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Govt announces cooling measures for private, HDB properties kicking in from Dec 16

Prices for both public and private housing have continued to rise over two years despite the economic challenges brought on by the Covid-19 pandemic. 

Prices for both public and private housing have continued to rise over two years despite the economic challenges brought on by the Covid-19 pandemic. 

In a bid to cool the housing market, the loan-to-value limits for home buyers taking a property loan from the Housing and Development Board (HDB) will be tightened, and the Additional Buyer's Stamp Duty (ABSD) for the purchase of private properties beyond the first one will increase, the Government announced at about 11.30pm on Wednesday (Dec 15). 

 

The Total Debt Servicing Ratio (TDSR), which applies to all property loans, will also be lowered from the current 60 per cent to 55 per cent. This means that a person's total monthly loan payments, including mortgage loans, cannot exceed 55 per cent of his or her total gross income. 

These curbs, which will take effect from Thursday, came after months of market speculation.

Prices for both public and private housing have continued to rise over the past two years despite the economic challenges brought on by the Covid-19 pandemic. 

The last round of such curbs happened in July 2018, but the changes then affected only private properties. It triggered a buying frenzy after the announcement was made in the evening. 

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