Pinnacle@Duxton, a Singapore Housing and Development Board (HDB) public housing estate in Singapore, on Monday, 19 February 2024.
Bloomberg | Bloomberg | Getty Images
Singapore has tightened the maximum loan amount that homebuyers can apply for in a bid to cool the country's public housing resale market.
Starting from Tuesday, HDB flat buyers will not be able to borrow as before. The loan-to-value limit for HDB loans will be reduced from 80% to 75%. According to a press release issued by the government late Monday. HDB is the city-state’s public housing authority.
“This brings the LTV limit for HDB loans in line with loans issued by financial institutions, which remains at 75%,” HDB and the Ministry of National Development said in a joint press release, adding that the move aims to stabilize Singapore's resale market and encourage Home buyers should be cautious about borrowing money.
The enhanced CPF housing grant will also be increased by up to S$40,000 (US$30,500) for eligible first-time homebuying households, up to a maximum of S$120,000 (US$91,600), the government added.
below local rulesmost HDB owners can only resell after occupying the property for five years.
this The main attraction of buying a second-hand apartment is the increased possibility of immediate move-incompared to build-to-order apartments May take up to six years to complete.
Prices of resale homes in Singapore rose by more than 4% in the first half of this year, driven by strong demand and tight supply, the government said.
The authority stressed that first-time homebuyers, especially low-income households, will be less affected by the new loan-to-value limits because they receive substantial housing grants, such as the Enhanced Provident Fund Housing Grant.
“Given the continued, strong and widespread demand for HDB resale flats, these measures will help cool the market and encourage prudent borrowing, thereby making housing more affordable for low- and middle-income first-time homebuyers,” the release said. .
More than 80% of Singapore residents Living in public housing built, sold and subsidized by the government.
Housing affordability remains a major concern for Singaporeans, with the country's Prime Minister Lawrence Wong addressing the issue in his speech. Speech at the National Day Mass Rally on August 18 and noted government efforts to lower prices.
this Median price of three-room resale HDB flats The fee for Singapore Central is S$500,000.