The Singapore government implements strategies to regulate the public housing market temperature.

• Over 80% of Singapore's population reside in government-built, sold and subsidized public housing flats.
• The government announced that from Tuesday, HDB flat buyers will face a lower loan-to-value limit of 75% for their Housing Development Board loans.
• Eligible families who are buying for the first time will receive an increased Enhanced CPK Housing Grant of up to SG$40,000 ($30,500).

In an effort to regulate the public housing resale market in Singapore, the government has imposed stricter limits on the maximum loan amount that home buyers can obtain.

The loan-to-value limit for Housing Development Board loans will be reduced from 80% to 75%, according to a press release released by the government on Monday. As a result, buyers of HDB flats will no longer be able to borrow as much as before.

The LTV limit for HDB loans has been adjusted to match the limit set by financial institutions, which remains at 75%, in order to stabilize Singapore's resale market and encourage flat buyers to borrow prudently, according to a joint press release from HDB and the Ministry of National Development.

The government has increased the Enhanced CPF Housing Grant for first-time buyers by up to SG$40,000 ($30,500) to a maximum of SG$120,000 ($91,600).

After occupying an HDB flat for five years, most owners are allowed to resell it under local rules.

The primary advantage of purchasing second-hand flats is the higher chance of prompt occupancy, as opposed to newly constructed flats that may take up to six years to be completed.

The government reports that the prices of resale homes in Singapore increased by more than 4% in the first half of the year due to high demand and limited supply.

The new LTV limit will not significantly impact first-time home buyers, particularly lower-income households, due to the substantial housing grants they receive, such as the Enhanced CPF Housing Grant.

The sustained, strong, broad-based demand for HDB resale flats will be cooled down by these measures, which will encourage prudent borrowing and make housing more affordable for lower-to-middle income first-time home buyers, as stated in the release.

Over 80% of Singapore's population reside in government-built, sold and subsidized public housing flats.

The issue of housing affordability continues to be a major concern for Singaporeans, as addressed by Prime Minister Lawrence Wong in his National Day Rally speech on Aug. 18, where he highlighted government efforts to control prices.

The median price of a 3-bedroom resale HDB flat in Singapore's central area is S$500,000.