Cooling measures as of 30 August 2010

Measures to maintain a stable and sustainable property market as of 30 August 2010

Summary

• Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current one year to three years.
• For property buyers who already have one or more outstanding housing loansat 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%.
• Allow households earning between $8,000 and $10,000, to buy new DBSS flats with a $30,000 CPF Housing Grant;
• Increase the supply of new flats, Design, Build and Sell Scheme (DBSS) flats, and Executive Condominiums (EC);
• Shorten the completion time of Build-To-Order (BTO) flats;
• Increase the Minimum Occupation Period (MOP) for non-subsidisedflats to 5 years; and
• Disallow concurrent ownership of both HDB flats and private residential properties within the MOP.

Policy 1. Seller Stamp Duty payable within 3 years

For properties bought on or after 30 Aug 2010 (The date of exercising the option to purchase the property, or signing of the sale and purchase (S&P) agreement, whichever is earlier), Stamp duty is calculated as follows:

1% for the first $180,000, 2% for the next $180,000, 3% for the balance; or
If > 360,000, SSD = 3% X Purchase Price -$5400

Policy 2. If the Buyer is currently serving 1 or more housing loans

1.Minimum cash payment from 5% to 10% of the valuation limit
2.Loan limit is lowered from 80% to 70%

Policy 3. More Flats, ECs, DBSS and shorter BTO

1. First-timerhouseholds with monthly income of between $8,000 and $10,000 may buy an EC and DBSS with a CPF Housing Grant of $30,000.
2.Applicable to DBSS projects after 30 Aug 2010
3.Shorter BTO completion time –2 and half years

Policy 4. Buy HDB, Sell Private Property

No purchase of private property during HDB Flat Minimum Occupation Period (MOP) period

If the HDB unit is bought before 5 March 2010
Resale Flat bought in the open market (without CPF Housing Grant Scheme)

2½ years from effective date of resale if the owner takes a loan from HDB

or

1 year from the effective date of resale if :
A.the owner has not taken a loan from HDB; or
B.he has refinanced HDB market interest rate loan with the bank/financial institution; or
C.he has taken a loan from the bank/financial institution to finance the purchase; or
D.he has fully redeemed the market interest rate loan obtained from HDB. You may submit an e-Request on Confirmation on the Computation of Requisite Occupation Period for the purpose of resale.

If the HDB unit is bought between 5 March 2010 -29 August 2010
MOP Period is 3 years from effective date of resale, regardless of the type of loan taken by the owners or loan status

If the HDB unit is bought in or after 30 August 2010
MOP Period is 5 years from effective date of resale, regardless of the type of loan taken by the owners or loan status