Additional Buyers Stamp Duty from 8 December 2011

More cool­ing meas­ure is being intro­duced to sta­bil­ize the prop­erty mar­ket in Singapore!

From 8 Decem­ber 2011, Addi­tional Buyer’s Stamp Duty (ABSD) of the pur­chase price or the mar­ket value of the prop­erty, whichever is higher, will apply to the fol­low­ing cat­egor­ies of res­id­en­tial prop­erty purchases:

  • For­eign­ers and non-individuals (cor­por­ate entit­ies) buy­ing any res­id­en­tial prop­erty will pay an ABSD of 10%;
  • Per­man­ent Res­id­ents (PRs) own­ing one and buy­ing the second and sub­sequent res­id­en­tial prop­erty will pay an ABSD of 3%; and
  • Singa­por­eans own­ing two and buy­ing the third and sub­sequent res­id­en­tial prop­erty will pay an ABSD of 3%.

This is on top of the cur­rent Buyer’s Stamp Duty of 1% of the first $180,000, 2% of the next $180,000 and 3% of the remainder prop­erty price.
As long as options are gran­ted on or before 7 Dec 2011 and exer­cised within 3 weeks (i.e. on or before 28 Dec 2011) or the option valid­ity period, whichever is the earlier, this ABSD will not apply.

This addi­tional rul­ing will plug the remain­ing holes in the rising prop­erty prices. For­eign­ers buy­ing act­ively into Singa­pore Prop­erty Mar­ket, Singa­pore Cit­izens and PRs register a com­pany to buy prop­erty to avoid the Seller’s Stamp Duty, and oth­ers who are cash rich in buy­ing 3 or more res­id­en­tial properties.

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