M
Mdm Tang
Guest
Re: 29 Aug 2010 : Singapore Property Latest News ( HDB & PRIVATE ) , Please Update He
.
FOR IMMEDIATE RELEASE
JOINT PRESS RELEASE
MEASURES TO MAINTAIN A STABLE AND SUSTAINABLE
PROPERTY MARKET
1 The Government announced today the following measures to
maintain a stable and sustainable property market:
a) Increase the holding period for imposition of Seller’s Stamp
Duty (SSD) from the current three years to four years;
b) 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;
c) 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
d) 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.
The measures will take effect on 14 January 2011.
2 The Government's objective is to ensure a stable and sustainable
property market where prices move in line with economic
fundamentals. Previous Government measures have to some extent
moderated the market, but sentiments remain buoyant. Low interest
rates plus excessive liquidity in the financial system, both in
Singapore and globally, could cause prices to rise beyond
sustainable levels based on economic fundamentals. Moreover,
when interest rates eventually rise, it could strain purchasers who
1 “Purchasers who are not individuals” refer to purchasers who are not natural persons. These
include but are not limited to corporations, trusts and collective investment schemes.
2 Financial institutions are required to conduct checks with HDB and with one or more credit
bureaus on whether the purchaser has an outstanding housing loan at the time of applying for a
housing loan for the property purchase. For joint purchasers, if either purchaser has an
outstanding housing loan, the joint purchasers will be considered as having an outstanding
housing loan.
have overextended themselves financially. Therefore, the
Government has decided to introduce additional targeted measures
to cool the property market and encourage greater financial
prudence among property purchasers.
Extending the Holding Period for Imposition of Seller’s Stamp Duty
(SSD) on Residential Properties from 3 Years to 4 Years & Raising the
SSD Rates
3 Currently, for residential properties bought on or after 30 August
2010, SSD3 is imposed on the sale of such properties within three
years of purchase. This followed the introduction of SSD for
residential properties bought on or after 20 February 2010.
4 The SSD rates will be increased sharply from 14 January 2011, so
as to provide a strong disincentive for investors looking to make
short term gains. The holding period for imposition of SSD will also
be extended from the current three years to four years. The impact
of the SSD is especially significant as it is payable regardless
whether the property is eventually sold at a gain or loss.
5 Specifically, for residential properties bought4 on or after 14 January
2011, the SSD rates to be levied on the full consideration will be
increased5 to as follows:
a) SSD at 16% (higher than up to 3% currently), if the property is
sold in the first year of purchase, i.e. the property is held for 1
year or less from its purchase date.
3 The SSD will apply to the transfer or disposal of interest (including sale and gifts) of residential
lands and residential units (whether completed or uncompleted).
4 The date of purchase for computation of the holding period for SSD shall be the date when a
buyer (i.e. Buyer A) exercises the option to purchase the property, or signs the sale and
purchase agreement, whichever is earlier. The date of sale of the property shall be the date when
the subsequent buyer (i.e. Buyer B) exercises the option to purchase the property from Buyer A,
or signs the sale and purchase agreement, whichever is earlier.
5 Currently, the SSD rates are levied at the same rate as buyer's stamp duty, i.e. 1% for the first
$180,000, 2% for the next $180,000 and 3% on the balance. The SSD rates are tiered according
to the duration of the holding period, i.e. the seller pays the full SSD rate if the residential property
is sold in the first year of purchase; 2/3 the full SSD rate if the sale is in the second year; 1/3 the
full SSD rate if in the third year.
b) SSD at 12% (higher than up to 2% currently), if the property is
sold in the second year of purchase, i.e. the property is held
for more than 1 year and up to 2 years.
c) SSD at 8% (higher than up to 1% currently), if the property is
sold in the third year of purchase, i.e. the property is held for
more than 2 years and up to 3 years.
d) SSD at 4% (no SSD currently), if the property is sold in the
fourth year of purchase, i.e. the property is held for more than
3 years and up to 4 years.
