The government yesterday announced more measures to cool the property market.
With immediate effect, an Additional Buyer’s Stamp Duty (ABSD) will be imposed on certain categories of residential property purchases:
The decision to impose a high stamp duty on foreign buyers is in view of the large pool of external liquidity and strong buying interest from abroad, and the relatively small size of the Singapore market. Foreign purchases account for 19% of all private residential property purchases in 2H2011.
I think this is something way overdue.
The 10% ABSD could have a psychological as well as financial impact on foreign and corporate buyers, especially those short term speculators. People might not feel a 1, 2, 3, or 5% stamp duty but when it crosses the double digit mark, the feeling is somehow different.
The full press release of the announcement can be found here: