Singapore Takes Measures To Cool Property Market

The Singapore Government has introduced a slew of measures to cool down the property market on the island, among them including a 15-month waiting period before private owners are allowed to purchase HDB homes from the open market.

Other forms of measures that take effect from September 30 are the tightening of the maximum loan limits and for HDB homes the loan limits have been lowered to 80% from 85%. “It is a temporary measure which will be reviewed in the future depending on overall market conditions and housing demand,” said HDB, the Monetary Authority of Singapore (MAS), and the Ministry of National Development (MND) in a joint press release.

The authorities are reacting to the rising interest rates and potential future increases which could impact borrowers for home loans. To ensure prudent borrowing and avoid future difficulties in servicing home loans, the Government will tighten the maximum loan quantum limits for housing loans,” they said.

Previously, such property owners were allowed to buy an HDB resale flat on the open market if they sold their private properties within six months of purchaing the HDB unit.

The new 15-month wait-out period will not apply to seniors aged 55 and above who are moving from their private property to a four-room or smaller resale flat, the authorities said.

The wait-out period for private homeowners who are first-timers and wish to apply for the CPF Housing Grant and Enhanced CPF Housing Grant for their resale flat purchase also remains unchanged at 30 months.

The new 15-month wait-out period is a temporary measure that will be reviewed.

“The Government remains committed to keeping public housing inclusive, affordable, and accessible to Singaporeans. We will continue to monitor the property market and adjust our policies to ensure that they remain relevant,” the authorities said.

“We urge households to exercise prudence before taking up any new loans, and be sure of their debt-servicing ability before making long-term financial commitments.”

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