Please see Annex for examples of how the SSD will be computed.
6 The extended SSD will not affect HDB lessees as the required
Minimum Occupation Period for HDB flats is 5 years.
7 IRAS will be releasing an updated e-tax guide on the circumstances
under which SSD will apply and the procedures for paying SSD6.
The e-tax guide will be available at www.iras.gov.sg. Taxpayers with
enquiries may call IRAS at 6351 3697 or 6351 3698.
Lower the Loan-To-Value (LTV) Limit to 50% on housing loans
granted by financial institutions regulated by MAS for residential
property purchasers who are not individuals
8 With effect from 14 January 20117, an LTV limit of 50% will apply to
all residential property purchasers who are not individuals. This
includes corporations, trusts and collective investment schemes,
among others. The 50% LTV limit for housing loans will also apply
to joint property purchases by an individual and a purchaser who is
not an individual.
6 SSD is to be paid within 14 days of the execution of the Agreement (i.e. exercise of Option or
signing of Agreement). If the Agreement is executed overseas, upon receipt of the Agreement in
Singapore, the SSD must be paid within 30 days.
7 The 50% LTV limit will apply to transactions where the date on which the option to purchase
(OTP) was granted falls on or after 14 January 2011; or if there is no OTP, where the date of the
Sale & Purchase agreement falls on or after 14 January 2011.
Lower the LTV limit on housing loans granted by financial institutions
regulated by MAS from the current 70% to 60% for residential
property purchasers who are individuals with one or more
outstanding housing loans at the time of the new housing purchase
9 The LTV limit is lowered from 70% to 60% with effect from 14
January 20118 for borrowers who are individuals and have one or
more outstanding housing loans (whether from HDB or a financial
institution regulated by MAS) at the time of applying for a housing
loan for the new property purchase.
10 However, borrowers who can show evidence that they have sold
their existing properties will not be subject to the lower LTV limit
when they buy a new property. Where the existing property is a
private property, he can show a signed Sale & Purchase (S&P)
agreement with the IRAS certificate showing that stamp duty has
been paid on it. Where the existing property is a HDB flat, he can
show HDB’s approval letter to sell the flat, that HDB will issue within
2 weeks of the First Appointment. These borrowers will still be able
to borrow at an 80% LTV from financial institutions.
11 Borrowers without any outstanding housing loans continue to have a
LTV cap of 80%.
12 These rules apply to housing loans granted by financial institutions
for private residential properties, Executive Condominiums, HUDC
flats and HDB flats (including DBSS flats).
13 Loans granted by HDB for HDB flats (including DBSS flats) will still
have a LTV cap of 90%. HDB loans are offered to eligible Singapore
citizens buying their first homes or right-sizing their flats to meet their
housing needs. HDB loan applicants are required to utilise all the
balance in their CPF Ordinary Account before HDB loans will be
granted. Furthermore, those taking a second concessionary HDB
loan must use the CPF refund and 50% of the cash proceeds from
the sale of their previous flat before they are granted an HDB loan.
This is to ensure that eligible buyers, especially first-time buyers,
purchase public housing in a financially prudent manner.
8 The 60% LTV limit will apply to transactions where the date on which the option to purchase
(OTP) was granted falls on or after 14 January 2011; or if there is no OTP, where the date of the
Sale & Purchase agreement falls on or after 14 January 2011.
Adequate Supply in the Pipeline
14 There is an ample supply of private residential units and buyers
need not rush to buy now. The Government will continue to ensure
an adequate supply of housing to meet demand.
15 The annual average take-up9 of private residential units between
2007 and 2010 is about 12,700 units. Thus far, the sites awarded
under the Government Land Sales (GLS) Programme in 2010 will
already yield about 13,300 units. In the GLS Programme for the first
half of 2011, we will make available sites that can yield about 14,300
private housing units, of which about 8,100 units will be from sites on
the Confirmed List.
