Since 2009, the Goverment has introduced a
series of additional regulatory measures in an effort to cool and ensure a stable sustainable property market.
Below is a closer look at some of these measures and its applicability and impact to the Executive Condominium
disclaimer: While every reasonable care has been taken to prepare the contents of this summary, the author cannot
be held responsbile for any inaccuracy. Please check with the appropriate parties for the latest update or
interpretation of the measures before booking and/or contract execution)
a. Buyer's Stamp
The buyer is responsible to pay the Buyer's
Stamp Duty (BSD) to Inland Revenue Authority of Singapore within 2 weeks upon signing the Sales and Purchase
The BSD is based on the Purchase Price or
Market Value, whichever is higher
The simplified mathematical formula for
residential property purchase is:
* BSD (up to 1
million) = 3% of purchase price/market value minus
** BSD (more than 1 million) = 4% of purchase
price/market value minus $15,4000
b. Additional Buyer's Stamp
In addition to the buyer stamp duty, ABSD was
first introduced on 8 December 2011 to curb foreigner and speculative demand for residential property. The latest
ABSD rate is as follows:
For Executive Condomimium and new HDB flat
which are subjected to HDB Regulations on Ownership, there is a special concession and rate. Reference
IRAS e-Tax guide Stamp Duty; ABSD Revised Edition
(published 11 Jan 2013), para 10.1 & 10.2
* ABSD will be remitted for purchase of HDB flat or new EC by a SC
household only (one where there is at least one Singaporean owner).
* Purchase of second residential property by a SC household may qualify for ABSD refund subject to ABSD being paid
on the second residential property and the first property being sold within 6 months from date of TOP (for BUC
To put it simply, for the purchase of a new EC unit, SC/SC household do not need to pay ABSD.
Similarly, a SC/SPR married couple also do not need to pay ABSD if they purchase an EC.
+ I am a SC married to a SPR. We jointly own a 3-room HDB flat. If we upgrade to an EC unit, do we need to pay ABSD?
As HDB’s rules require buyers to dispose of their existing flats within 6 months from the possession of new HDB flats, ABSD remission will be given upfront. You do not need to pay ABSD when you buy an EC unit.
+ I am a SC married to a SPR. Both of us do not own any property in Singapore. If we jointly purchase our first matrimonial home, do we need to pay ABSD?
SPRs are required to pay ABSD at 5% if they buy their first residential property on their own or jointly with SC. However if both you and your SPR spouse do not own any property and the matrimonial home is the only residential property owned by you and your spouse, you are eligible for the ABSD remission for spouses.
More details on ABSD and its FAQs can be found in
IRAS's e-Tax guide on ABSD
There is no resale levy for 2nd timer
applicants who applied for new EC from developer where the land was sold before 9 Dec 2013 or a HDB resale flat or
The resale levy will be applicable for 2nd
timer applicants who applied for new EC unit on EC land sales after 9 Dec 2013 (i.e from Westwood Residences
The exact resale levy amount to be paid will be determined by HDB. It
applies regardless of ownership type (joint-tenancy or tenancy-in-common) or shared interest in the
flat. The levy amount payable depends on when the resale application for the 1st subsidised
flat was submitted.
When and how the resale levy payment is
2. For Buyer and
Below are some key regulatory measures to loan
a) Loan Tenure or Repayment Period
From 28 August 2013, the loan tenure for HDB unit has been
- From 30 years to 25 years for new housing loan from HDB.
(Not applicable for EC)
- From 35 years to 30 years for new housing loan and
re-financing facilities from bank .
As EC follows the private residential category for housing
loan, the maximum repayment period from bank remains at 30 years and 35 years (for extended loan tenure;
cap at additional 10 years or 75 years of age, whichever is lower)
c. Total Debt Servicing Ratio
Effective from 16 December 2021, any loan extended should not exceed the a TDSR
threshold of 55%. It means that the total debt of borrowers cannot be more than 55% of their household
income. The key parameters used to compute the TDSR
Under the TDSR
framework, for the purchase of new EC, existing mortgage
repayment (if any) can be excluded from total debt. It means that HDB
upgraders with an existing housing loan will be given a higher loan limit for the purchase of EC versus
To curb 'flipping or sub-sale' activities, the
Seller Stamp Duty (SSD) was imposed onto sellers who bought and
sold the property within a short holding period. The current rates for residential property
are as follows:
As there is a 5 years Minimum
Occupation Period for EC, no SSD is payable for a resale unit whose
MOP had been met
4. Finally, for the EC Developer as
From 12 January 2013,
The maximum strata title floor area of new EC will be limited to 160 square
· Sales of new dual key EC units will be
limited to multi-generational families only
· Developer of future EC sites will only be
allowed to launch the EC units for sale 15 months from the date of award of the sites or after the completion of
foundation works, whichever is earlier.
· Private enclosed space (PES) and private
roof terraces will be treated as gross floor area (GFA) approved or allowed for the site. Such spaces will be
counted as part of the “10% bonus” GFA allowed and subject to payment of development charges.
1. MAS's press release on 5 Oct 2012
2. Additional Measures to Ensure a Stable and Sustainable Property Market
MAS Introduces Debt Servicing Framework for Property Loans
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