A Brief Summary of Cooling Measures (Source: SRX)
1. Additional Buyer’s Stamp Duty (ABSD)
ABSD was first introduced on 7 December 2011 to cool the residential market and revised upwards on 12 Jan 2013 due to further acceleration in the escalation of residential property prices. The latest round of ABSD rate revision was introduced on 6 July 2018.The ABSD rate will depend on the buyer profile as at the date of purchase or acquisition of the residential unit. Hide
| Citizenship | ABSD Rate on Primary Home Purchase | ABSD Rate on Secondary Home Purchase | ABSD Rate on Tertiary & Subsequent Purchase |
|---|---|---|---|
| Singapore Citizens | N/A | 7% revised to 12% | 10% revised to 15% |
| Permanent Residents | remains unchanged at 5% | 10% revised to 15% | 10% revised to 15% |
| Foreigners1 | 15% revised to 20% | 15% revised to 20% | 15% revised to 20% |
| Corporate Entities | 15% revised to 25% | 15% revised to 25% | 15% revised to 25% |
Note: 1Citizens of the USA, Switzerland, Liechtenstein, Norway, Iceland will be treated the same as Singapore Citizens due to FTA agreement.
2. Sellers’ Stamp Duty (SSD)
SSD is payable on all residential properties and residential lands that are bought on or after 20 Feb 2010 and sold within the holding period. Hide | Date of Purchase | Year 1 | Year 2 | Year 3 | Year 4 |
|---|---|---|---|---|
| Between 20 Feb 2010 and 29 Aug 2010 | Same as basic Buyer Stamp Duty | N/A | N/A | N/A |
| Between 30 Aug 2010 and 13 Jan 2011 | Same as basic Buyer Stamp Duty | 2/3 of basic Buyer Stamp Duty | 1/3 of basic Buyer Stamp Duty | N/A |
| Between 14 Jan 2011 and 10 Mar 2017 | 16% | 12% | 8% | 4% |
| On and after 11 Mar 2017 | 12% | 8% | 4% | N/A |
3. Loan-to-Value (LTV) Ratio
Loan to value (LTV) is the housing loan quantum a bank or financial institution is willing to offer as a percentage of the property’s valuation. Hide 
The 2 Most Important Aspects of the Jan 12 cooling measures
1) Changes to downpayment for 2nd and subsuquent properties
2)Additional Stamp Duties payable for 2nd and subsequent properties
Why pay for ABSD?
The extra ABSD that one has to pay for a 2nd property puts a hefty burden on the buyer,
but why are people still buying their 2nd/3rd property and still paying for it?
Click below to know their rationale!
https://propertyfreedom.net/why-buy-a-property-now-and-have-to-pay-for-absd/
Courtesy of: iMoney.sg