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Thread: What is Property Market Cooling Measure?

  1. #1

    Default What is Property Market Cooling Measure?

    Dear all,

    I need help and need to understand, What is Property Market Cooling Measure?

    Can someone explain to me? In a simple terms

    Thanks

  2. #2
    Senior Member G-man's Avatar
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    Measures taken to prevent prices of property getting out of hand (too high), thus leading to a property bubble.

  3. #3

    Default Re: What is Property Market Cooling Measure?

    Quote Originally Posted by G-man View Post
    Measures taken to prevent prices of property getting out of hand (too high), thus leading to a property bubble.
    I see, but how they prevent?

    According to ( http://www.srx.com.sg/cooling-measures ) what i understand is they revise the rules for Singapore resident, PR and Foreigners of buying a property, no?

    Sorry i very confuse about all these, would glad if you could explain to me
    Last edited by GeneralApex; 31st October 2014 at 11:28 AM.

  4. #4
    Senior Member G-man's Avatar
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    Default Re: What is Property Market Cooling Measure?

    Well the answer is in the link you provided no?

  5. #5

    Default

    Quote Originally Posted by GeneralApex View Post

    I see, but how they prevent?

    According to ( http://www.srx.com.sg/cooling-measures ) what i understand is they revise the rules for Singapore resident, PR and Foreigners of buying a property, no?

    Sorry i very confuse about all these, would glad if you could explain to me
    Read the link. The answers are all there.

    Basically, a buyer and seller are penalised with stamp duties. Nothing is free in SG

  6. #6
    Senior Member Big Kahuna's Avatar
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    Also there is this total debt serving ratio that limit the borrowers debt repayment amount, it cannot be more than 60% of their income, that including ur housing, credit card, car installment etc, the effect is if u make $10k per month, u can only use $6k to serve all the above and bank will minus off all ur liability before they grant u the loan.

  7. #7

    Default Re: What is Property Market Cooling Measure?

    Quote Originally Posted by donut88 View Post
    Read the link. The answers are all there.

    Basically, a buyer and seller are penalised with stamp duties. Nothing is free in SG
    Can i say that for ABSD is the extra rate charges for buying property?

    For Citizen
    1st house = Nil
    2nd house = 7%
    3rd house = 10%

    Then for SSD means selling property within one year that will consume by this policy?

    1st year = 16%
    2nd year = 12%
    3rd year = 8%
    4th year = 4%

    finally LTV means the loan percentage that can borrowed from Bank to buy a property?

    Citizen = 80% for 30 Years loan with 10% down payment? 5% Cash and 5% CPF?
    but what about the other 10%?

    Can clarify this for me? Thanks

  8. #8

    Default Re: What is Property Market Cooling Measure?

    In short its designed to dampen the demand and the frequency of property sales.
    But Sg average temperature still 30ish.. how to cool ah ?

  9. #9

    Default Re: What is Property Market Cooling Measure?

    If everyone keeps their jobs, and the economy doesn't tank, prices of private homes won't budge much..
    Nikon D750; FM2; FG; 55mm Micro Nikkor; 28-300 VR; 70-200 VR; Nikon V1 + 10-30mm

  10. #10

    Default Re: What is Property Market Cooling Measure?

    Sorry all, can explain to me, what i understand now for buying a property in Singapore as Citizen, property more than $360K there are a 3% duty stamp to be paid and a legal fee of $3k to be paid, then Citizen can go to bank loan up to max 80% @ rate about 3.5% - 4.5%, so my question is:

    1) how much down payment are to be made?
    2) 80% bank loan, what about the rest of the % after deduction of downpayment?
    3) Bank loan also use part of our CPF to pay right?

    Thanks

  11. #11
    Senior Member melvin's Avatar
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    Default Re: What is Property Market Cooling Measure?

    Quote Originally Posted by GeneralApex View Post
    Dear all,

    I need help and need to understand, What is Property Market Cooling Measure?

    Can someone explain to me? In a simple terms

    Thanks

    In simple terms it means:

    property market caught fire ... government step in to fight fire lo...

  12. #12
    Senior Member melvin's Avatar
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    Default Re: What is Property Market Cooling Measure?

    Quote Originally Posted by GeneralApex View Post
    Can i say that for ABSD is the extra rate charges for buying property?

    For Citizen
    1st house = Nil
    2nd house = 7%
    3rd house = 10%

    Then for SSD means selling property within one year that will consume by this policy?

    1st year = 16%
    2nd year = 12%
    3rd year = 8%
    4th year = 4%

    finally LTV means the loan percentage that can borrowed from Bank to buy a property?

    Citizen = 80% for 30 Years loan with 10% down payment? 5% Cash and 5% CPF?
    but what about the other 10%?

    Can clarify this for me? Thanks
    Quote Originally Posted by GeneralApex View Post
    Sorry all, can explain to me, what i understand now for buying a property in Singapore as Citizen, property more than $360K there are a 3% duty stamp to be paid and a legal fee of $3k to be paid, then Citizen can go to bank loan up to max 80% @ rate about 3.5% - 4.5%, so my question is:

    1) how much down payment are to be made?
    2) 80% bank loan, what about the rest of the % after deduction of downpayment?
    3) Bank loan also use part of our CPF to pay right?

    Thanks
    It will be better that if you consult the someone in the industry ... sure they are easily available. Much faster then asking here.
    Last edited by melvin; 31st October 2014 at 08:48 PM.

