Just a few days ago, I got a friend who wrote this:
“realises that he has missed a window of opportunity, when every man on the street have their own theories on property investment…the next downturn perhaps…..”
And then yesterday, the government announced several measures to cool our property market.
Compared to previous measures, these measures are quite significant and will help to moderate the demand among property investors. Coupled with plans to increase the supply of new flats, hopefully we can prevent a property bubble from developing further.
A summary of the changes are as follows:
1. Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current one year to three years.
2. For property buyers who already have one or more outstanding housing loans at the time of the new housing purchase:
(a) Increase the minimum cash payment from 5% to 10% of the valuation limit; and
(b) Decrease the Loan-to-Value (LTV) limit for housing loans granted by financial institutions regulated by MAS to these buyers from the current 80% to 70%.
Further, HDB has also announced additional restrictions on the co-ownership of HDB flats and private properties.
3. The minimum occupation period (MOP) of non-subsidised flats for resale and subletting of flat will be increased from 3 to 5 years.
4. Buyers of non-subsidised flats will be disallowed from concurrently owning both an HDB flat and a private residential property within the MOP.
All these measures took immediate effect from yesterday.
More details here: