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.