Property cooling measures: Govt announces tighter loan rules, private home owners can't buy HDB resale flats for 15 months
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Loading... - Chiyo Gato
- 30 Sep 2022
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In a bid to moderate demand for public housing, the authorities have announced that private property owners will now have to serve a temporary wait-out period of 15 months after selling their homes before they are allowed to purchase a non-subsidised resale flat.
In addition, new rules have also been announced to tighten maximum loan quantum limits for housing loans to promote prudent borrowing by home-seekers amid rising interest rates.
The loan-to-value limit for Housing and Development Board (HDB) loans will also be lowered from 85 per cent to 80 per cent.
These new measures were announced by the Monetary Authority of Singapore, Ministry of National Development (MND) and the HDB in a joint statement late on Thursday (Sept 29) night, about 20 minutes before they took effect at midnight.
15-MONTH WAIT-OUT PERIOD
The authorities said that since the Government implemented a broad package of measures in December 2021, the HDB Resale Price Index has increased by more than 5 per cent as at the end of June 2022, which reflected a broad-based increase in public housing demand.
As a means to tackle this “clear upward momentum in HDB resale prices”, the Government will introduce a wait-out period of 15 months for both current and former private residential property owners to buy a non-subsidised HDB resale flat.
Prior to the announcement, both current and former private property owners were allowed to buy a non-subsidised HDB resale flat on the open market, with the requirement that they dispose of their private properties within six months of the HDB flat purchase. Read More…
