New measures went into effect in Singapore this weekend as part of the government's on-going attempts to cool the property market.
Under the new restrictions, a property buyer's monthly payment on a property loan cannot exceed 60 percent of their monthly income. The measure addresses a growing concern that too many buyers are over-extended on their property loans.
"The TDSR (total debt servicing ratio) will apply to loans for the purchase of all types of property, loans secured on property, and the re-financing of all such loans," the Monetary Authority of Singapore (MAS) said in a statement.
The agency also said it wants to strengthen underwriting practices and discourage buyers from over-leveraging their incomes to buy homes
"The MAS is probably worried that in the environment of low-interest rates, people are overly gearing themselves up to pay for property," Kenneth Ng, head of CIMB Research in Singapore, told Reuters.
Prices in Singapore, the second most expensive market in Asia after Hong Kong, have continued to rise, despite government efforts to slow the market.
Singapore prices rose again in the most recent quarter, hitting record levels. According to data tracked by the Urban Redevelopment Authority (URA), prices of apartments in Singapore's core central region have risen by 49 percent since the end of the global financial crisis in 2009.