The Singapore property market remains one of the most attractive in the world, where both locals and foreigners can acquire interests in real estate and benefit from its economic prosperity.
At the same time, the Singapore government has also implemented several rounds of cooling measures over the years to help ensure long-term stability, affordability, and sustainable price growth.
| Year | Date of Implementation | Description |
|---|---|---|
| 1996 | 15 May | • Government implemented a tax as income if property sold within first 3 years • Seller's Stamp Duty was introduced • LTV introduced for bank loans for housing, set at 80% of the cost of the residential property. • Measures were rolled back between November 1997 and July 2005 |
| 2009 | 14 Sep | Abolishing Interest Absorption Scheme (IAS) and Interest-Only Housing Loans (IOL) by Banks. These measures aimed to curb speculative purchases and stabilize the market. |
| 2010 | 20 Feb | • SSD introduced on all residential properties & lands sold within the first year • LTV lowered to 80% from 90% on all housing loans except HDB Loans |
| 30 Aug | • SSD holding period increased from 1 year to 3 years | |
| 2011 | 14 Jan | • SSD holding period increased from 3 years to 4 years • SSD rates raised to 16%, 12%, 8% and 4% for residential properties |
| 8 Dec | • ABSD first introduced: SC(0/0/3), PR (0/3), Foreigners & Companies (10%) | |
| 2012 | 6 Oct | • Maximum tenure of all new residential property loans capped at 35 years |
| 2013 | 12 Jan | • ABSD increased: SC(0/7/10), PR(5/10), Foreigners & Companies (15%) • MSR for HDB loans now capped at 35% from 40%, From FI capped at 30% • PRs no longer allowed to rent out entire HDB flat |
| 29 June | • TDSR first introduced at 60% | |
| 27 Aug | • SPR households can buy resale HDB only after 3 years from obtaining SPR status • Maximum tenure for HDB housing loans is reduced from 30 years to 25 years • MSR limit is reduced from 35% to 30% of the borrower's gross monthly income |
|
| 9 Dec | • MSR cap of 30% (reduced from 60%) applies to new EC purchases from 10 Dec 2013 onwards | |
| 2017 | 11 Mar | • Reduction of SSD to a 3 year holding period, with rates being 12%, 8%, 4% • TDSR no longer apply to mortgage equity withdrawal loans with LTV ratios of ⩽ 50% |
| 2018 | 6 July | • ABSD rates increased: SC(0/12/15), PR(5/15), Foreigners & Companies (20%) • ABSD (Trust) of 35% payable by a trustee of any trust when acting in that capacity Can apply for remission of ABSD (Trust) if fulfil certain conditions |
| 2021 | 16 Dec | • TDSR revised to 55% from 60% • Loan-to-Value (LTV) limit for HDB housing loans lowered from 90% to 85% • ABSD rates increased: SC(0/17/25), SPR(5/25/30), Foreigners(30%), Entities(35%) |
| 2022 | 30 Sep | • For property loans granted by private financial institutions, MAS will raise by 0.5%-point the medium-term interest rate floor used to compute TDSR and MSR • For housing loans granted by HDB, HDB will introduce an interest rate floor of 3% for computing the eligible loan amount. • Loan-to-Value (LTV) limit for HDB housing loans lowered from 85% to 80% • 15 months wait-out period for private residential property owners (PPOs) and ex-PPOs to buy a non-subsidised HDB resale flat. The wait-out period will not apply to seniors aged 55 and above who are moving from their private property to a 4-room or smaller resale flat. |
| 2023 | 14 Feb | • BSD rates increased: For residential properties, the portion of the value of the property in excess of $1.5 million and up to $3 million will be taxed at 5%, while that in excess of $3 million will be taxed at 6%. |
| 27 April | • ABSD rates increased: SC(0/20/30), SPR(5/30/35), Foreigners(60%), Entities(65%) • ABSD (Trust) of 65% payable by a trustee of any trust when acting in that capacity Can apply for remission of ABSD (Trust) if fulfil certain conditions |
| Purchase Price or Value | BSD Rate (wef 15 Feb 2023) |
|---|---|
| $1 to $180,000 | 1% |
| $180,001 to $360,000 | 2% - $1,800 |
| $360,001 to $1m | 3% - $5,400 |
| $1,000,001 to $1.5m | 4% - $15,400 |
| $1,500,001 to $3m | 5% - $30,400 |
| Above $3m | 6% - $60,400 |
| Buyer Profile | ABSD Rates (8 Dec 2011 to 11 Jan 2013) | ABSD Rates (12 Jan 2013 to 5 Jul 2018) | ABSD Rates (6 Jul 2018 to 15 Dec 2021) | ABSD Rates (From 16 Dec 2021) |
|---|---|---|---|---|
| SC buying 1st Residential Property | NA | NA | NA | NA |
| SC buying 2nd Residential Property | NA | 7% | 12% | 17% |
| SC buying 3rd and subsequent Residential Property | 3% | 10% | 15% | 25% |
