HDB prices are still rising despite the slew of cooling measures taken up by the HDB and MAS. Currently, supplies of new flats have been ramp up and an Additional Buyer’s Stamp Duty of 3% over the higher-value property have been imposed. These measures however have proven ineffective as the HDB resale prices continue to climb a further 2 percent in the recent quarter-to-quarter report. The latest changes to curb rising property prices is adopted by the Monetary Authority of Singapore and it:
1) Limits mortgage loans to a maximum of 35 years
2) Decreases the Loan-to-Value(LTV) ratio for loans exceeding 30 yearsThe above measures are steps in the right direction but it could spell disastrous if the housing prices do not drop.
Singaporean HDB flats buyers will:
a) either need to pay more in cash or CPF for deposits in order to lengthen the borrowing period
b) or pay more in cash or CPF for monthly mortgage loans in order to shorten the borrowing period
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