Singapore Tightens Property Market Rules
05 Julio 2018 - 10:50PM
RTTF2
Singapore tightened its property market rules as home prices
increased notably over a year on strong demand and housing
transactions.
The government raised the Additional Buyer's Stamp Duty, or
ABSD, on purchase of residential property and lifted the
loan-to-value limits, according to a joint statement published by
the Ministry of Finance, the Ministry of National Development and
the Monetary Authority of Singapore.
Nonetheless, the current ABSD rates for Singapore citizens and
Singapore permanent residents purchasing their first residential
property will be retained at 0 percent and 5 percent,
respectively.
The ABSD rate for foreign buyers was lifted to 20 percent from
15 percent. At the same time, entities buying residential
properties for development have to pay 25 percent ABSD instead of
15 percent.
LTV limits will be tightened by 5 percentage-points for all
housing loans granted by financial institutions.
The government said such measures are taken to cool the property
market and keep price increases in line with economic
fundamentals.
The sharp increase in prices, if left unchecked, could run ahead
of economic fundamentals and raise the risk of a destabilizing
correction later, especially with rising interest rates and the
strong pipeline of housing supply.
Data from the Urban Redevelopment Authority, released earlier
this week, showed that residential property prices continued to
rise in the second quarter. House prices increased 3.4 percent
sequentially, but slower than the 3.9 percent rise logged a quarter
ago.
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