Sources: Knight Frank, BT BT Graphics: Gareth Chung

BT Infographics

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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2003 – Iraq war – SARS breakout� S$230m SARS relief package, but this mostly benefited commercial properties

2004 � Government eased rules for foreigners to buy land in Sentosa Cove

2000 Global oil price hike

2001 – Dot-com bubble burst– 9/11 terrorist attack

2002First Reit listed

Chilling effect

1996ANTI-SPECULATION MEASURES:� 80% loan-to-value (LTV) limit for property loans

� Stamp duty extended to buyers of all sales and sub-sales of uncompleted properties

� New stamp duty and tax on gains on properties sold within 3 years of purchase

� 30-month project completion period (PCP) for private developments, 5% per annum penalty for time extension

� 7,000 to 8,000 residential units for release in 1997

1998 More property relief measures:� Suspension of goverment land sales (GLS) and allowing reassignment of GLS parcels till end-1999

� Suspension of 5% p.a. penalty on PCP extension

� Stamp duty deferred for buyers of uncompleted properties until completion or subsequent sale

1999� For private residential projects,

PCP set at 6 years instead of 8

1997 Asian Financial CrisisRelief package for property market:� Government sale sites deferred

� Extension of PCP for residential projects from 4-5 years to 8 years

� Extension of PCP for foreign companies by up to 2 years

� Suspension of stamp duty on sale of properties within 3 years of purchase

IT was 20 years ago when drastic cooling measures were first imposed on runaway housing prices in Singapore. Since then, government intervention has been a feature of the property sector here. The Business Times looks back on two decades of property policy measures and their effectiveness. BY LEE MEIXIAN

2008 Collapse of Lehman Brothers� GLS for H1 2009 Confirmed List suspended, most of the remaining Confimed List sites for H2 2008 were transferred to the Reserve List

2007 � Deferred Payment Scheme scrapped

� New collective sale rules kicked in

2005 Plans unveiled for Integrated Resorts

ROUND 3� Increase of the holding period for SSD from 1 year to 3 years

� For property buyers who already have outstanding housing loans, LTV ratio lowered from 80% to 70%

2010 ROUND 2� Introduction of seller’s stamp duty (SSD) on all residential properties sold within 1 year of purchase

� LTV limit lowered to 80% for all housing loans

2009 Global Financial CrisisROUND 1 � Removal of interest absorption scheme and interest-only housing loans

2011 Singapore General ElectionROUND 4� Increase of the holding period for SSD from 3 years to 4 years

� SSD rates raised to 16%, 12%, 8%, 4% of consideration if the property is sold in the first, second, third and fourth year of purchase respectively

� LTV limit lowered to 50% on housing loans for non- individual buyers

� LTV limit lowered on housing loans from 70% to 60% for individual buyers with outstanding housing loans

ROUND 5� Additional buyer’s stamp duty (ABSD) – 10% for foreigners and corporate entities; 3% for PRs buying second property onwards; 3% for citizens buying third property onwards

� Developers to pay ABSD if they can’t build and sell units within 5 years from site purchase date

2012 ROUND 6� Maximum tenure of all new residential property loans capped at 35 years

� LTV ratios lowered for residential property loans to non-individual borrowers from 50% to 40%

2013 Population White Paper releasedROUND 7� ABSD raised across the board: 5% for PRs buying their first property; 7% for citizens buying their second property; 15% for foreigners and corporate entites buying their first property

ROUND 8� Total Debt Servicing Ratio (TDSR): Loans cannot exceed 60% of gross monthly income

� Mortgage Servicing Ratio: Housing loans capped at 30% of borrower’s gross monthly income for HDB flat buyers

� Maximum repayment period for HDB housing loans lowered from 30 to 25 years

HDB Resale Index

Non-landedPrivate Residential Index