16 As at 3Q2010, there were about 64,400 uncompleted units of private
housing from projects in the pipeline10. Of these, about 33,800 units
were still unsold. This is equivalent to about 3 years of supply based
on the average annual take-up over the last 4 years. The 33,800
unsold units in the pipeline comprised 3,300 units that had been
launched for sale by developers and 11,400 units which had the prerequisite
conditions for sale 11 and could be launched for sale
immediately. The remaining 19,100 units with planning approvals did
not have the pre-requisite conditions for sale but these could be
obtained quickly from the Government12. The Government will also
make available more supply in future GLS programmes. Buyers
should bear in mind this supply in the pipeline when deciding
whether to buy now.
9
Take-up refers to the number of private residential units, including Executive Condominium (EC)
units, sold by developers.
10 These refer to new development and redevelopment projects with planning approvals, i.e.
either a Provisional Permission (PP) or Written Permission (WP).
11 These refer to private residential developments with Housing Developer Licence and Building
Plan Approval. Under the Housing Developer (Control and Licensing) Act, a sale licence must be
obtained for a project with more than 4 units, if the developer intends to sell uncompleted
residential units in the development. However, the sale of the residential units can only
commence with the approval of the building plans of the development.
12 These refer to uncompleted private residential developments without pre-requisites for sale but
with WP or PP granted. The sale licences could be obtained within 5 working days and building
plan approvals could be obtained within 7 working days from the date of application for cases
where clearances from various technical agencies are obtained and relevant documents are in
order during formal submissions.
17 The Government will continue to monitor the property market closely
and take further steps to promote a stable and sustainable property
market if necessary.
Issued by the Ministry of National Development, Ministry of Finance
and Monetary Authority of Singapore
13 January 2011
For general queries on the property market, please contact:
Ms Senbagavalli d/o Arumugam
Assistant Director (Corporate Communications)
Ministry of National Development
DID: 3106 7295
Email: [email protected]
Ms Kwok Zhenli, Olivia
Corporate Communications Officer
Housing and Development Board
DID: 6490 1248
Email: [email protected]
For queries on the Seller’s Stamp Duty and its application, please contact:
Ms Deanna Choo
Director (Corporate Communications)
Inland Revenue Authority of Singapore
DID: 6351 2090
Email: [email protected]
Ms Regina Tan
Associate (Corporate Communications)
Ministry of Finance
DID: 6332 7407
Email: [email protected]
For queries on the lowering of LTV on housing loans, please contact:
Ms Calisa Yip
Assistant Director (Communications)
Monetary Authority of Singapore
DID: 6229 9104
Email: [email protected]
Annex
Computation of the Seller’s Stamp Duty (SSD) for properties bought
on or after 14 January 2011 and sold within 4 years of purchase
Example 1:
Mr Lee purchased his residential property on 14 January 2011 and sold it
on 13 January 2012 for $1,000,000.
• Holding period: 1 year (i.e. SSD rate of 16% is chargeable)
• SSD payable :
16% of $1,000,000 = $160,000
Example 2:
Mr Tan purchased his residential property on 14 January 2011 and sold it
on 13 January 2013 for $1,000,000.
• Holding period: 2 years (i.e. SSD rate of 12% is chargeable)
• SSD payable :
12% of $1,000,000 = $120,000
Example 3:
Mr Tan purchased his residential property on 14 January 2011 and sold it
on 13 January 2014 for $1,000,000.
• Holding period: 3 years (i.e. SSD rate of 8% is chargeable)
• SSD payable :
8% of $1,000,000 = $80,000
Example 4:
Mr Tan purchased his residential property on 14 January 2011 and sold it
on 13 January 2015 for $1,000,000.
• Holding period: 4 years (i.e. SSD rate of 4% is chargeable)
• SSD payable :
4% of $1,000,000 = $40,000
Example 5:
Mr Tan purchased his residential property on 14 January 2011 and sold it
on 14 January 2015 for $1,000,000.