  13. #13

    Default Re: What is Property Market Cooling Measure?

    Quote Originally Posted by GeneralApex View Post
    Sorry all, can explain to me, what i understand now for buying a property in Singapore as Citizen, property more than $360K there are a 3% duty stamp to be paid and a legal fee of $3k to be paid, then Citizen can go to bank loan up to max 80% @ rate about 3.5% - 4.5%, so my question is:

    1) how much down payment are to be made?
    2) 80% bank loan, what about the rest of the % after deduction of downpayment?
    3) Bank loan also use part of our CPF to pay right?

    Thanks
    1) Depends. Whether you have any outstanding loans.

    Minimum Cash Down Payment
    3 The current minimum cash down payment required of individual borrowers who have one or more outstanding housing loans and are obtaining second or subsequent housing loans is 10% of the valuation limit.
    4 With effect from 12 January 2013, the minimum cash down payment required for such individuals will be raised to 25%. There is no change to the existing minimum cash down payment requirement for individual borrowers who have no outstanding housing loans and are applying for a housing loan.

    http://www.mas.gov.sg/~/media/resour...Annex%20II.pdf
    2) Since you can't loan anymore, the rest has to be cash, if not gold ingots.

    3)
    CPF can be used to purchase private property, so long as: (1) the property is freehold, or (2) there’s at least 30 years left on the lease.

    If there’s 60 years or less on the lease, then the lease must have at least 30 years left, and last till the buyer is 80 years old.

    http://blog.moneysmart.sg/saving/wha...es-retirement/
    Disclaimer: Not an expert, read at your own risk

  14. #14

    Default Re: What is Property Market Cooling Measure?

    Quote Originally Posted by melvin View Post
    It will be better that if you consult the someone in the industry ... sure they are easily available. Much faster then asking here.
    seriously, i wonder why some people think that generic forums (e.g. Kopitiam) are the best places to find extremely targeted information?

    rather than head to the nearest bank, or call someone to ask... you choose to take the longest route out?




  15. #15

    Default Re: What is Property Market Cooling Measure?

    Quote Originally Posted by petetherock View Post
    If everyone keeps their jobs, and the economy doesn't tank, prices of private homes won't budge much..
    Precisely, many Singaporeans especially the potential buyers are praying very hard that the property prices will collapse like 40-50%. How do we have this kind of fall even with so many rounds of cooling measures?

    We can only see such magnitude fall in a recession or financial crisis such as in 1997 or 2007 whereby businesses bankrupted and people lost their jobs.

    Given current backdrop, it is already very good if prices fall by 5-10%. Do you think that the sellers will sell their properties at lelong prices? Get real. On top of that, demand is still very strong especially from overseas buyers. Now that Japan Central Bank has announced greater QE, more cheap money will be flowing around the world. Singapore will definitely benefit given our safe haven status for investors.

    For those who wish that property prices will collapse, then it would better to pray hard that the world is in a financial turmoil or recession, so that many businesses and people in Singapore will go either bankrupt or lose their jobs.

  16. #16

    Default Re: What is Property Market Cooling Measure?

    actually the prices has already fallen if u are in the market.... and by quite a bit.

  17. #17

    Default Re: What is Property Market Cooling Measure?

    Yeah, if prices tank, it probably loss of jobs, and those praying for a massive drop might be the ones laid off too... food for thought..
    Quote Originally Posted by Jedi View Post
    Precisely, many Singaporeans especially the potential buyers are praying very hard that the property prices will collapse like 40-50%. How do we have this kind of fall even with so many rounds of cooling measures?

    We can only see such magnitude fall in a recession or financial crisis such as in 1997 or 2007 whereby businesses bankrupted and people lost their jobs.

    Given current backdrop, it is already very good if prices fall by 5-10%. Do you think that the sellers will sell their properties at lelong prices? Get real. On top of that, demand is still very strong especially from overseas buyers. Now that Japan Central Bank has announced greater QE, more cheap money will be flowing around the world. Singapore will definitely benefit given our safe haven status for investors.

    For those who wish that property prices will collapse, then it would better to pray hard that the world is in a financial turmoil or recession, so that many businesses and people in Singapore will go either bankrupt or lose their jobs.
    Nikon D750; FM2; FG; 55mm Micro Nikkor; 28-300 VR; 70-200 VR; Nikon V1 + 10-30mm

  18. #18

    Default Re: What is Property Market Cooling Measure?

    Quote Originally Posted by petetherock View Post
    Yeah, if prices tank, it probably loss of jobs, and those praying for a massive drop might be the ones laid off too... food for thought..
    Yes, these people only wanted property prices to crash but they fail to understand under what circumstances will the property prices collapse. I have seen with my own eyes on the winners and losers during a real property market crash. This is quite scary.

  19. #19
    Senior Member Sion's Avatar
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    Default Re: What is Property Market Cooling Measure?

    Quote Originally Posted by kei1309 View Post
    seriously, i wonder why some people think that generic forums (e.g. Kopitiam) are the best places to find extremely targeted information?

    rather than head to the nearest bank, or call someone to ask... you choose to take the longest route out?
    The banks only have their self-interests at heart which is to profit from you losing your home.

    But the KPT forumers care about them and speak with the voice and compassion of the common people.
    Last edited by Sion; 5th November 2014 at 07:10 PM.

  20. #20
    Member armadillo's Avatar
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    Default Re: What is Property Market Cooling Measure?

    Also we know there are many experts in KPT
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