Desmond Lee, Minister for National Development, says the government is taking “calibrated steps” for a property market that remains “resilient” even with “significant” economic uncertainty and high interest rates. “If we don’t take early pre-emptive measures, we may see investment numbers, both by locals and by foreigners grow, and that will add stress to Singaporeans who are looking to buy residential property, principally for owner-occupation,” says Lee, speaking to reporters on April 27.
The MAS Macroeconomic Review, released at noon on April 26, painted a rather bleak picture of the global and local economy. It was followed less than 12 hours later by the announcement of a new set of cooling measures targeted at the persistently hot property sector.
With immediate effect, Singapore citizens buying their second residential property are to pay an additional buyer’s stamp duty (ABSD) of 20%, up from 17% previously. For those buying their third and subsequent properties, the applicable ABSD will now be 30%, from 25%. Foreigners will be the hardest hit: Their applicable ABSD has been doubled to 60% from 30%.