• Holding period: More than 4 years. No SSD is payable.
• SSD payable: $0
.
.
FOR IMMEDIATE RELEASE
JOINT PRESS RELEASE
MEASURES TO MAINTAIN A STABLE AND SUSTAINABLE
PROPERTY MARKET
1 The Government announced today the following measures to
maintain a stable and sustainable property market:
a) Increase the holding period for imposition of Seller’s Stamp
Duty (SSD) from the current three years to four years;
b) 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;
c) 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
d) 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.
The measures will take effect on 14 January 2011.
2 The Government's objective is to ensure a stable and sustainable
property market where prices move in line with economic
fundamentals. Previous Government measures have to some extent
moderated the market, but sentiments remain buoyant. Low interest
rates plus excessive liquidity in the financial system, both in
Singapore and globally, could cause prices to rise beyond
sustainable levels based on economic fundamentals. Moreover,
when interest rates eventually rise, it could strain purchasers who
1 “Purchasers who are not individuals” refer to purchasers who are not natural persons. These
include but are not limited to corporations, trusts and collective investment schemes.
2 Financial institutions are required to conduct checks with HDB and with one or more credit
bureaus on whether the purchaser has an outstanding housing loan at the time of applying for a
housing loan for the property purchase. For joint purchasers, if either purchaser has an
outstanding housing loan, the joint purchasers will be considered as having an outstanding
housing loan.
have overextended themselves financially. Therefore, the
Government has decided to introduce additional targeted measures
to cool the property market and encourage greater financial
prudence among property purchasers.
Extending the Holding Period for Imposition of Seller’s Stamp Duty
(SSD) on Residential Properties from 3 Years to 4 Years & Raising the
SSD Rates
3 Currently, for residential properties bought on or after 30 August
2010, SSD3 is imposed on the sale of such properties within three
years of purchase. This followed the introduction of SSD for
residential properties bought on or after 20 February 2010.
4 The SSD rates will be increased sharply from 14 January 2011, so
as to provide a strong disincentive for investors looking to make
short term gains. The holding period for imposition of SSD will also
be extended from the current three years to four years. The impact
of the SSD is especially significant as it is payable regardless
whether the property is eventually sold at a gain or loss.
5 Specifically, for residential properties bought4 on or after 14 January
2011, the SSD rates to be levied on the full consideration will be
increased5 to as follows:
a) SSD at 16% (higher than up to 3% currently), if the property is
sold in the first year of purchase, i.e. the property is held for 1
year or less from its purchase date.
3 The SSD will apply to the transfer or disposal of interest (including sale and gifts) of residential
lands and residential units (whether completed or uncompleted).
4 The date of purchase for computation of the holding period for SSD shall be the date when a
buyer (i.e. Buyer A) exercises the option to purchase the property, or signs the sale and
purchase agreement, whichever is earlier. The date of sale of the property shall be the date when
the subsequent buyer (i.e. Buyer B) exercises the option to purchase the property from Buyer A,
or signs the sale and purchase agreement, whichever is earlier.
5 Currently, the SSD rates are levied at the same rate as buyer's stamp duty, i.e. 1% for the first
$180,000, 2% for the next $180,000 and 3% on the balance. The SSD rates are tiered according
to the duration of the holding period, i.e. the seller pays the full SSD rate if the residential property
is sold in the first year of purchase; 2/3 the full SSD rate if the sale is in the second year; 1/3 the
full SSD rate if in the third year.
b) SSD at 12% (higher than up to 2% currently), if the property is
sold in the second year of purchase, i.e. the property is held
for more than 1 year and up to 2 years.
c) SSD at 8% (higher than up to 1% currently), if the property is
sold in the third year of purchase, i.e. the property is held for
more than 2 years and up to 3 years.
d) SSD at 4% (no SSD currently), if the property is sold in the
fourth year of purchase, i.e. the property is held for more than
3 years and up to 4 years.
Please see Annex for examples of how the SSD will be computed.
