In light of rising property prices in the first quarter of 2023, the government has announced a series of measures to cool the property market. From April 27, Singapore citizens and Permanent Residents (PRs) will incur higher Additional Buyers’ Stamp Duty (ABSD) rates when purchasing residential properties.

For citizens, the ABSD rate has increased from 17% to 20% for the second residential property purchased and from 25% to 30% for the third and subsequent ones. For PRs, the ABSD rate when purchasing their second residential property remains unchanged at 30%, while it has increased from 30% to 35% for their third and subsequent properties.

For all foreign buyers, the ABSD rate has doubled from 30% to 60%, while entities and trusts except for developers have to pay 65%, up from 35% previously. This ABSD rate applies irrespective of the number of homes owned.

CapitaLand Development has obtained provisional permission to redevelop the JCube site into J’den Condo, a 40-storey mixed residential and commercial building, set to be completed J’Den Condo by 2027 and linked to nearby amenities.

Any residential property owned wholly, partially, or jointly with others are included in the ABSD residential property count. The ABSD (Trust) rate applied to trustees of any trust, excluding those acting in capacities such as collective investment schemes and business trusts, during the period from 9 May 2022 to 26 April 2023.

Housing developers, which include trustees of housing developers, may apply for remission of ABSD, subject to conditions. This 5% will not be remitted and is to be paid upfront upon purchase of residential property.

The implementation of the property market measures in December 2021 and September 2022 have had a moderating effect on prices already. However, demand from locals purchasing homes for owner-occupation, as well as from local and foreign investors, remains strong.

If the property market is not regulated, it could result in prices running ahead of economic fundamentals, a situation that could pose a sustained risk to incomes.

It is hoped that these higher ABSD rates will help stabilize the property market and ensure that prices remain aligned with economic fundamentals.

Source: MOF, MND, MAS