15% since 1Q 2020. Even though House Price-to-Income ratios remain below their historical averages, there is clear upward momentum. Amid the low interest rate environment, transaction volumes in the private housing market and HDB resale market have also been high despite the COVID-19 situation.

If left unchecked, prices could run ahead of economic fundamentals, and raise the risk of a destabilising correction later on. Borrowers would also be vulnerable to a possible rise in interest rates in the coming years.

1 The HDB Resale Price Index declined by 9.9% over 5 years between 2014-2018 and remained flat in 2019.

The Government has therefore decided to implement a set of measures to cool the private and public housing markets, to promote continued housing affordability. The private residential measures are calibrated to dampen broad-based demand, especially from those purchasing property for investment rather than owner-occupation. Measures to tighten financing conditions for both public and private housing will encourage greater financial prudence. The Government will also be ramping up the supply for both private and public housing.

Measures Applicable to All Residential Property

Raising Additional Buyer’s Stamp Duty (ABSD) Rates

The current ABSD rates for Singapore Citizens (SCs) and Singapore Permanent Residents (SPRs) purchasing their first residential property will remain at 0% and 5% respectively.

The Government will raise the ABSD rates as follows:

a. Raise ABSD rate to 17% for SCs purchasing their 2nd residential property;

b. Raise ABSD rate to 25% for SCs purchasing their 3rd and subsequent residential property, and SPRs purchasing their 2nd residential property

c. Raise ABSD rate to 30% for SPRs purchasing their 3rd and subsequent residential property and foreigners purchasing any residential property,

d. Raise ABSD rate to 35% for entities purchasing any residential property; and

e. Raise ABSD rate to 35% for developers purchasing any residential property. This 35% may be remitted under the Stamp Duties (Non-licensed Housing Developers) (Remission for ABSD) Rules and the Stamp Duties (Housing Developers) (Remission of ABSD) Rules, subject to conditions. In addition to this 35% ABSD rate, the non-remittable component remains unchanged at 5%.

Table 1 summarises the adjustments to the ABSD rates.

Table 1: Adjustments to ABSD Rates for Residential Property

2 As entities, Housing Developers will also be subject to the ABSD rate for entities. Housing Developers may apply for remission of this ABSD, subject to conditions.

3 Housing Developers refer to entities in the business of housing development (i.e. construction and sale of housing units) with respect to the subject property acquired.

4 This 5% ABSD for Housing Developers is in addition to the ABSD for all entities. This 5% will not be remitted, and is to be paid upfront upon purchase of residential property.

For purchases made jointly by two or more parties of different profiles, the highest applicable ABSD rate will apply.

Married couples with at least one SC spouse, who jointly purchase a second residential property, can continue to apply for a refund of ABSD, subject to conditions. These conditions include selling their first residential property within 6 months after (a) the date of purchase of the second residential property if this is a completed property, or (b) the issue date of the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) of the second residential property, whichever is earlier, if the second property is not completed at the time of purchase.

The ABSD currently does not affect those buying an HDB flat or EC unit from property developers with an upfront remission, if any of the joint acquirers/purchasers is a SC. There will be no change to this.

The revised ABSD rates will apply to cases where the Option to Purchase (OTP) is granted on or after 16 December 2021. There will be a transitional provision where ABSD rates before 16 December 2021 will apply for cases that meet all of the following conditions:

a. The OTP is granted by sellers to potential buyers on or before 15 December 2021;

b. This OTP is exercised on or before 5 January 2022, or within the OTP validity period, whichever is earlier; and

c. This OTP has not been varied on or after 16 December 2021.

Correspondingly, the Additional Conveyance Duties for buyers of equity interest property-holding entities5 will be raised from up to 34% to up to 44% (increase by 10%-points).

5 A property-holding entity is an entity which has at least 50% (i.e. asset ratio) of its total tangible assets comprising prescribed immovable properties in Singapore. Refer to IRAS’ website for details on prescribed immovable properties.

