This might mean that expats who were previously considering purchasing a home would likely reconsider and choose to pivot to the rental market instead to avoid the hefty ABSD tax. This collective choice may drive up demand for rental properties and, in turn, jack up the rental prices.
With the recent tightening of the Total Debt Servicing Ratio , borrowers can only have debt payments of up to a maximum of 55 per cent of their combined monthly incomes. This is a five point decrease from the previous 60 per cent. This may drive potential home buyers to adopt a wait and see approach and consider renting instead, which would ultimately contribute even more demand to an already limited supply of rental homes.On top of this, the pandemic has contributed to the rise in property rentals. One example is thedue to a shortage of migrant workers. As a result of the extended wait times, many are forced to turn towards leasing in the interim, while waiting for their apartments to be completed.
Singapore Latest News, Singapore Headlines
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