Singapore is a small country but the real estate here is in high demand. Other than Singaporeans, it is a known fact that many property investors from across the world have been speculating real estate since the early 1980s. These group of foreign investors include citizens from China, Indonesia, Malaysia, UK & USA.
Here are 3 things you need to know about Singapore’s property cooling measures…
#1 Additional Buyers Stamp Duty (ABSD)
The Additional Buyer’s Stamp Duty (ABSD) was introduced in 2011 to moderate demand for private residential property, and to promote a stable and sustainable property market. Click HERE to learn more.
#2 Total Debt Servicing Ratio (TDSR)
The TDSR was introduced by the Singapore government in 2013 to make sure individuals borrow responsibly, and not end up drowning in debt. It was initially 60% but was revised to 55% on 16 December 2021. Click HERE to learn more.
#3 Which Nationalities are Exempted from ABSD?
Under the respective FTAs, Nationals or Permanent Residents of the following countries will be accorded the same Stamp Duty treatment as Singapore Citizens: Nationals and Permanent Residents of Iceland, Liechtenstein, Norway or Switzerland and Nationals of the United States of America. Click HERE to learn more.
Latest Cooling Measures Implemented
on April 27, 2023
So what has changed over the years? A new set of cooling measures as implemented by the Government of Singapore on the 27th April 2023. Higher additional buyer’s stamp duty (ABSD) rates, with those for foreign buyers, entities, and trusts doubled Singaporeans buying second property: from 17 to 20%; third or subsequent properties: from 25 to 30%.
For permanent residents (PRs) purchasing their second property: from 25 to 30%; third or subsequent properties: from 30 to 35%. For foreigners buying any residential property: from 30 to 60%. This is considered a very harsh move by many, given the fact that some of these foreigners are looking to relocate to Singapore in the near future & may not qualify to apply to be a Permanent Resident immediately. Despite the 100% jump in ABSD for foreigners, it has been reported that units at Yong Ann Park, New Futura & a few new launches in the Core Central Region (CCR) & Rest of Core Region (RCR) have been snapped up by foreigners who are willing to fork out the hefty 60% ABSD on top of the usual Buyers Stamp Duty (BSD). For corporate entities and trustees buying residential property: from 35 to 65%.
To learn more about the 2023 Property Cooling Measures & how this affects you, click HERE & have a chat with us.