Tightening of Total Debt Servicing Ratio Threshold (TDSR)

The TDSR threshold6 will be tightened by 5%-points from 60% to 55%. The revised TDSR threshold will apply to loans for the purchase of properties where the OTP is granted on or after 16 December 2021, and for mortgage equity withdrawal loan applications made on or after 16 December 2021. Borrowers with existing property loans granted before 16 December 2021 will not be affected by the revised TDSR threshold when refinancing their loans.7

6 TDSR is applicable to both residential and non-residential property loans granted by financial institutions to individuals, sole proprietors and vehicles with no substantive genuine commercial business, set up for the purchase of properties held by individuals.

7 TDSR is currently waived for borrowers who refinance their owner-occupied housing loans. For borrowers refinancing their existing investment property loans, MAS has provided for a temporary TDSR waiver for borrowers affected by COVID-19. Otherwise, the previous 60% TDSR will apply.

Measure Specific to Public Housing

Tightening of Loan-to-Value (LTV) Limit

The LTV limit for HDB housing loans will be tightened by 5%-points from 90% to 85%. The revised LTV limit does not apply to loans granted by financial institutions, for which the LTV limit remains at 75%.

The LTV limit of 85% will apply to new flat applications for sales exercises launched after 16 December 2021, and complete resale applications8 which are received by HDB from 16 December 2021 onwards.

8 A complete application is one where HDB has received both sellers’ and buyers’ portions of the resale application.

Increasing housing supply

The Government will also increase the supply of both public and private housing to meet housing demand. Details will be provided tomorrow.

The measures undertaken in this cooling package will help promote a stable and sustainable property market. The Government remains vigilant to the risk of a sustained increase in prices relative to income trends.

Issued by: Ministry of Finance, Ministry of National Development and Monetary Authority of Singapore

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## Chinese translation

> Translation model: grok_cli

### 为房地产市场降温的措施

政府今日公布一套措施，为私人住宅及组屋转售市场降温。自2021年12月16日起，额外买方印花税（ABSD）税率将上调，总偿债率（TDSR）门槛将收紧。政府亦将把建屋发展局（HDB）贷款的贷款与估值比率（LTV）上限由90%收紧至85%。此外，政府将增加公共及私人住宅供应，以应对需求。

政府过去数个季度一直密切关注房地产市场。尽管受到新冠疫情的经济影响，私人住宅及组屋转售市场仍保持活跃。自2020年第一季以来，私人住宅价格已上涨约9%。组屋转售价格在经历六年下跌后亦急剧回升，1自2020年第一季以来上涨约15%。尽管房价收入比仍低于历史平均水平，但上升势头明确。在低利率环境下，尽管面对新冠疫情，私人住宅市场及组屋转售市场的成交量亦居高不下。

若放任不管，价格可能超前于经济基本面，并提高日后出现不稳定调整的风险。借款人亦将面对未来数年可能升息的脆弱性。

1 组屋转售价格指数在2014至2018年间的5年内下跌9.9%，并于2019年持平。

因此，政府决定落实一套措施，为私人及公共住房市场降温，以持续促进住房可负担性。私人住宅措施经校准，旨在抑制广泛需求，尤其是以投资而非自住为目的的购房需求。收紧公共及私人住房融资条件的措施，将鼓励更审慎的财务安排。政府亦将增加私人及公共住房供应。

适用于所有住宅物业的措施

上调额外买方印花税（ABSD）税率

新加坡公民（SC）及新加坡永久居民（SPR）购买首套住宅物业的现行ABSD税率将分别维持在0%及5%。

政府将按以下方式上调ABSD税率：

a. 将新加坡公民购买第二套住宅物业的ABSD税率上调至17%；

b. 将新加坡公民购买第三套及后续住宅物业、以及新加坡永久居民购买第二套住宅物业的ABSD税率上调至25%；

c. 将新加坡永久居民购买第三套及后续住宅物业、以及外国人购买任何住宅物业的ABSD税率上调至30%；

d. 将实体购买任何住宅物业的ABSD税率上调至35%；以及

e. 将发展商购买任何住宅物业的ABSD税率上调至35%。该35%可根据《印花税（非持牌房屋发展商）（ABSD减免）规则》及《印花税（房屋发展商）（ABSD减免）规则》在符合条件的情况下获减免。除此35% ABSD税率外，不可减免部分维持不变，为5%。

