Since 2009, the Government has introduced at least 15 rounds of property cooling measures to ensure homes remain affordable, as well as to curb speculation in Singapore’s property market.
Despite this, both HDB flats and private properties have enjoyed healthy price appreciations over the same period. Resale HDB flats have climbed about 86% since 2009, while private property prices have spiked 113% in the same period.
While property prices appreciated over time, the various cooling measures were introduced to prevent the market from overheating and reduce the risk of a crash. Furthermore, the measures that targeted borrowing also curbed speculation, supporting for a more sustainable growth.
Here’s a more detailed history of when and what the property cooling measures that were introduced in Singapore are.
September 2009: Removal of Interest Absorption Scheme (IAS) and Interest-Only Scheme (IOS)
The main features of Singapore’s property cooling measures, against the backdrop of the Global Financial Crisis, was to remove the Interest Absorption Scheme (IAS) and the Interest-Only Scheme (IOS).
The Interest Absorption Scheme (IAS) allowed property buyers, who after making an initial upfront downpayment, to defer making any instalments on the loan until they units were completed. Prior to this completion, the bank would only require interest payments, and the developers would pay these interest payments.
Similarly, the Interest-Only Scheme (IOS) is a home loan that does not require repayments on the loan principal.
For uncompleted properties, the interest-only period was typically offered until the properties were completed (i.e. issued a Temporary Occupation Permit (TOP)).
February 2010: Seller’s Stamp Duty Was Introduced; LTV Limits Lowered
A Seller’s Stamp Duty (SSD) was introduced on all residential properties and lands bought on or after 20 Feb 2010, and sold within one year from the date of purchase. This would be:
– 1% for the first $180,000
– 2% for the next $180,000
– 3% for the balance
The LTV limits were also lowered from 90% to 80% for all bank home loans, including for private residential properties, Executive Condominiums (ECs), HUDC flats and HDB flats, including DBSS flat.
August 2010: Increase Seller’s Stamp Duty From 1 Year To 3 Years; More Restrictions For Existing Property Owners
The Seller’s Stamp Duty (SSD) would be payable for any properties sold within 3 years, instead of 1 year.
At the same time, property buyers who already had an existing home loan had to pay down a minimum of 10% in cash (compared to 5% previously), and would see their LTV decreased from 80% to 70%.
Read Also: Seller’s Stamp Duty: How Much You Have To Pay If You Sell Your Property Within 3 Years
January 2011: Holding Period For SSD Raised to 4 Years; SSD Rates Raised;
The holding period for the Seller’s Stamp Duty (SSD) was raised from 3 years to 4 years. The rates of the SSD was also raised to:
– 16% if sold in the first year
– 12% if sold in the second year
– 8% if sold in the third year
– 4% if sold in the fourth year
December 2011: Additional Buyer’s Stamp Duty (ABSD) Introduced
One of the most “expensive” property cooling measures was introduced in December 2011, and applied to foreigners and non-individuals (10%); and Singapore Permanent Residents buying their 2nd residential property (3%); and Singaporeans buying their 3rd residential properties (3%).
October 2012: Maximum Loan Tenure Capped At 35 Years; Tighter LTV For Loans Exceeding 30 Years
A new limit of 35 years applied to all residential property loans for both individuals and non-individuals. For those who were refinancing, the new loan period + the number of years when the first loan was granted could not add to more than 35 years.
The LTV was also reduced for individuals who had a loan tenure of more than 30 years or was more than 65 years old when their loans would be finished:
– For borrowers with no existing property loan: 60% (compared to 80% previously)
– For borrowers with existing home loans: 40% (compared to 60% previously)
– For non-individual borrowers, the LTV ratio was lowered to 40% (compared to 50% previously)
January 2013: ABSD Raised; LTV Limits Tightened
ABSD rates were raised across the board:
– Singaporeans buying their 2nd residential property: 7%
– Singaporeans buying their 3rd and subsequent residential property: 10%
– PRs buying their 1st residential property: 5%
– PRs buying their 2nd and subsequent residential property: 10%
– Foreigners buying any residential property: 15%
– Non-individuals buying any residential property: 15%
At the same time, LTV limits were also tightened:
– For borrowers getting a second housing loan: 50% (compared to 60% previously); if loan tenure exceeds 30 years or beyond age 65, then LTV to be 30%
– For borrowers getting third and subsequent housing loan: 40% (compared to 60% previously); if loan tenure exceeds 30 years or beyond age 65, then LTV to be 20%
– For non-individual borrowers: 20% (compared to 40% previously)
– Borrowers getting second or subsequent home loans to pay down a minimum of 25% in cash
June 2013: Introduction of TDSR Framework
The Total Debt Servicing Ratio (TDSR) takes into consideration all debt when determining how much individuals can borrow to buy their property. This limit was set at 60% of their gross monthly income.
