According to the latest data released by the Urban Redevelopment Authority (URA) for the 3rd Quarter of 2016, the private residential property index in Singapore fell 2.1 points from 140.0 points in 2nd Quarter 2016 to 137.9 points. This represents a decline of 1.5%, compared with a 0.4% decline in the previous quarter.

Prices of non-landed private residential properties declined by 1.8% in the Core Central Region (CCR), compared to the 0.3% increase in the previous quarter. Prices in the Rest of Central Region (RCR) also declined by 1.3%, after registering an increase of 0.2% in the previous quarter. Prices in Outside Central Region (OCR) continued their downward trend declining by 1.2%, after registering a 0.5% decline in the previous quarter.

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Information from Cartus on the residential leasing market and visa/immigration regulations

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These estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers (both licensed and de-licensed) up launch mid-September 2016.

Singapore’s residential property prices could begin bottoming out over the next few months prompting a “moderate” recovery from 2018, but it is unlikely there will be any easing of the Government cooling measures until next year at the earliest, according to industry experts at a recent property market seminar organised by the Real Estate Developers’ Association (Redas).

Picture credit: http://www.emmettli.com/singapore-district-guide/

Core Central Region (CCR): Districts 9, 10, 11, Downtown Core & SentosaRest of Central Region (RCR): RCR refers to the rest of Central Region which are outside postal districts 9, 10, 11, Downtown Core and SentosaOutside Central Region (OCR): Rest of Singapore outside the Central Region

With the cooling measures still in force, the real estate market continues to face disruptive forces on multiple fronts — from weak demand and hefty supply to manpower constraints and challenging business environment”“

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14 Sep 2009 19 Feb 2010 30 Aug 2010 14 Jan 2011 8 Dec 2011 6 Oct 2012 12 Jan 2013

Interest absortion scheme (IAS) removed

Jan 09 Budget assistance measures for property market were not extended

Max permissible loan-to-value (LTV) limit reduced from 90% to 80%

SSD holding period increased to 3 years with rates charged on a sliding scale of 3%, 2% and 1%

For buyers with o/s HL min. cash down payment increased from 5% to 10% of valuation limit & LTV from 80% to 70%

SSD holding period increased to 4 years & rates chargeable changed at 16%, 12%, 8% & 4%

LTV 60% for 2nd HL

Additional Buyer’s Stamp Duty (ABSD)

+10% for foreigners

+3% for PRs buying 2nd property

+3% for Spore buying 3rd property

Max tenure 35% for purchase. LTV down if > 30yrs or the sum of tenure & age > 65yrs (LTV 60% if no HL, 40% with > 1HL)

ABSR: PR’s 1st property (5%) & S’porean’s 2nd property (7%). PR’s 2nd property & S’porean’s 3rd property at 10%. Foreigners & co at 15%.

GLS programme reinstated

Sellers stamp duty (SSD) levied on sale of private residential property within a year of purchase

MOP of non-subsidised HDB flats increased from 3-5 years (resale and subletting restriction)

LTV 50% for companies

1% on the 1st $180k

2% on the next $180k

3% on the remainder

Refinancing tenure 35yrs less no. of years since 1st HL disbursed

LTV for companies down from 50% to 40%

LTV: 2nd HL at 50% (30% if tenure>30 years or loan past age 65. 3rd HL at 40% (20% if tenure > 30 years or loan past 65) For corporate entities, LTV down from 40% to 20%

Min. Cash Down Payment: Applying for 1st HL: No change, i.e. 5% & 10% if tenure > 30 years or loan extends past age 65. 2nd & subsequent HL at 25% (up from 10%)

Mortgage Service Ratio for HDB Loan (purchase & refinancing): 30% of borrower’s gross monthly income

PR HDN flat restriction: Sell flat within 6 months of private property purchase (BUC- 6 months from TOP/SCS) & cannot sublet whole flat

CPF withdrawal restriction for HDB lease < 60 years (previously apply to private property only)

EC construction & sale restrictions

Seller’s stamp duty on industrial properties

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®2016 Cartus Corporation Pte. Ltd. All rights reserved. Cartus and the Cartus logo are pending or registered trademarks of Cartus Corporation.Source: URA Singapore, propertyguru.com.sg World Bank Doing Business Rankings June 2014, HSBC Expat Explorer Survey 2014, Economic Intelligence Unit November 2014 / MOM notification no. 141215854801The information in this publication is provided in good faith based on information currently available and is therefore subject to change. However it is not intended to provide specific advice or guidance or take the place of either written law or regulations. Cartus accepts no liability for the accuracy, completeness or usefulness of the data and information contained herein or for any loss or damage arising in contract, tort or otherwise in reliance of the data contained or omitted from this publication or from any action or decision taken as a result.

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M a r k e t O u t l o o k In the last decade, a distinct shift has occurred in Singapore that is affecting the property market.

National Development Minister Lawrence Wong said cooling measures will be here to stay for a while to curb capital inflows, including those from overseas, adding: “We don’t want to be a nation of property speculators.” The sure-win investment status

of property is no longer and property is expected to become more like any other asset, with risk-return ratios to watch out for and uncertain prospects for capital gain. Yield in the form of rental income will remain low and will likely fall further as population growth slows in the face of popular pressure against rising numbers of foreign skilled labour.

Property should be viewed as any other asset class, with attendant risks, especially when the entire social milieu of Singapore is shifting. Just how that will affect the regulatory environment - and policies on housing and on taxation - will be one of the chief risks in property investment in the future.

For further information on this or any other aspect of your assignment progrom, please do not hesitate to contact your Cartus representative or email trustedguidanceasia@cartus.com.