Property Investor Regulation in Singapore

Singapore Property Buyer regulation 30th Aug 2010


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.


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.

By Property Buyer Mortgage Consultants
Tel: 6100 – 0608
SMS: 9782 – 8606
Email: loans@propertyBUYER.com.sg