Singapore’s Property Price Trend Since Cooling Measures in 2009 | Singapore Property Cooling Measures
An individual may have heard several times that in 2009 Singapore is adopting various ‘property cooling measures’. do you know what this cooling is about ? Why so many people are concerned about this ? You must concern to know about the various Singapore’s Property Price Trend Since Cooling Measures in 2009. As this helps the market to get stable. Thus, go through this description and learn how Singapore market deal with their crises. Also learn about the various ,measures taken by the government in improving market. Other countries can also introduce several measures regarding stabling their market conditions.
Singapore’s Property Price Trend Since Cooling Measures in 2009:
Hence, it is important to know first what is the meaning of these cooling measures. The word cooling measure implemented to serve the moderate demand for the residential properties while increasing supply. This measure prevents the speculative buying and also mitigate the rate of increase in the prices. Hence, this might result in the soaring of the prices and a risk of correction in the future.
However, besides these measures this place also promote the home ownership and prevent the over borrowing. As this is the main cause of the 2008 Global Financial Crisis. Hence, it is very essential to note the every round of the cooling measures. Which takes into consideration of the residential property market. Hence, the cooling measures are as follows:
|Citizen Type||Buying 1st Residential Property||Buying 2nd Residential Property||Buying 3rd Subsequent and Residential Property|
|Singapore Permanent Resident||5%||10%||10%|
|Foreigners and Non Individuals||15%||15%||15%|
In Singapore latest measures are being introduced on 10 March 2017. Hence, since 2009 there has been approx 9 rounds of the property cooling measures.
Singapore Various Cooling Measures Since 2009:
From the year 2009, Singapore introduced many cooling measures.
Additional Buyer’s Stamp Duty (ABSD):
Additional Buyer’s Stamp Duty (ABSD) was introduced on the 8 December 2004.This was a tax which is imposed on the buyer. Hence, those buyers who purchase more than one land have to bear this tax.
However, in the latest announcement of the cooling measures government had decided to maintain the current ABSD rates. Hence, due to this reason transaction volumes within the residential property market has remained stable. Thus, demand for the private residential are very strong and continue to grow.
Total Debt Servicing Ratio (TDSR):
The main aim of this measure is to encourage the borrowing of the household and protecting the credit underwriting of the financial institutions. Loans of the property are extended by the financial institutions under this scheme. But according to the government they receive feedback from the few borrowers. However, now TDSR frame work is not applied on the mortgage equity or withdrawal loans ratio below 50%.
Seller Stamp Duty (SSD):
This measure is for those people who sell their residential property within the 4 year purchase of the property. In this the tax rate is start from 4% to 16% of the property value.
However, this is an effective measure for those individuals who all are looking to flip their properties. Hence, since the introduction of this measure number of sales transacted has dropped down.
Thus, these cooling measures are remain necessary for the convenient and stable residential market. These measures were beneficial for the market. As these helps in stabilizing of the market. So these are few Singapore’s Property Price Trend Since Cooling Measures in 2009. Hence, this makes the market stable.
Other countries can also introduced some measures for making their market stable. As they can also gain certain benefits on the residential and commercial areas. Hence, through these measures Singapore has improved its market. However, there are various cases when its price fall down and grown up. But the demand for the properties always remain same i this market.