3RD COOLING MEASURE wef 30Aug 2010

MORE MEASURES TO COOL THE PROPERTY MARKET

The government has announced several new measures to cool the property market. MND says that there will be an ‘increase in the holding period for the imposition of Seller’s Stamp Duty from the current one year to three years’. Property buyers who have more than one outstanding loan can only take a 70% loan on their new purchase.

 

Here’s are an excerpt of the press release from MND:

MEASURES TO MAINTAIN A STABLE AND SUSTAINABLE PROPERTY MARKET

The Government announced today the following measures to maintain a stable and sustainable property market:

(i)  Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current one year to three years.

(ii) For property buyers who already have one or more outstanding housing loans at the time of the new housing purchase:

              – Increase the minimum cash payment from 5% to 10% of the valuation limit; and

              – Decrease the Loan-to-Value (LTV) limit for housing loans granted by financial institutions regulated by MAS to these buyers     from the current 80% to 70%.

The measures will take immediate effect on 30 August 2010.

 

 

Will it work? Let’s look at one crucial stat. Since the initial announcement in 14 September 2009 and 19 February 2010 prices have steadily increased. See chart below: