Singapore introduces new measures to cool property market

The restrictions, which involve housing authority (HDB) resale flats, will require foreigners to wait for three years after acquiring permanent residency before buying existing HDB apartments. Previously, international buyers could snap up flats immediately after acquiring residency.

The measure is designed to deter speculation in the country’s real estate market, which has seen house prices continue to climb. Indeed, as of May 2013, prime residential prices were more than 50 per cent higher than the 2008 market trough.

The latest Change in regulations follows the introduction of 5 per cent additional stamp duty for foreign permanent residents for their first purchase - and an increase of the levy on their second purchase from 3 per cent to 10 per cent.

“The Government is introducing four additional measures to help middle-income Singaporeans afford their first home and low-income families upgrade to larger flats, and to facilitate mutual care and support for multi-generation families. In addition, we are introducing two measures to further stabilize the HDB resale market,” said officials in a statement.

“We have reviewed this policy and have decided that SPR households should wait three years from the date of obtaining SPR status, before they can buy a resale HDB flat. This measure will apply to resale applications received on or after 27 Aug 2013, 5:30pm.”