New Property Cooling Measures: Foreign Buyer ABSD Doubles to 60%
Demand in the CCR or prime districts will be more affected due to a higher proportion of foreigners and investment buyers.
After just 17 months, new property cooling measures include another ABSD rate hike. Singapore acts to temper a resilient property market amid economic challenges.
Singaporeans must now pay a 20 percent additional buyers’ stamp duty (ABSD), for acquiring a 2nd residential property starting from 27 April 2023. The previous rate was 17 percent.
Citizens are now required to pay 30 percent on their 3rd and subsequent residential properties. This has been increased from the previous 25 percent.
A similar ABSD rate applies to Singapore Permanent Residents (PRs) who are purchasing a 2nd residential property.
The government has also raised the ABSD rate for Singapore PRs acquiring their 3rd and subsequent residential property from 30 percent to 35 percent.
As for foreigners, the ABSD rate for purchasing any type of residential property will be increased from 30 percent to 60 percent.
Except for developers, the ABSD rate for entities or trusts purchasing any residential property in Singapore will be increased from 35 percent to 65 percent.
Despite property cooling measures in Dec 2021 and Sep 2022, prices surged in 1Q2023. Source: Ministry of Finance, Ministry of National Development, and Monetary Authority of Singapore.
The demand from locals acquiring homes for their own stay has been particularly strong. Also, there has also been renewed interest in Singapore’s residential property market. And, This is from both domestic and foreign investors.
The government warned that property prices could outpace the economic fundamentals if it’s been left unchecked.
Newport Residences, CDL’s luxury condo, boasts 246 units. Situated on Tanjong Pagar’s Anson Road, it replaces the former Fuji Xerox Towers. The grand opening was set for April 29, 2023.
Highly anticipated this year, it’s a standout project. The last freehold launch in the area was Onze @ Tanjong Pagar in 2013.
However, after the latest property cooling measures announced on April 26, 2023, CDL chose to postpone Newport Residences’ preview.
On the other hand, EL Development plans to launch Blossoms By The Park on 29 April as planned.
The new residential project along Slim Barracks Rise, a 275-unit 99-year leasehold condo, is located in one-north.
EL Development doesn’t feel that the new cooling measures will have much effect on the sales of Blossoms By The Park. As most of the potential buyers are expected to be buying their very 1st property.
Hoi Hup Realty, together with its joint partner Sunway Property will proceed with the launch of its upscale 816-unit condo project, The Continuum.
On 21 April 2023, the freehold condo project along Thiam Siew Avenue in prime District 15 held its preview.