Singapore tightened the country’s public housing policy by reducing tenures for new loans and restricting foreign permanent residents from buying government-built homes.
Singapore will cut the maximum tenure for new housing loans to purchase homes built by the state to 25 years from 30 years, the Housing & Development Board said in a statement Board statement on its website. Borrowers will receive as much as 30% of their gross monthly income, down from 35%, it said.
With 82% of Singaporeans living in government-built apartments, housing policy has been used to encourage the development of families. Grants are given to married couples buying their first homes, with additional funds for those living close to their parents, according to HDB’s website.
“We are introducing two measures to further stabilize the HDB resale market,” the board said in the statement. “These measures are in line with those introduced by the Monetary Authority of Singapore to encourage financial prudence among borrowers, which is especially important given the current low interest rate environment is unlikely to be sustained.”
Foreigners will be allowed to buy resold HDB flats three years after they obtain permanent residential status in the island city, the board said. The measure took effect 5:30 p.m. local time yesterday.
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