Shortly after MND announced the latest round of cooling measure on 11 January, I received a call from my cobroke agent that La Fiesta, a private condominium located next to Sengkang MRT, will open for sale with immediate effect.
I will summarise and present tables for ease in comprehending what this 7th round of cooling meaure is all about below.
Meanwhile, please indulge me by allowing me to pen down my participation of the La Fiesta’s ‘madness’ on the night of 11 January, which I believe has been reported in all the newspapers.
The soft launch for La Fiesta was originally planned for 15 January, and my buyer has already registered his interest to book a 1 bedroom unit there.
I immediately contacted my buyer, and once he affirmed he will go down to showflat, I rushed down and was amongst the early batch to arrive.
With no information at all on how the sale is to be carried out, except that it is on a first come first serve basis, we have to base on our gut feel and everyone starting crowding round the entrance to the showflat.
Suffice to say when it was finally time to enter into showflat, the crowd has grown so massive that the ugly side of human nature would show. There were cries of being pushed, banged against, or scratched against the glass door.
The glass was in danger of giving way, with the human force.
My buyer finally secured his pool view unit on a mid floor after an almost 3 hours wait to book a unit! Hurray! As the 1 bedder were fully sold shortly after.
Now back to serious business!
Why did my buyer, and so many others, rushed into the purchase?
Because after 12 midnight, he would be subject to the following:
1) He’s a Singaporean and already owns a HDB flat, and does not intend to sell it – pay 7% of purchase price for Additional Buyer’s Stamp Duty.
2) He has since fully paid his housing loan for his HDB flat. If he should still be servicing the loan, the impact would be:
a) Increase in upfront cash from 10% to 25%
A point to note here: With this upfront cash of 25% requirement, those thinking of investing in residential properties can perhaps consider an investment in commercial or industrial property instead. The difference is an additional upfront cash of 5% (ie 30%) as banks can generally offer up to 70% loan for commercial or industrial properties, and they are not subject to ABSD. Further, commercial properties (offices and shop space) are still not subject to Seller Stamp Duty.
b) Housing Loan of up to 50% instead of 60%
Cooling Measure – All Residential Properties
o Additional Buyer’s Stamp Duty (see table below on changes) to be raised across the board by between 5% and 7%.
Cooling Measure – Additional Buyer Stamp Duty
Cooling Measure – Loan to Value Limits on Housing Loan
Cooling Measure – Reference Table for Housing Loan
Cooling Measure – Public Housing
- Tightening on the proportion of monthly income that can be used to service mortgages.The maximum proportion is now 30% for bank loans and 35% for HDB loans.
- PRs who own an HDB flat will be disallowed from subletting their whole flat.
- PRs who own an HDB flat must sell their flat after buying a private residential property in Singapore.
Cooling Measure – Executive Condominiums
- No more super-sized penthouses as the maximum strata floor area of new units will be capped at 160 sq metres.
- Sales of new dual-key units will be restricted to multi-generational families.
Cooling Measure – Industrial Property
Introduction of seller’s stamp duty, ranging from 5% to 15%, for property sold within three years of purchase.
Cooling measure – Contact Info
To discuss on the cooling measures or to address specific scenarios, please call Poh Lin at tel no. 96700937 or leave a message in contact form.