A steep increase in the Additional Buyer’s Stamp Duty rates for residential properties as Singapore unveiled its third round of cooling measures since 2021 late last night. Additional buyer's stamp duty doubled to 60% for foreigners!
The property market looked to have run ahead of economic fundamentals and that is something the Government is concerned with.
In the past one year, there has been an increase in the proportion of foreigners buying residential properties in Singapore. From a low of 3.1% in 1Q 2022, this proportion has increased steadily to hit 6.9% in 1Q 2023. This is the highest since 1Q 2018 when the proportion was 7.3%.
Nationality by Residential Status | 2021Q1 | 2021Q2 | 2021Q3 | 2021Q4 | 2022Q1 | 2022Q2 | 2022Q3 | 2022Q4 | 2023Q1 |
Company | 0.2% | 0.3% | 0.1% | 0.1% | 0.1% | 0.3% | 0.2% | 0.2% | 0.7% |
Foreigner (NPR) | 4.1% | 3.9% | 3.2% | 4.0% | 3.1% | 4.8% | 4.6% | 6.9% | 6.9% |
Singapore Permanent Residents (PR) | 16.6% | 16.9% | 15.0% | 15.0% | 18.0% | 17.2% | 16.0% | 20.8% | 20.2% |
Singaporean | 79.2% | 78.9% | 81.7% | 80.9% | 78.8% | 77.7% | 79.2% | 72.1% | 72.3% |
Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
* Non-residential properties (all sale types)
Source: URA, Huttons Research (data downloaded on 27 Apr 2023)
The opening up of Singapore borders to the world is one factor behind the increase. This allowed more foreigners to relocate to Singapore. The second reason could be due to the relaxation of borders by China in Jan 2023. There has been an increase in enquiries from Chinese corporates and UHNWIs looking to set up their headquarters and family offices in Singapore in recent months.
What are the new property cooling measures?
How might the higher ABSD affect the property market in 2023?
Will buying demand shift to the rental market?
Would you like more information? Let's chat!
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Cindy Kew | R067569E | +65 97336818
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