by Kenny Lee Historical policy and news archive · Source publication: 2018-07-05 · Implementation: 6 July 2018. Prepared retrospectively on 3 October 2026; the archive date follows the cited source. Historical rules must be matched to the relevant transaction date.
The announcement
ABSD stayed at 0% for a Singapore citizen’s first residential property and 5% for a permanent resident’s first. Rates for other individuals rose by five percentage points; entities faced a ten-point increase. Developers also faced a new non-remittable 5% component. Bank housing loan LTV limits fell by five percentage points, while HDB loans were excluded from this LTV change.
What this means for property planning
The two changes affected different parts of a purchase: ABSD increased transaction cost, while a lower loan ceiling increased the funds needed outside the mortgage. A five-percentage-point reduction in lending against an assumed S$2 million eligible value means S$100,000 less financing before considering income limits or valuation differences.
For an upgrader, retaining the old home and buying the new one may produce a different tax and borrowing position from selling first. Put both sequences on a cash-flow timeline, including deposits, completion proceeds and any conditional remission. An anticipated tax refund is not cash available at the point of purchase. These are historical measures; subsequent changes must be checked separately.
Before acting
Establish your household profile, property ownership, financing and transaction dates. Obtain a written eligibility or financing assessment where needed. A historical announcement cannot establish your present eligibility, tax liability or borrowing limit.
Source: Original official release or dated news report. Reviewed 3 October 2026.