What are the new property cooling measures and how will they affect you?

The government has consistently kept a keen eye on the property market for several quarters to ensure that it’s growing at a healthy and sustainable rate.

But since 1Q2020, overall private property prices have been on the rise. The number of HDB resale transactions and private property sales have also been reaching a record high.

Due to the rising prices and volume of transactions, the latest round of property measures introduced will be taking immediate effect. The Additional Buyer’s Stamp Duty (ABSD) rates will be raised, and the Total Debt Servicing Ratio (TDSR) threshold will be tightened. However, measures for first-time buyers remain unchanged.

With the gradual easing of the Covid-19 restrictions and the buoyant property market, it is timely that the government has stepped in to introduce these latest rounds of property cooling measures. It is crucial to have a “check and balance” to prevent runaway prices and “overheating” in the property market.

We can expect a deceleration in demand in the next couple of months, as these calibrated cooling measures set in. It will also instill financial prudence in consumers, in line with the government’s aim to ensure continued housing affordability.

It is also key to note that the government will be ramping up the supply for both private and public housing.