- Singapore’s Additional Buyer’s Stamp Duty (ABSD) measures revised.
- Impact on locals, PRs, and foreigners.
- Effects on the property market and rental market.
The following content is based on the Transcript of the Q&A with Minister Desmond Lee at the media doorstop on 27 April 2023.
Eh friends, you hear about the latest cooling measures or not?
The gahmen just announced that they are increasing the Additional Buyer’s Stamp Duty (ABSD).
So let us discover how this affects the property market and all of us, okay?
ABSD Changes: What’s Up?
So hor, ABSD measures are revised like this:
- Singaporeans buying 2nd property: 20% (3% increase)
- Singaporeans buying 3rd or more: 30% (5% increase)
- PRs buying 2nd & 3rd property: 30% & 35% respectively (5% increase)
- Foreigners buying any property: 60% (30% increase) – double ah!
ABSD Increase: Why So Much?
Minister Desmond Lee says these changes ensure Singaporeans get priority when buying homes for owner occupation.
And also to dampen local and foreign investment demand.
But how does it affect everyone?
Impact on Singaporeans, PRs, and Foreigners
For Singaporeans and PRs, the increase is not too bad lah, can still afford it.
But for foreigners, wah, 20% increase sia!
Minister Lee say most foreigners in Singapore rent, not buy.
So they shouldn’t be affected too much.
But for those who invest from overseas.
This change makes them think twice about buying property here.
Effects on Property Market and Rental Market
Some worry these changes will decrease property prices or affect the HDB resale market.
But Minister Lee say no need to worry.
HDB resale market got moderation already, and the government is keeping an eye on it.
Also, many new properties are coming up, so the market should be stable.
The rental market also shouldn’t have a spill-over effect.
Many locals who are renting are moving back to their homes, and new supply coming in for rental.
So, the rental market should be quite okay lah.
Actionable & Practical Takeaways
- If you’re a Singaporean or PR, consider the new ABSD changes when buying a property.
- For foreigners, renting may be better than buying or considering other investment options.
- Monitor the HDB resale market for opportunities.
So, there you have it.
ABSD changes sure make some waves in Singapore’s property market, but overall, should be ok lah.
Just need to be more careful when making property decisions, and maybe can consider other options if not sure.
As for the rental market, steady lah, no need to panic.
Life still goes on in our little red dot, so we adapt and keep moving forward, ok?
What you think about these new ABSD measures, ah? Share your thoughts below, leh!