SINGAPORE: The Government on Thursday (Jul 5) announced it would raise Additional Buyer Stamp Duty (ABSD) rates and tighten Loan-to-Value (LTV) limits on residential property purchases in an effort to "cool the property market and keep price increases in line with economic fundamentals".
In a press release jointly sent by the finance and national development ministries, as well as the Monetary Authority of Singapore, the authorities said the ABSD will be raised by 5 percentage points for citizens and permanent residents buying second and subsequent homes, and by 10 percentage points for entities.
An additional ABSD of 5 per cent, which is non-remittable under the Remission Rules, will also be introduced for developers purchasing residential properties for housing development.
LTV limits will be tightened by 5 percentage points for all housing loans granted by financial institutions, the release stated.
The authorities noted that private residential prices increased by 9.1 per cent over the past year.
"The sharp increase in prices, if left unchecked, could run ahead of economic fundamentals and raise the risk of a destabilising correction later, especially with rising interest rates and the strong pipeline of housing supply," they said.