Monday, March 22, 2010

1st look at Market Trends affecting Singapore Property Market

2010

Feb 22nd - Government Budget 2010, changes in property tax calculation, will now be a tiered taxation structure as opposed to old flat rate set way back in 1994.

The tax rate for owner-occupiers will be adjusted from the current 4% flat rate to:
  • 0% for the first $6,000 of Annual Value
  • 4% for the next $59,000 of Annual Value
  • 6% cent for the balance of Annual Value in excess of $65,000

Non-owner-occupied residential properties and other properties are taxed at 10%.Th Budget 2010 speech

Feb 20th - Government introduce measures to contain property speculation to temper sentiments and pre-empt a property bubble from forming. Introducing a Seller’s Stamp Duty (SSD) on all residential properties and residential lands that are bought after today and sold within 1 year from the date of purchase. Lowering the Loan-to-Value (LTV) limit to 80% for all housing loans provided by financial institutions regulated by the Monetary Authority of Singapore (MAS).

2009

Sep - The Government introduce measures to temper the exuberance in the private residential market. The removal of Interest Absorption Scheme (IAS) and Interest-Only housing loans, resumption of the Confirmed List under the Government Land Sales Programme in 1st Half of 2010 and non-extension of property-related measures announced as part of Budget 2009 which expired in Jan 2010.

2008

Property sales plunge.

2007

Oct 26th - Withdrawal of Defferred Payment Scheme for the sale of uncompleted private residential and commercial properties.

2006

Dec - Stamp duties for buyers implemented, must be paid within 14 days of the date of acceptance of Option.

Oct - The 1st Public Housing Project under the Design, Build & Sell Scheme (DBSS) launched for sale.

2005

Jul - Loan-to-Value Limit raised from 80% to 90%.

Cash payment for residential properties reduced from 10% to 5%.

Non-related singles allowed to use their CPF to jointly buy private properties.

Apr - Government announces plans to build 2 Integrated Resorts.

2004

Dec - Tsunami Tragedy.

Aug - Foreigners allowed to buy land in Sentosa Cove.

2003

Jul - Formation of HDB Corp = Public Housing building programme.

Outbreak of SARs

The Gulf war = Property prices plunges.

CPF minimum sum raised to S$80,000.

2002

Sep - For EC purchase, 10% of downpayment must be in cash and balance 10% can be paid using CPF.

2001

Oct - Capital gains lifted. Foreigners allowed to use S$ for housing loans.

Sep 11th - Terrorist attack on New York World Trade Centre.

Dotcom bubble burst.

2000

Jun - HDB owners required to seek approval before booking of private property even if 5 year time bar fulfilled.

1998

Stamp duties for buyers of uncompleted properties until TOP or subsequent sale.

More anti speculation policy reversal.

1997

Stamp duties for sellers suspended.

Reversal of Anti speculation policy implemented in 1996.

The Asian financial crisis = Property prices plunges.

HDB mortgage pegged to bank rates.

HDB owners allowed to book a new private property only after occupying the flat for 5 years.


1996

May - Anti speculation measures implemented, 80% financing restriction for property purchase.

Feb - Property prices peaked to it's historical level.

1995

Aug - HDB introduces EC, Executive Condominium costing 10% les than 99 year lease condos.

1993

CPF relax rules on withdrawal amounts.

HDB relax rules, buyers allowed to take higher mortgages = Property prices soar.

1991

Oct - HDB introduces scheme, allow singles citizens above 35years old to buy 3room flats.

1990

Gulf War = Property prices falls.

1989

HDB relax rules, PRs allowed to buy HDB flats.

HDB relax rules, HDB owners allowed to invest in private property.

1988

Nov - CPF increased withdrawal limit from 80% to 100% of the value of the property = Property price rises.

1987

CPF implements Minimum Sum Scheme to ensure retirement income for Singaporeans.

1984

Economic recession = Property prices plunge.

1981

CPF implements scheme for private home ownership allowing Singaporeans to use 80% of their CPF ordinary account to buy property = Property price rises 300% to 400%.


1976


Residential Property Act introduced = Foreigners allowed to buy flats of 6 levels or higher.


1974

Oil Crisis = Property prices plunge.

1973

Foreigners not allowed to buy residential properties.

1968

CPF implement Public Housing Schemes for home ownership.

1960

Property Tax introduced.

Formation of HDB to provide low cost subsidised housing for Singaporeans.




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