Singapore introduces measures to cool the public housing market [Video]

Singapore has tightened the maximum loan that home buyers can take out in a bid to cool the country’s public housing resale market.

From Tuesday, buyers of HDB flats won’t be allowed to borrow as much as before. The loan-to-value limit for Housing Development Board loans will be lowered from 80% to 75%, according to a press release released by the government late on Monday. HDB is the city-state’s public housing authority.

“This brings the LTV limit for HDB loans in line with loans granted by financial institutions, which remains at 75%,” HDB and the Ministry of National Development said in the joint press release, adding that the move is aimed at stabilizing Singapore’s resale market and encouraging flat buyers to borrow prudently.

The Enhanced CPF Housing Grant will also be increased for eligible families who are buying for the first time, by up to SG$40,000 ($30,500) to a maximum of $120,000 ($91,600), the government added.

Under local rules, …