Singapore Entrepreneur - Latest 2011 Property Cooling Measures

"The government has announced on Thursday (13 Jan 2011) the fourth round of property cooling measures to 'maintain a stable and sustainable property market'.

They include:

1) Increasing the holding period for imposition of Seller's Stamp Duty (SSD) from the current three years to four years;

2) Raising the SSD rates to 16 per cent, 12 per cent, 8 per cent and 4 per cent of consideration for residential properties which are bought on or after Friday, and are sold in the first, second, third and fourth year of purchase respectively;

3) Lower the Loan-To-Value (LTV) limit to 50 per cent on housing loans granted by financial institutions regulated by MAS for property purchasers who are not individuals

4) Lower the LTV limit on housing loans granted by financial institutions regulated by the Monetary Authority of Singapore from 70 per cent to 60 per cent for property purchasers who are individuals with one or more outstanding housing loans at the time of the new housing purchase.

The measures will take effect on Friday. "

Copyright © 2010 Singapore Press Holdings. All rights reserved.

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The news is finally released after some long anticipation. It is going to be a hot topic for the next few days. I am rather surprised that they are releasing it so early and implementing it almost immediately. It looks like the government is really hot behind the heels of property speculators. It is certainly going to irritate some investors and put off many people out of the property market. But, it's better to do it now then later. Remember, it's a year of the General Election. This is expected to be held after the 2nd half of the year. It is understandable for the government to impose the rule early to allow negative sentiments to subside in 6 months. Afterall, people would start to realize and appreciate that their dear government is doing it for everyone's good.

If you have been picking up the newspapers daily for the last couple of months, you would have realized that many pleasant news and plans are being published. Big plans like rejuvenating old heartlands like Hougang and Balestier, new MRT extension to Tuas area and big Budget surplus to benefit most lower income people. In my neighbourhood, there are ongoing sprucing up of roads and pavements, and even the HDB blocks around getting a new fresh coat of paint after 5 years.

I guess everyone should know what to do when the time comes, right? Who else can we choose...?