Singapore on Thursday introduced new measures to cool home prices that have continued to rise despite earlier efforts to put a lid on a red-hot property market.

Effective Friday, those who buy and sell residential properties within four years will have to pay a stamp duty, up from the current requirement of three years.

Individual buyers who are still servicing an existing loan can only borrow up to 60% of the new property’s value, down from 70% at the moment. For corporate investors, the loan-to-value limit will be cut to 50%.

 

“Previous government measures have to some extent moderated the market, but sentiment remain buoyant,” the finance and national development ministries said in a joint statement with the central bank.

 

“Low interest rates plus excessive liquidity in the financial system, both in Singapore and globally, could cause prices to rise beyond sustainable levels based on economic fundamentals,” the government agencies added.