Following in the footsteps of China who is working in vain to curb speculation in their housing bubble, Singapore has also stepped up measures to cool it’s market.
Previously citizens could only borrow up to 70 percent to fund a purchase of a 2nd or subsequent home. This has now been decreased to 60 percent. Loans to other entities (companies, funds etc) have been reduced from 60 percent to 50 percent.
To help prevent investors flipping houses, sellers will now have to pay stamp duty on homes sold within four years. This was previously three. If an owner sells a property within a year, they will now have to pay 16 percent tax, up from the previous 3 percent.
A Global Real Estate Trends report published by Scotia Economics on Christmas Eve showed Australia topped the world in house price growth in 2010. The Australian Government has yet to make any attempt to cool its frothing housing market.
ยป Singapore joins nations curbing house prices – The Sydney Morning Herald, 14th January 2011.
this is why we Australians will break to pieces soon, while forward-thinking countries like Singapore will keep going – experiencing only a minor “bump” on the road.