Singapore Introduces New Public Housing Regulations

The Singapore government has announced new regulations on public housing aimed at controlling rising prices ahead of the upcoming general election. The loan-to-value (LTV) limit for Housing Development Board (HDB) financing will be reduced from 80% to 75%, requiring larger down payments for homebuyers. This change, effective from August 20, 2024, applies to both secondary market transactions and new Build-To-Order units. The government will also increase housing grants for first-time buyers by up to S$40,000 to enhance affordability, particularly for lower-to-middle income households. These measures come as Prime Minister Lawrence Wong seeks to stabilize the housing market and counter declining popularity for the ruling People's Action Party. With over 80% of residents living in public housing, housing affordability remains a critical issue in Singapore's political landscape.