Foreigners will pay 60 per cent Additional Buyer's Stamp Duty (ABSD) when they purchase a residential property in Singapore with effective from 27 April 2023.

Singaporeans who are buying a second property will pay 20 per cent ABSD instead of the previous 17 per cent. 

Singapore permanent residents (PRs) buying their second residential property will pay 30 per cent ABSD now.

The latest property cooling measures for this year 2023 is necessary for the Singapore Government to promote a sustainable real estate market.

Singapore renowned property developer, City Development (CDL)'s share price is expected to tumble when the Singapore Exchange open for trading on Thursday morning. Other public listed developers include Wing Tai and Ho Bee.

Property estate agencies Propnex and APAC Realty (ERA) share prices will likely plunge too. 

Latest ABSD Rates for Singapore Residential Property

Additional Buyer’s Stamp Duty 1		ABSD Rates from 16 Dec 2021 to 26 Apr 2023	ABSD Rates from 27 Apr 2023
Singapore Citizens	First residential property	0%	0% (No change)
	Second residential property	17%	20% (Revised)
	Third and subsequent residential property	25%	30% (Revised)
Permanent Residents (PR)	First residential property	5%	5% (No change)
	Second residential property	25%	30% (Revised)
	Third and subsequent residential property	30%	35% (Revised)
Foreigners	Any residential property	30%	60% (Revised)
Entities	Any residential property	35%	65% (Revised)
Trustees 3	Any residential property	35%	65% (Revised)
Housing Developers 4,5	Any residential property	35% (remittable, subject to conditions) + 5% (non-remittable)6	35% (remittable, subject to conditions) + 5% (non-remittable)6 (No change)

1 The ABSD residential property count includes properties that are owned wholly, partially, or jointly with others.
2 The ABSD (Trust) rate was for the period from 9 May 2022 to 26 April 2023.
3 ABSD (Trust) is payable by a trustee of any trust when acting in that capacity, but excludes the following: (a) trustee for a collective investment scheme when acting in that capacity; (b) trustee-manager for a business trust when acting in that capacity; (c) trustee for a housing developer when acting in that capacity. (a)/(b) and (c) are already subject to ABSD (Entity) and ABSD (Housing Developer) respectively, when they acquire residential property.
4 Housing developers refer to entities in the business of housing development (i.e. construction and sale of housing units) with respect to the subject property acquired. These include trustees for housing developers.
5 Housing developers may apply for remission of this ABSD, subject to conditions.
6 This 5% will not be remitted and is to be paid upfront upon purchase of residential property.

What will happen to new launch projects this year?

The property market sentiment will be adversely affected by the new ABSD rates.

Developers may postpone their launch dates for the upcoming new project launches including but not limited to The Continuum, Blossoms by the Park, The Reserve Residence and Tembusu Grand.

The last thing they want is the sales figures and response to be lackluster during the weekend launches. 

Property research statistics revealed that 90% of residential property transactions based on 2022 came from Singaporeans and Permanent Residents (SPR) buying their first residential property.

Hence, the new ABSD rate increases will affect about 10% of residential property transactions.

Why is there new cooling measures in 2023?

Ministry of National Development (MND) has derived from 1Q2023 statistics that Singapore property prices showed renewed signs of acceleration amid resilient demand.

There has also been renewed interest from local and foreign investors in our residential property market.

Housing loan rate is hovering around 4 per cent. Moreover, the new launch projects outside central region (OCR) and rest of central region (RCR) debut in excess of $2,000 PSF.

If left unchecked, prices could run ahead of economic fundamentals, with the risk of a sustained increase in prices relative to incomes.

Tthe Government is seeking to avoid a worst case scenario, whereby a property crash which can have a devastating effect on our banks and financial system.

When will the property demand drop?

Demand and property price increase when there is a shortage of supply.

When there is supply over demand, property price will rein in.

With almost 40,000 public and private residential property completions in 2023, and about 100,000 units expected to be completed from 2023 to 2025, there will be a significant housing supply to cater to our needs. 

Did you expect the cooling measures?

Propertyforsale Managing Director, Mr Chia said that the new cooling measures did not come as a surprise to him.

"Considering that many buyers from China have been buying multiple units at luxury condominiums and hitting the news headlines, it is a matter of time that the Government intervene the property market with new cooling measures," said Mr Chia.