Singapore raises ABSD, tightens LTV after strong property price gains

SINGAPORE (July 6): Singapore on Thursday announced a five percentage point rise in stamp duty for some home buyers and tightened housing loans in a bid to cool the property market and keep price increases in line with economic fundamentals.

After falling for nearly four years, house prices started rising in the third quarter of last year and have increased by 9.1% over the past year, the Singapore government said in a statement.

"The sharp increase in prices, if left unchecked, could run ahead of economic fundamentals and raise the risk of a destabilising correction later, especially with rising interest rates and the strong pipeline of housing supply," it said.

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