6 The extended SSD will not affect HDB lessees as the required
Minimum Occupation Period for HDB flats is 5 years.
7 IRAS will be releasing an updated e-tax guide on the circumstances
under which SSD will apply and the procedures for paying SSD6.
The e-tax guide will be available at www.iras.gov.sg. Taxpayers with
enquiries may call IRAS at 6351 3697 or 6351 3698.
Lower the Loan-To-Value (LTV) Limit to 50% on housing loans
granted by financial institutions regulated by MAS for residential
property purchasers who are not individuals
8 With effect from 14 January 20117, an LTV limit of 50% will apply to
all residential property purchasers who are not individuals. This
includes corporations, trusts and collective investment schemes,
among others. The 50% LTV limit for housing loans will also apply
to joint property purchases by an individual and a purchaser who is
not an individual.
6 SSD is to be paid within 14 days of the execution of the Agreement (i.e. exercise of Option or
signing of Agreement). If the Agreement is executed overseas, upon receipt of the Agreement in
Singapore, the SSD must be paid within 30 days.
7 The 50% LTV limit will apply to transactions where the date on which the option to purchase
(OTP) was granted falls on or after 14 January 2011; or if there is no OTP, where the date of the
Sale & Purchase agreement falls on or after 14 January 2011.
Lower the LTV limit on housing loans granted by financial institutions
regulated by MAS from the current 70% to 60% for residential
property purchasers who are individuals with one or more
outstanding housing loans at the time of the new housing purchase
9 The LTV limit is lowered from 70% to 60% with effect from 14
January 20118 for borrowers who are individuals and have one or
more outstanding housing loans (whether from HDB or a financial
institution regulated by MAS) at the time of applying for a housing
loan for the new property purchase.
10 However, borrowers who can show evidence that they have sold
their existing properties will not be subject to the lower LTV limit
when they buy a new property. Where the existing property is a
private property, he can show a signed Sale & Purchase (S&P)
agreement with the IRAS certificate showing that stamp duty has
been paid on it. Where the existing property is a HDB flat, he can
show HDB’s approval letter to sell the flat, that HDB will issue within
2 weeks of the First Appointment. These borrowers will still be able
to borrow at an 80% LTV from financial institutions.
11 Borrowers without any outstanding housing loans continue to have a
LTV cap of 80%.
12 These rules apply to housing loans granted by financial institutions
for private residential properties, Executive Condominiums, HUDC
flats and HDB flats (including DBSS flats).
13 Loans granted by HDB for HDB flats (including DBSS flats) will still
have a LTV cap of 90%. HDB loans are offered to eligible Singapore
citizens buying their first homes or right-sizing their flats to meet their
housing needs. HDB loan applicants are required to utilise all the
balance in their CPF Ordinary Account before HDB loans will be
granted. Furthermore, those taking a second concessionary HDB
loan must use the CPF refund and 50% of the cash proceeds from
the sale of their previous flat before they are granted an HDB loan.
This is to ensure that eligible buyers, especially first-time buyers,
purchase public housing in a financially prudent manner.
8 The 60% LTV limit will apply to transactions where the date on which the option to purchase
(OTP) was granted falls on or after 14 January 2011; or if there is no OTP, where the date of the
Sale & Purchase agreement falls on or after 14 January 2011.
Adequate Supply in the Pipeline
14 There is an ample supply of private residential units and buyers
need not rush to buy now. The Government will continue to ensure
an adequate supply of housing to meet demand.
15 The annual average take-up9 of private residential units between
2007 and 2010 is about 12,700 units. Thus far, the sites awarded
under the Government Land Sales (GLS) Programme in 2010 will
already yield about 13,300 units. In the GLS Programme for the first
half of 2011, we will make available sites that can yield about 14,300
private housing units, of which about 8,100 units will be from sites on
the Confirmed List.
