According to URA, the restriction is meant to instil a greater financial discipline in making property purchases under the current market conditions.
The restriction on developers to re-issue options to purchase (OTP) for the same buyer, for the same unit, within 12 months of expiry, is expected to dampen the private property market, according to RHB Securities.
The tightening measure was announced by the Urban Redevelopment Authority (URA) on Sept 28 with effect on the same date.
