The government will be imposing additional stamp buyer's duty for private residential property. This new rule aims to help cool the property market and moderate the investment demand for private residential property.
Additional Buyer's Stamp Duty (ABSD) for private residential property
The government will be imposing an additional 3 to 10 percent of stamp duty on certain categories of private residential property purchases. This measure takes effect from 8 December 2011.
ABSD for different categories of buyers
Under the new rule, Singaporeans buying their 3rd and subsequent property will pay an additional 3 percent stamp duty. Permanent Residents buying their second and subsequent property will also face an additional 3 percent stamp duty. Foreign buyers and companies will pay a higher additional stamp duty of 10 percent.
Other private residential property buyers such as Singaporean first timebuyers and upgraders will not be affected by the implemented changes. HDB buyers will not be affected by this new rule too.
The ABSD is calculated based on the purchase price or market value of the property, whichever is higher. In the event where the purchase is made jointly by 2 or more parties under different buyer categories, the higher ABSD rate will apply.
Government's move to stabilize the volatile property market
The government expects the ABSD to cool investment demand for private residential property and bring about a more stable and sustainable property market in Singapore.
The government says it will also continue to monitor the property market and ensure that property policies are in line with changes in the property market.
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