16 As at 3Q2010, there were about 64,400 uncompleted units of private
housing from projects in the pipeline10. Of these, about 33,800 units
were still unsold. This is equivalent to about 3 years of supply based
on the average annual take-up over the last 4 years. The 33,800
unsold units in the pipeline comprised 3,300 units that had been
launched for sale by developers and 11,400 units which had the prerequisite
conditions for sale 11 and could be launched for sale
immediately. The remaining 19,100 units with planning approvals did
not have the pre-requisite conditions for sale but these could be
obtained quickly from the Government12. The Government will also
make available more supply in future GLS programmes. Buyers
should bear in mind this supply in the pipeline when deciding
whether to buy now.
9
Take-up refers to the number of private residential units, including Executive Condominium (EC)
units, sold by developers.
10 These refer to new development and redevelopment projects with planning approvals, i.e.
either a Provisional Permission (PP) or Written Permission (WP).
11 These refer to private residential developments with Housing Developer Licence and Building
Plan Approval. Under the Housing Developer (Control and Licensing) Act, a sale licence must be
obtained for a project with more than 4 units, if the developer intends to sell uncompleted
residential units in the development. However, the sale of the residential units can only
commence with the approval of the building plans of the development.
12 These refer to uncompleted private residential developments without pre-requisites for sale but
with WP or PP granted. The sale licences could be obtained within 5 working days and building
plan approvals could be obtained within 7 working days from the date of application for cases
where clearances from various technical agencies are obtained and relevant documents are in
order during formal submissions.
17 The Government will continue to monitor the property market closely
and take further steps to promote a stable and sustainable property
market if necessary.
Issued by the Ministry of National Development, Ministry of Finance
and Monetary Authority of Singapore
13 January 2011
For general queries on the property market, please contact:
Ms Senbagavalli d/o Arumugam
Assistant Director (Corporate Communications)
Ministry of National Development
DID: 3106 7295
Email: [email protected]
Ms Kwok Zhenli, Olivia
Corporate Communications Officer
Housing and Development Board
DID: 6490 1248
Email: [email protected]
For queries on the Seller’s Stamp Duty and its application, please contact:
Ms Deanna Choo
Director (Corporate Communications)
Inland Revenue Authority of Singapore
DID: 6351 2090
Email: [email protected]
Ms Regina Tan
Associate (Corporate Communications)
Ministry of Finance
DID: 6332 7407
Email: [email protected]
For queries on the lowering of LTV on housing loans, please contact:
Ms Calisa Yip
Assistant Director (Communications)
Monetary Authority of Singapore
DID: 6229 9104
Email: [email protected]
Annex
Computation of the Seller’s Stamp Duty (SSD) for properties bought
on or after 14 January 2011 and sold within 4 years of purchase
Example 1:
Mr Lee purchased his residential property on 14 January 2011 and sold it
on 13 January 2012 for $1,000,000.
• Holding period: 1 year (i.e. SSD rate of 16% is chargeable)
• SSD payable :
16% of $1,000,000 = $160,000
Example 2:
Mr Tan purchased his residential property on 14 January 2011 and sold it
on 13 January 2013 for $1,000,000.
• Holding period: 2 years (i.e. SSD rate of 12% is chargeable)
• SSD payable :
12% of $1,000,000 = $120,000
Example 3:
Mr Tan purchased his residential property on 14 January 2011 and sold it
on 13 January 2014 for $1,000,000.
• Holding period: 3 years (i.e. SSD rate of 8% is chargeable)
• SSD payable :
8% of $1,000,000 = $80,000
Example 4:
Mr Tan purchased his residential property on 14 January 2011 and sold it
on 13 January 2015 for $1,000,000.
• Holding period: 4 years (i.e. SSD rate of 4% is chargeable)
• SSD payable :
4% of $1,000,000 = $40,000
Example 5:
Mr Tan purchased his residential property on 14 January 2011 and sold it
on 14 January 2015 for $1,000,000.
• Holding period: More than 4 years. No SSD is payable.
• SSD payable: $0
.
