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December 2021 Cooling Measures Hit: How Smart Buyers Restructure Portfolios

16 December 2021 · PropertySpy Research

December 2021 Cooling Measures Hit: How Smart Buyers Restructure Portfolios
December 2021 Cooling Measures Hit: How Smart Buyers Restructure Portfolios

Image: Channel NewsAsia

Singapore introduced strict midnight cooling measures, raising second-property ABSD to 17% and cutting TDSR to 55%. Discover how savvy property owners legally optimize their ownership structures.

Key Takeaways

•17% ABSD on 2nd Property: Singapore citizens face a 5-percentage-point hike on second residential acquisitions.
•TDSR Reduced to 55%: Total Debt Servicing Ratio tightened from 60%, trimming borrowing capacity by 8-10%.
•Decoupling Strategies Expand: Spouses increasingly decouple ownership to maintain first-timer tax-free status.

The government introduced midnight macroprudential cooling measures in December 2021, hiking Additional Buyer's Stamp Duty (ABSD) to 17% for citizens buying a second home and tightening the Total Debt Servicing Ratio (TDSR) to 55%. The intervention sought to curb speculative investment and foster sustainable pricing.

"Whenever cooling measures take effect, astute buyers leverage legal structuring—such as decoupling and trust holdings—to preserve capital and avoid unnecessary tax burdens." — PropertySpy Market Analysis

Managing Cash Flow & Holding Costs on Your Portfolio

Cooling measures punish unprepared buyers but create immense advantages for those with flexible ownership structures. Speak with PropertySpy to review your decoupling eligibility, borrowing thresholds, and stamp duty mitigation pathways before committing to your next transaction.

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Original Report: Channel NewsAsia

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