Easing Property Cooling Measures

Ms Foo Mee Har asked the Minister for National Development whether the Government will consider relaxing some property cooling measures, such as those relating to Additional Buyer Stamp Duty, so that Singaporeans who meet the total debt obligation cap of 60% can upgrade their properties whilst remaining financially prudent.

Madam, as a former dengue patient, I note the theoretical risk, that should I, bad luck, be struck again with a different strain, there is a raised risk of complications. So, please keep Singapore mosquito-free.

Madam, the property market cooling measures are intended to keep our housing market stable and sustainable. They aim to encourage financial prudence among home-buyers and moderate property prices.

Various concessions are already in place to benefit upgraders. For example, Singaporean married couples can enjoy a refund on Additional Buyer's Stamp Duty if they sell their existing home within a stipulated period after the purchase of their second home.

Similarly, an upgrader may qualify for the highest Loan-To-Value limit of 80% on his second loan if he is able to provide documents to his bank to show that he will be selling his existing home. This enables him to be treated as a borrower with no outstanding housing loans.

The existing concessions are reasonable and sufficient. Any move to relax the cooling measures, including by broadening these concessions, is premature under current market conditions. Such a move could lead to an upswing in demand, which would increase the number of transactions and raise housing prices. This would not be welcome to Singaporean home-buyers, particularly those with aspirations to upgrade.