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Government to introduce new tax and lower loan limit to cool private property market
By Mustafa Shafawi, Channel NewsAsia | Posted: 19 February 2010 1752 hrs
SINGAPORE: The Government has introduced more measures to temper sentiments and pre-empt a property bubble from forming in the private residential market.
The first measure is a Seller's Stamp Duty on all residential properties and residential lands that will be bought after Friday and sold within one year from the date of purchase.
The Ministry of National Development said the objective of this new tax measure is to discourage short-term speculative activity that could distort underlying prices. It is not targeted at the purchase of properties for owner-occupation or longer term investment.
The second measure is a lower Loan-to-Value limit. The limit will be 80 per cent instead of 90 per cent for all housing loans provided by financial institutions regulated by the Monetary Authority of Singapore (MAS).
The measures will take effect Saturday. |
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