Singapore Property Cooling Measures

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.

  • Rules can suddenly change. Please refer to the government websites for confirmation.

Buyer Stamp Duty (BSD)

  • Last Revised: 15 Feb 2023

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)

  • Last Revised: 27 Apr 2023

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:

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)

  • Last Revised: 11 Mar 2017

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)

  • Last Revised: 16 Dec 2021

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

  • Last Revised: 16 Dec 2021

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)

  • Last Revised: 6 Jul 2018

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.

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