| SPR buying 1st Residential Property | NA | 5% | 5% | 5% |
| SPR buying 2nd Residential Property | 3% | 10% | 15% | 25% |
| SPR buying 3rd and subsequent Residential Property | 3% | 10% | 15% | 30% |
| Foreigner buying any Residential Property | 10% | 15% | 20% | 30% |
| Entities buying any Residential Property | 10% | 15% | 25% | 35% |
| Housing Developer | 10% | 15% | 25% + Additional 5% (non-remittable) | 35% + Additional 5% (non-remittable) |
In response to people buying and flipping property, the government moved to tax as income:
If sold within one year of purchase, 100% of gains;
If sold within two years of purchase, two-thirds; and
If sold within three years of purchase, a third
Appropriate individual or corporate tax rates were applied for the above.
The buyer’s stamp duty payment was also moved forward to the time of signing the sale and purchase agreement. Before this, it was only payable upon the transfer of the title deed. This allowed speculators to buy and sell property quickly, and avoid paying it.
A seller’s stamp duty was introduced, charged to people selling their homes within three years of purchase.
A loan-to-value limit was introduced for bank loans for housing. This was set at 80% of the cost of the residential property.
Foreigners without permanent residency and non-local companies are not allowed to take Singapore-dollar housing loans.
The above suite of measures was rolled back between November 1997 and July 2005
Reference : A summary of Singapore’s property cooling measures: 1996 to present day, Business Times
To attract people to buy houses and take up loans, banks had previously teamed up with developers to create two products:
Interest absorption schemes, allowing home buyers to make only the down payment (usually 20% of the property value) and defer further payments until the home is built; developers pay the bank the interest on the loan until then
Interest-only housing loans, which only require the home buyer to begin repaying the principal after a specified period – usually when the unit is completed
Both products, along with measures to support developers, were scrapped.
Reference : A summary of Singapore’s property cooling measures: 1996 to present day, Business Times
Reference : Measures To Ensure a Stable and Sustainable Property Market, MAS
Reference : Joint Press Release on Measures to Maintain a Stable and Sustainable Property Market, MAS
Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current three years to four years;
Raise the SSD rates to 16%, 12%, 8% and 4% of consideration for residential properties which are bought on or after 14 January 2011, and are sold in the first, second, third and fourth year of purchase respectively;
Lower the Loan-To-Value (LTV) limit to 50% on housing loans granted by financial institutions regulated by MAS for property purchasers who are not individuals1; and
Lower the LTV limit on housing loans granted by financial institutions regulated by MAS from 70% to 60% for property purchasers who are individuals with one or more outstanding housing loans2 at the time of the new housing purchase.
Reference : Measures to Maintain a Stable and Sustainable Property Market, MAS
The Government announced today an Additional Buyer’s Stamp Duty (ABSD) to be imposed on certain categories of residential property purchases. The ABSD will be imposed over and above the current Buyer’s Stamp Duty, and will apply to the purchase price or market value of the property (whichever is higher) for the following purchases:
- Foreigners and non-individuals1 (corporate entities) buying any residential property will pay an ABSD of 10%;
- Permanent Residents (PRs) owning one2 and buying the second and subsequent residential property will pay an ABSD of 3%; and
- Singapore Citizens (Singaporeans) owning two2 and buying the third and subsequent residential property will pay an ABSD of 3%.
The ABSD will take effect on 8 Dec 2011. Remission of ABSD will be given for options granted on or before 7 Dec 2011 and exercised within 3 weeks (i.e. on or before 28 Dec 2011) or the option validity period, whichever is the earlier.
Reference : Additional Buyer's Stamp Duty for a Stable and Sustainable Property Market, MAS
The Monetary Authority of Singapore (MAS) will restrict the tenure of loans granted by financial institutions for the purchase of residential properties. MAS’ move is part of the Government’s broader aim of avoiding a price bubble and fostering long term stability in the property market.
