Additional buyer's stamp duty for private property from Dec 8

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Additional buyer's stamp duty for private property from Dec 8
By Joanne Chan | Posted: 07 December 2011 2003 hrs
http://www.channelnewsasia.com/stori...170002/1/.html

SINGAPORE: The government has imposed an additional buyer's stamp duty for private property of between 3 per cent and 10 per cent for Singaporeans, Permanent Residents and foreigners from December 8.

Foreigners will pay 10 per cent Additional Buyer's Stamp Duty (ABSD) for any residential property.

Permanent Residents owning one and buying second and subsequent properties will pay 3 per cent ABSD.

Singaporeans owning two and buying third and subsequent residential properties will pay 3 per cent Additional Buyer's Stamp Duty.

A joint statement by the Finance Ministry and Ministry of National Development said the Government's objective is to promote a sustainable residential property market where prices move in line with economic fundamentals.

It said prices of private residential properties have continued to rise, albeit more slowly in the last two quarters. Prices are now 13 percent above the peak in 2Q1996 and 16 percent above the more recent peak in 2Q2008.

The statement said even with the current economic uncertainties, the demand for private residential property remains firm.

Given the uncertainty in stock markets and with interest rates remaining low, private property in Singapore continues to attract investors, local and foreign.

Excessive investment demand will however make the property cycle more volatile, and thus increase the risks to our economy and banking system.

It said the Government has therefore decided to impose the ABSD to moderate investment demand for private residential property and promote a more stable and sustainable market.

A higher ABSD rate for foreign buyers in particular is necessary, in view of the large pool of external liquidity and strong buying interest from abroad, and the relatively small size of the Singapore market.

Foreign purchases account for 19 percent of all private residential property purchases in 2H2011, up from 7 percent in 1H2009.

The statement added that the Government will continue to monitor the property market and adjust our property policies in step with changes in the market and the economy.

- CNA/de