Singapore Unveils Steps to Stabilize Property Market

The Singapore government announced measures meant to ensure a stable and sustainable property market in the city-state.
Singapore’s steps come after the island’s private home sales last year were just shy of the 2007 record, helped by the nation’s economic recovery. A total of 14,688 homes were sold last year, compared with the record 14,811 transacted in 2007, according to government data.
The government said in a statement dated yesterday it is levying a seller’s stamp duty on all residential properties and lands that are sold within one year from the date of purchase. The stamp duty will be 1 percent for the first S$180,000 ($127,497), 2 percent for the next S$180,000 and 3 percent for the balance.
“The objective of this new tax measure is to discourage short-term speculative activity that could distort underlying prices,” the government said in the statement.
The city-state is also lowering the loan-to-value limit to 80 percent from 90 percent for all housing loans provided by financial institutions regulated by the Monetary Authority of Singapore. Loans by the Housing Development Board for HDB flats will remain at 90 percent.
The measures will take effect today. The government said it will continue to ensure adequate supply of housing to meet demand. Sites that can provide 10,550 private housing units have already been made available in the Confirmed and Reserve List of the Government Sales Program in the first half of this year, according to the statement.