Cooling Measure Policy

A Brief Summary of Cooling Measures

1. Additional Buyer's Stamp Duty (ABSD)


ABSD was first introduced on 7 December 2011 to cool the residential market and revised upwards on 12 Jan 2013 due to further acceleration in the escalation of residential property prices. The latest round of ABSD rate revision was introduced on 6 July 2018. 

The ABSD rate will depend on the buyer profile as at the date of purchase or acquisition of the residential unit. Hide

CitizenshipABSD Rate on Primary 
Home Purchase
ABSD Rate on Secondary 
Home Purchase
ABSD Rate on Tertiary & 
Subsequent Purchase
Singapore CitizensN/A7% revised to 12%10% revised to 15%
Permanent Residentsremains unchanged at 5%10% revised to 15%10% revised to 15%
Foreigners115% revised to 20%15% revised to 20%15% revised to 20%
Corporate Entities15% revised to 25%15% revised to 25%15% revised to 25%

Note: Citizens of the USA, Switzerland, Liechtenstein, Norway, Iceland will be treated the same as Singapore Citizens due to FTA agreement.


2. Sellers' Stamp Duty (SSD)


SSD is payable on all residential properties and residential lands that are bought on or after 20 Feb 2010 and sold within the holding period. 


Date of PurchaseYear 1Year 2Year 3Year 4
Between 20 Feb 2010 and 29 Aug 2010Same as basic
Buyer Stamp Duty
Between 30 Aug 2010 and 13 Jan 2011Same as basic
Buyer Stamp Duty
2/3 of basic
Buyer Stamp Duty
1/3 of basic
Buyer Stamp Duty
Between 14 Jan 2011 and 10 Mar 201716%12%8%4%
On and after 11 Mar 201712%8%4%N/A

3. Loan-to-Value (LTV) Ratio


Loan to value (LTV) is the housing loan quantum a bank or financial institution is willing to offer as a percentage of the property's valuation. 


Source: SRX Property


Policy Details

Effective DateMajor Cooling Measures that Affect Residential Property Market
06 July 20181. ABSD rates for Singaporeans and SPRs purchasing their first residential property will remain unchanged at 0% and 5% respectively; Rates for individuals buying their second and subsequent properties will be raised by 5%, while that for corporate entities will be increased by 10%; Non-remittable ABSD on residential developers 5%
2. LTV limits tightened by 5% for all housing loans granted by financial institutions.
11 March 20171. Seller Stamp Duty (SSD) reduced by 4% for each tier. With this change, SSD will only apply to properties sold within 3 years of purchase, down from 4 years previously.
2. TDSR will not apply to mortgage equity withdrawal loans with Loan-to-Value (LTV) ratio equal or below 50%.
3. Introduced Additional Conveyance Duties (ACD) for Property Holding Equity (PHE). ACD plugs a loophole which exempted companies from paying ABSD and BSD in the past. A PHE is a company whose primary (i.e., > 50%) tangible assets are Singapore residential properties.
9 December, 20131. Reduction of Cancellation Fees From 20% to 5% for Executive Condominiums.
2. Resale Levy for Second-Timer Applicants
  - Formerly second timers are not required to pay a levy. This is applicable to only new EC land sales which are launched on or after 9th December 2013.
3. Revision of Mortgage Loan Terms
  - The MSR cap will apply to EC purchases from 10th December 2013 onwards.
27 August, 20131. Singapore Permanent Resident Households need to wait three years from the date of obtaining SPR status, before they can buy a resale HDB flat.
2. Maximum tenure for HDB housing loans is reduced from 30 years to 25 years. The Mortgage Servicing Ratio (MSR) limit is reduced from 35% to 30% of the borrower's gross monthly income.
3. Maximum tenure of new housing loans and re-financing facilities granted by financial institutions for the purchase of HDB flats (including DBSS flats) is reduced from 35 years to 30 years. News loans with tenure exceeding 25 years and up to 30 years will be subject to tighter LTV limits.
29 June, 20131. TDSR*: Financial institutions are required to consider borrowers' other outgoing debt obligations when granting property loans. His total monthly repayments of his debt obligations should not exceed 60 per cent of his gross monthly income.
2. In particular, MAS requires:
  -borrowers named on a property loan to be the mortgagors of the residential property for which the loan is taken; 
  -"guarantors" who are standing guarantee for borrowers otherwise assessed by the financial institutions at the point of application for the housing loan not to meet the TDSR threshold for a property loan to be brought in as co-borrowers; and 
  -in the case of joint borrowers, that financial institutions use the income-weighted average age of borrowers when applying the rules on loan tenure.
12 January, 20131. ABSD: Citizens pay 7/10% on second/third purchase (from 0/3%); Permanent Residents (PR) pay 5/10% for first/second purchase (from 0/3%); foreigners and non-individuals now pay 15%.
2. LTV for second/third loan now 50/40% from 60%; non-individuals' LTV now 20% (from 40%).
3. Mortgage Servicing Ratio (MSR) for HDB loans now capped at 35% of gross monthly income (from 40%); MSR for loans from financial institutions capped at 30%.
4. PRs no longer allowed to rent out entire HDB flat.
6 October, 20121. Mortgage tenures capped at a maximum of 35 years.
2. For loans longer than 30 years or for loans that extend beyond retirement age of 65 years: LTV lowered to 60% for first mortgage and to 40% for second and subsequent mortgages.
3. LTV for non-individuals lowered to 40%.
8 December, 20111. ABSD introduced for further cooling measures:
  -Foreigners and non-individuals pay 10%, PRs buying second and subsequent property pay 3%, Singaporeans buying third and subsequent property pay 3%.
2. Developers purchasing more than four residential units and following through on intention to develop residential properties for sale would be waived ABSD
  -To qualify, developers have to produce proof of development and sale within five years.
14 January, 20111. Holding period for imposition of SSD increased to four years from three.
2. SSD rates raised to 16%, 12%, 8% and 4% of consideration.
3. LTV lowered to 60% from 70% for second property.
4. LTV for non-individual residential purchasers capped at 50%.
30 August, 20101. Holding period for imposition of SSD increased to three years from one.
2. Minimum cash payments raised to 10% from 5% for buyers with one or more outstanding housing loans.
3. LTV lowered to 70% from 80% for second properties.
20 February, 20101. Introduction of SSD for residential property and land sold within one year of purchase.
2. LTV lowered to 80% from 90% on all housing loans except HDB loans.
14 September, 20091. Interest absorption scheme (deferment of instalments until TOP) and interest-only housing loans (interest payment only until TOP) were scrapped for all private properties.

*wef Mar 2017, TDSR no longer apply to mortgage equity withdrawal loans with LTV ratios of 50 per cent and below.

Source: Monetary Authority of Singapore (MAS), Urban Redevelopment Authority (URA), Housing Development Board (HDB)


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