表1汇总了ABSD税率的调整。

表1：住宅物业ABSD税率调整

2 作为实体，房屋发展商亦须按实体适用的ABSD税率缴纳。房屋发展商可在符合条件的情况下申请减免该ABSD。

3 房屋发展商指从事房屋发展业务（即就所购标的物业进行住房单位的建造与销售）的实体。

4 该5%房屋发展商ABSD是在所有实体适用的ABSD之外另行征收。该5%不可减免，并须在购买住宅物业时预缴。

若由两名或以上不同身份的当事人联名购买，将适用最高的ABSD税率。

至少有一方为新加坡公民配偶的已婚夫妇，联名购买第二套住宅物业时，可继续申请退还ABSD，惟须符合条件。这些条件包括在以下时点后6个月内售出其首套住宅物业：（a）若第二套为已落成物业，则为购买第二套住宅物业之日；或（b）若购买时第二套物业尚未落成，则为第二套住宅物业的临时入伙准证（TOP）或法定竣工证书（CSC）签发日期（以较早者为准）。

目前，若联名收购人／买方中任何一方为新加坡公民，向发展商购买组屋或执行共管公寓（EC）单位且享有预先减免者，不受ABSD影响。此项安排将维持不变。

经修订的ABSD税率将适用于选择购买权（OTP）于2021年12月16日或之后授予的个案。将设过渡安排：凡符合以下全部条件的个案，适用2021年12月16日前的ABSD税率：

a. 卖方于2021年12月15日或之前向潜在买方授予OTP；

b. 该OTP于2022年1月5日或之前行使，或在OTP有效期内行使（以较早者为准）；以及

c. 该OTP在2021年12月16日或之后未经更改。

相应地，购买股权权益物业持有实体5的买方额外转让税，将由最高34%上调至最高44%（上调10个百分点）。

5 物业持有实体指其有形资产总额中至少50%（即资产比率）由新加坡订明不动产组成的实体。有关订明不动产的详情，请参阅国内税务局（IRAS）网站。

收紧总偿债率（TDSR）门槛

TDSR门槛6将收紧5个百分点，由60%降至55%。经修订的TDSR门槛将适用于OTP于2021年12月16日或之后授予的购房贷款，以及于2021年12月16日或之后提出的按揭套现贷款申请。在2021年12月16日前获批现有物业贷款的借款人，在为贷款再融资时不受经修订TDSR门槛影响。7

6 TDSR适用于金融机构向个人、独资经营者，以及为持有由个人持有的物业而设立、且无实质真实商业业务的载体所发放的住宅及非住宅物业贷款。

7 目前，自住住房贷款再融资的借款人可获豁免TDSR。对于为其现有投资物业贷款再融资的借款人，金融管理局（MAS）已为受新冠疫情影响的借款人提供临时TDSR豁免。除此以外，将适用原先的60% TDSR。

专适用于公共住房的措施

收紧贷款与估值比率（LTV）上限

HDB住房贷款的LTV上限将收紧5个百分点，由90%降至85%。经修订的LTV上限不适用于金融机构发放的贷款，该等贷款的LTV上限仍为75%。

85%的LTV上限将适用于2021年12月16日之后推出的销售活动中的新组屋申请，以及建屋发展局自2021年12月16日起收到的完整转售申请8。

8 完整申请指建屋发展局已同时收到卖方及买方部分的转售申请。

增加住房供应

政府亦将增加公共及私人住房供应，以满足住房需求。详情将于明日公布。

本轮降温配套措施将有助于促进稳定且可持续的房地产市场。政府将继续警惕价格相对于收入趋势持续上升的风险。

发布机构：财政部、国家发展部及新加坡金融管理局

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