Singapore tightens loan limits

Singapore added measures to rein in speculative property purchases after previous attempts to cool the real estate market had limited effect. 

Singapore will levy a seller’s stamp duty on all residential units and land sold within three years from the date of purchase, compared with one year now, the Ministry of National Development said in an e-mailed statement Sunday. Buyers who hold more than one mortgage can only borrow up to 70 percent of a purchase and must pay 10 percent of the property value in cash, up from 5 percent before, the government said. 

The new steps are among a range of measures to address Singaporeans’ concerns that an influx of foreign workers and immigrants will create more competition for housing, education and jobs. Hong Kong said this month it will tighten mortgage lending rules and increase the supply of land in a campaign to suppress gains in home prices. 

“The property market is currently very buoyant,” the government said today. “The government’s objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals.”