About Property Cooling Measures – December 2021 | On Wednesday 15th December 2021, the Singapore Government announced a new slew of property cooling measures amid the upcoming concerns that a property boom might tip the market into new territory. Therefore, from December 16, which was on Thursday, the government raised additional buyer’s stamp duty commonly known as (ABSD) rates and screwed up the total debt servicing ratio (TDSR) threshold.
Nonetheless, the current permanent residents and the ABSD rates for the citizens in Singapore purchasing their first residential property will stand still at 0% and 5% consecutively. However, the entities and the ABSD rates for other people will be increased by five to 15%. In the same vein, the TDSR threshold will also be screwed up from sixty percent to fifty-five percent. This will further apply to loans to buy the properties where the option to buy (OTP) is assured on or after December 16th. In addition, this will also be catered for the mortgage equity withdrawal loan applications crafted on 16th December or after this due date.
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Moreover, the (LTV) loan limit from HDB will also be screwed up from ninety percent to eighty-five percent. The private and public housing supply will also be raised to support the demand, the Ministry of National Development and Monetary Authority of Singapore and the Ministry of Finance said on Wednesday in a joint statement. This event arose in the wake of strong sales publicized in the Urban Redevelopment Authority’s latest data on sales of new units.
In November 2021, developers sold one thousand, five hundred and forty-seven new private homes, up to seventy percent monthly, as more homes were eligible for sale in October. On top of that, private housing has increased by roughly nine percent since the first quarter of twenty-twenty while HDB resale flat prices have also increased roughly by 15 percent.