SINGAPORE PROPERTY COOLING MEASURES
These are the active government rules related to stamp duties and housing loan limits. They apply to the buying & selling of residential properties in Singapore.
- Buyer Stamp Duty (BSD)
- Additional Buyer Stamp Duty (ABSD)
- Seller Stamp Duty (SSD)
- Total Debt Servicing Ratio (TDSR)
- Mortgage Servicing Ratio (MSR) – HDB ONLY
- Loan Tenure & Loan-to-Value Limits (LTV)
Buyer Stamp Duty (BSD)
Buyer’s Stamp Duty (BSD) is a tax payable by buyers of properties in Singapore. The amount of BSD payable depends on the purchase price of the property or the market value of the property, whichever is higher.
The rate payable is the same for every buyer, regardless of nationality.
Purchase price or market value of the property | BSD rates for residential properties | BSD rates for non-residential properties |
---|---|---|
First $180,000 | 1% | 1% |
Next $180,000 | 2% | 2% |
Next $640,000 | 3% | 3% |
Next $500,000 | 4% | 4% |
Next $1,500,000 | 5% | 5% |
Remaining amount | 6% | - |
Example:
A condo was purchased on 20 February 2023 at $5,000,000 which is the actual market value.
Market Value of the Property | BSD Rate | Calculation | |
---|---|---|---|
First $180,000 | 1% | = $1,800 (1% x $180,000) | |
Next $180,000 | 2% | = $3,600 (2% x $180,000) | |
Next $640,000 | 3% | = $19,200 (3% x $640,000) | |
Next $500,000 | 4% | = $20,000 (4% x $500,000) | |
Next $1,500,000 | 5% | = $75,000 (5% x $1,500,000) | |
Remaining $2,000,000 | 6% | = $120,000 (6% x $2,000,000) | |
BSD Payable | = $239,600 |
Visit the IRAS website for the latest update on BSD.
Additional Buyer Stamp Duty (ABSD)
The Additional Buyer’s Stamp Duty (ABSD) is an additional tax payable in addition to the Buyer’s Stamp Duty (BSD) when purchasing a residential property in Singapore.
The ABSD applies to all buyers, including Singapore citizens, permanent residents, and foreigners. It is calculated based on the purchase price or market value of the property, whichever is higher.
The ABSD rates are higher for certain categories of buyers, such as foreigners, entities, and trusts, as well as for additional properties purchased by the same buyer.
Buyers who are Singapore citizens and are purchasing their first property are not subject to the ABSD.
SC – Singapore Citizens
SPR – Singapore Permanent Residents
RP – Residential Property
Profile of Buyer | ABSD Rates |
---|---|
SC buying first RP | N.A. |
SC buying second RP | 20% |
SC buying third & subsequent RP | 30% |
SPR buying first RP | 5% |
SPR buying second RP | 30% |
SPR buying third & subsequent RP | 35% |
Foreigners buying any RP | 60% |
Entities buying any RP | 65% |
Housing Developers buying any RP | 35% + 5% (non remittable) |
Trustee buying any RP | 65% |
Example:
A foreigner purchased a condo on 20 May 2023 at the market value of $5,000,000. ABSD payable is $3,000,000 (60% of $5,000,000).
NOTE:
1) Under the respective FTAs, Nationals or Permanent Residents (PRs) of the following countries will be accorded the same Stamp Duty treatment as Singapore Citizens when buying residential properties:
- Nationals & PRs of Iceland, Liechtenstein, Norway or Switzerland
- Nationals of the United States of America
2) Remission of ABSD (Trustee purchase) is possible under certain conditions.
Visit the IRAS website for the latest update on ABSD.
Seller Stamp Duty (SSD)
Seller’s Stamp Duty (SSD) is a tax that is payable by sellers of properties in Singapore. The SSD is calculated based on the sale price of the property or the market value of the property, whichever is higher.
The SSD is only applicable if the property is sold within a certain period of time from the date of purchase, known as the holding period.
The rate payable is the same for every seller, regardless of nationality.
Date of purchase or date of change of zoning / use | Holding Period | SSD rate |
---|---|---|
On and after 11 March 2017 | Up to 1 year | 12% |
More than 1 year & up to 2 years | 8% | |
More than 2 years & up to 3 years | 4% | |
More than 3 years | No SSD payable |
Example:
A condo was purchased on 17 March 2017 & sold on 1 February 2018 for $5,000,000.
The holding period is less than 1 year.
SSD payable is $600,000 (12% x $5,000,000).
Visit the IRAS website for the latest update on SSD.
Total Debt Servicing Ratio (TDSR)
The Total Debt Servicing Ratio (TDSR) is a debt servicing framework first introduced by the MAS in 2013 to ensure that borrowers do not take on more debt than they can afford to repay, and to help prevent a housing market bubble.
It sets a limit on the amount of debt a borrower can take on based on their income and existing debts.
Under the TDSR framework, a borrower’s total monthly debt obligations, including mortgage payments, cannot exceed 55% of their monthly income.
For example, if a borrower has a monthly income of SGD 10,000, their total monthly debt obligations, including mortgage payments, cannot exceed SGD 5,500.
The TDSR framework applies to all housing loans, including loans for the purchase of residential properties, and refinancing loans. For refinancing loans, TDSR is only applicable for investment property loans.
Visit the MAS website for the latest update on TDSR.
Mortgage Servicing Ratio (MSR) – HDB ONLY
Mortgage servicing ratio (MSR) refers to the portion of a borrower’s gross monthly income that goes towards repaying all property loans, including the loan being applied for.
MSR is capped at 30% of a borrower’s gross monthly income.
It applies only to housing loans for the purchase of an HDB flat, or an executive condominium where the minimum occupation period of the executive condominium has not expired.
Visit the MAS website for the latest update on MSR.
Loan Tenure & Loan-to-Value Limits (LTV)
The maximum housing loan borrowers can take depends on their age, loan duration and property type, and whether they have existing housing loans. Joint borrowers are assessed using an income-weighted average age.
Loan Tenure
The maximum loan tenure for housing loans is capped at:
- 30 years for HDB flats (25 years if it is an HDB loan)
- 35 years for non-HDB properties
Loan-to-Value Limits
The loan-to-value (LTV) limit determines the maximum amount an individual can borrow from a financial institution (FI) for a housing loan.
LTV refers to the loan amount as a percentage of the property’s value. For example, if an individual borrows $150,000 to purchase a property valued at $1,000,000, the LTV is 15%.
The LTV limits for individuals change depending on the number of outstanding housing loans a borrower has.
The following LTV limits apply for loans on residential properties:
Outstanding housing loans | LTV limit | Min. cash downpayment |
---|---|---|
None | 75% or 55% | 5% (for LTV of 75%) or 10% (for LTV of 55%) |
1 | 45% or 25% | 25% |
2 or more | 35% or 15% | 25% |
Apply the lower LTV limit if the loan tenure exceeds 30 years (or 25 years for HDB flats) or if the loan period extends beyond the borrower’s age of 65 years.
Visit the MAS website for the latest update on LTV.
WHAT BRINGS YOU HERE TODAY?
Are you wondering what to do in today’s market?
Perhaps you already have a clear mind of what you want to do?
In my blog, I often share stories of the challenges, triumphs, and lessons learned in my work as a real estate agent in Singapore.
Regardless of your situation, you can use me as a sounding board. I’ll provide perspective and clarity from my experience.