Despite the levy to cool the once- runaway property market, demand for high-end homes in Singapore remains firm in the midst of many more new condominium projects completion and more new launch condo projects in the pipeline according to one local developer.
The Additional Buyer Stamp Duty (ABSD) is government effort to cool the property prices by the implementation of a levy of higher disproportional premiums for non-Singapore citizens when purchasing properties in Singapore and this applies only to residential properties. While all buyers pay a basic stamp duty of 3 percent, foreigners have to pay an additional 15 percent in stamp duty hence the Additional Buyer Stamp Duty or ABSD in short. Permanent residents of Singapore pay 5 percent ABSD for their first property and 10 percent for any other subsequent purchase. If the government so decides to remove the additional stamp duty in Singapore’s property market, there will be a rush to buy homes due to pent up demand which had been held back due to the ABSD as many property owners view Singapore as a global city and a haven in a world fraught with mounting geopolitical tension and financial turmoil.