March 2017: SSD Reduced to 3 Years Period
As the number of property sales within the 4-year window fell significantly, the Government revised the SSD period down to 3 years (from 4 years previously). The new SSD rates was:
– 12% if sold in the first year
– 8% if sold in the second year
– 4% if sold in the third year
July 2018: Raising ABSD; Tightening LTV Ratio
The ABSD rate was increased:
– Singaporeans buying their 2nd residential property: 12%
– Singaporeans buying their 3rd and subsequent residential property: 15%
– PRs buying their 2nd and subsequent residential property: 15%
– Foreigners buying any residential property: 20%
– Non-individuals buying residential property: 25%
– Developers buying for housing development: Addition 5% ABSD
LTV limits were also tightened for bank loans:
– Individuals taking their first home loan: 75% (from 80% previously); 55% if the loan tenure exceeds 30 years or extends past age 65
– Individuals taking a second home loan: 45% (from 50% previously); 25% if the loan tenure exceeds 30 years or extends past age 65
– Individuals taking a third and subsequent home loan: 35%; 15% if the loan tenure exceeds 30 years or extends past age 65
– Non-individual borrowers: 15%
December 2021: Yet Higher ABSD; Borrowing Limit Was Tightened
The ABSD rate was increased again:
– Singaporeans buying their 2nd residential property: 17%
– Singaporeans buying their 3rd and subsequent residential property: 25%
– PRs buying their 2nd residential property: 25%
– PRs buying their 3rd and subsequent residential property: 30%
– Foreigners buying any residential property: 30%
– Non-individuals buying residential property: 30%
The TDSR was also tightened from 60% to 55%, while the LTV ratio for HDB loans was reduced from 90% to 85%.
September 2022: Borrowing Limits Tightened; 15-Month Wait Out Period for Private Property Owners Who Want To Buy HDB Flats; Lower LTV Limit For HDB Flats
There was a higher assumed interest rate for assessing borrowers’ repayment ability to compute the TDSR and MSR:
– Residential property: 4% p.a.
– Non-residential property 5% p.a.
HDB introduced an interest rate floor of 3% for computing eligible loan amounts.
The LTV Limit for HDB flats was also lowered from 85% to 80%.
April 2023: ABSD Revised Upwards Again
The ABSD was revised higher again. This time, foreigners had to pay 60% ABSD.
– Singaporeans buying their 2nd residential property: 20%
– Singaporeans buying their 3rd and subsequent residential property: 30%
– PRs buying their 2nd residential property: 30%
– PRs buying their 3rd and subsequent residential property: 35%
– Foreigners buying any residential property: 60%
– Non-individuals buying residential property: 65%
August 2024: LTV Limit For HDB Loan Lowered To Be Same As Bank Loan
During the latest round of property cooling measures, the LTV limit for HDB loans was lowered to 75% – in line with current rates for those taking bank loans.
As mentioned at the start of the article this was done together with a raise in the Enhanced Housing Grant (EHG) to ensure homebuyers can continue to make their downpayment on their home, without extending themselves.
July 2025: Holding Period Of Seller’s Stamp Duty (SSD) And SSD Rates Reverts To Pre 2017 Structure For Residential Properties
In a move that caught many market observers by surprise, the government announced the latest round of property cooling measures on 3 July 2025. The Seller’s Stamp Duty (SSD) holding period will extended from 3 to 4 years and the SSD rates will be raised by 4 percentage points across all tiers – similar to pre-2017 structure.
These changes are effective for all residential properties purchased on or after 4 July, 12am except HDB flats due to the minimum occupation period (MOP) requirement.
New SSD Schedule:
| Holding Period | Rates from 11 March 2017 to 3 July 2025 | Rates on and after 4 July 2025 |
| Up to 1 year | 12% | 16% |
| More than 1 year but up to 2 years | 8% | 12% |
| More than 2 years but up to 3 years | 4% | 8% |
| More than 3 years but up to 4 years | 0% | 4% |
| More than 4 years | 0% | 0% (no change) |
Source: MAS
Read Also: Seller’s Stamp Duty: How Much You Have To Pay If You Sell Your Property Within 4 Years