The maximum tenure of all new residential property loans will be capped at 35 years. In addition, loans exceeding 30 years tenure will face significantly tighter loan-to-value (LTV) limits. This will apply to both private properties and HDB flats. The new rules will take effect from 6 October 2012.
Reference : MAS Restricts Loan Tenure for Residential Properties, MAS
The following measures will take effect on 12 January 2013:
Reference : Additional Measures To Ensure A Stable And Sustainable Property Market, MAS
The methodology for computing the TDSR will be standardised. FIs will be required to:
Reference : MAS Introduces Debt Servicing Framework for Property Loans, MAS
To ensure financial prudence in purchase of public housing and discourage over-consumption, we will reduce the maximum tenure for HDB housing loans from 30 years to 25 years. The Mortgage Servicing Ratio (MSR) limit will also be reduced from 35% to 30% of the borrower’s gross monthly income.
Currently, Singapore Permanent Resident (SPR) households, i.e. SPR households with no Singapore citizen owner, may buy resale HDB flats as soon as they acquire SPR status.
We have reviewed this policy and have decided that SPR households should wait three years from the date of obtaining SPR status, before they can buy a resale HDB flat.
Reference : More Help, Stronger Support, Better Homes, MND, HDB
We will now require second-timer applicants who buy EC units directly from property developers to pay a resale levy, similar to second-timer applicants who buy BTO flats. The new requirement will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed.
The 30% MSR cap will apply to EC purchases where the Option to Purchase is granted on or after 10 Dec 2013.
Reference : Refining the Executive Condominium Housing Scheme, MAS
The SSD is currently payable by those who sell a residential property within 4 years of purchase, at rates of between 4% and 16% of the property’s value. The number of property sales within the 4-year window has fallen significantly over the years since this measure was introduced. The Government will therefore revise the SSD as follows:
a) Impose SSD on holding periods of up to 3 years, down from the current 4 years; and
b) Lower the SSD rate by four percentage points for each tier. The new SSD rates will range from 4% (for properties sold in the third year) to 12% (for those sold within the first year).
Reference : Joint Press Release on Measures Relating to Residential Property, MND
Raising ABSD Rates
The current ABSD rates for Singapore Citizens (SC) and Singapore Permanent Residents (SPR) purchasing their first residential property will be retained at 0% and 5% respectively.
The Government will make the following changes to ABSD rates:
a. Raise ABSD by 5%-points for all other individuals; and
b. Raise ABSD by 10%-points for entities; and
c. Introduce an additional ABSD of 5% that is non-remittable under the Remission Rules1 (payable on the purchase price or market value, as applicable) for developers purchasing residential properties for housing development.
Reference : Raising Additional Buyer's Stamp Duty Rates and Tightening Loan-to-Value Limits to Promote a Stable and Sustainable Property Market, MAS
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%.
Reference : Measures to Cool the Property Market, MND
For property loans granted by private financial institutions, MAS will raise by 0.5%-point the medium-term interest rate floor used to compute the Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR).
Second, we will lower the Loan-to-Value (LTV) limit for HDB housing loans from 85% to 80%. The lower LTV limit will apply to new flat applications for sales exercises launched and complete resale applications which are received by HDB on or after 30 September 2022.
To moderate demand in the HDB resale market, we will impose a wait-out period of 15 months for private residential property owners (PPOs) and ex-PPOs to buy a non-subsidised HDB resale flat. The wait-out period will not apply to seniors aged 55 and above who are moving from their private property to a 4-room or smaller resale flat. This new measure will take effect from 30 September 2022. It is a temporary measure which will be reviewed in future depending on overall market conditions and housing demand.
Reference : Measures to Promote Sustainable Conditions in the Property Market by Ensuring Prudent Borrowing and Moderating Demand, MAS
In his Budget 2023 Speech, then Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong introduced higher marginal Buyer Stamp Duty rates for higher-value residential and non-residential properties.
For residential properties,
Reference : Moving Forward In A New Era, Budget 2023
To promote a sustainable property market and prioritise housing for owner-occupation, the Government will raise the ABSD rates further to pre-emptively manage investment demand.
The specific ABSD rates increases are as follows:
Reference : Measures for a Sustainable Property Market, MAS