HDB Circular: Measures To Ensure A Stable And Sustainable Property Market‏

Date : 20 Feb 2010





Mr Jeffhery Foo
President, Institute of Estate Agents


Dear Mr Jeffhery Foo,

MEASURES TO ENSURE A STABLE AND SUSTAINABLE PROPERTY MARKET

The government has announced the following measures to ensure a stable and sustainable property market, to take effect from 20 Feb 2010:

a. Introducing a Seller’s Stamp Duty (SSD) on all residential properties and residential lands that are bought from 20 Feb 2010 and sold within 1 year from the date of purchase; and

b. Lowering the Loan-to-Value (LTV) limit to 80% for all housing loans provided by financial institutions regulated by the Monetary Authority of Singapore (MAS).

EFFECT OF MEASURES ON HDB FLATS

(A) SELLER'S STAMP DUTY (SSD)

2 The SSD will not be applicable to HDB flats (including flats sold under the Design, Build and Sell (DBSS) Scheme), as they are already subject to a minimum occupation period of at least one year. It will apply to Executive Condominiums and HUDC flats that are purchased on the resale market, as they are not subject to a minimum occupation period.

(B) LOWERING OF LOAN-TO-VALUE (LTV) LIMIT TO 80% FOR HOUSING LOANS

3 The 80% LTV limit will apply only to housing loans taken from banks/financial institutions, for transactions where the Option to Purchase (OTP) was granted on or after 20 Feb 2010, or if there is no OTP, where the date of the sale and purchase agreement falls on or after 20 February 2010.

4 Housing Loans granted by HDB for HDB flats (including DBSS flats) will still have an LTV cap of 90%.

PRESS RELEASE

5 Details of the measures are in the attached Press Release:

http://www.mnd.gov.sg/newsroom/newsreleases/2010/news19022010.htm

6 Please disseminate the information to your members.

Thank you.

Head, Resale Planning Unit
Housing & Development Board