Singapore unexpectedly doubled stamp duties for non-residents to an eye-popping 60% on Wednesday night, impacting the acquisition of private property.
In Singapore, where real estate is seen as a safe haven investment by affluent foreigners, the government keeps a strict eye on property prices to guarantee that they don’t rise beyond the rate of inflation and remain out of reach for ordinary citizens.
The finance ministry, national development ministry, and central bank have all issued a joint statement saying that the extra buyer’s stamp duty (ABSD) for Singapore citizens and permanent residents would also be increasing, but at a considerably lower rate and only for subsequent properties.
The Additional Buyer’s Stamp Duty (ABSD) for Singaporeans purchasing their second and subsequent homes will increase from 17 percent to 20 percent and from 25 percent to 30 percent.
The rates for citizens and permanent residents like Normanton Park Balance Unit Charts and Normanton Park Pricing who are buying a second home will increase by 5 percentage points, to 30% and 35%, respectively. The new fees will take effect this coming Thursday.
There were “renewed signs of acceleration amid resilient demand,” the administration claimed in a press statement.
A prolonged increase in prices relative to incomes is a possibility if prices are allowed to rise ahead of economic fundamentals, as warned by the government.
Over the last two years, the government has implemented two sets of cooling measures. In December 2021, despite the economic consequences of Covid-19, it boosted stamp duties, citing a “buoyant” real estate market.
Suggested Article: Annual Prices for Auto Insurance are expected to go up