Singapore’s government has decided to hike taxes for property purchases in a bid “to promote a sustainable property market.”
Demand from locals purchasing homes for owner-occupation has been especially strong in the first quarter of 2023, and there has also been renewed interest from local and foreign investors in the city-state’s residential property market. “If left unchecked, prices could run ahead of economic fundamentals, with the risk of a sustained increase in prices relative to incomes” the said.
Both local and foreign buyers of residential properties will now have to pay higher Additional Buyer’s Stamp Duty (ABSD) rates. The revised rates took effect from Thursday (April 27).
The biggest jump is the doubling of stamp duties for foreign buyers from 30% to 60%, which will help to “moderate investment demand,” Singaporean authorities said.
This will be the third round of cooling measures by Singapore following previous similar moves.
The booming property market has led to a surge in rents, with Singapore pushing New York off the top spot for the strongest growth in residential rents between October and December 2022, according to a report by Knight Frank.
