Singapore unveils surprise measures to cool property market, doubles stamp duty for foreigners

The tax is now 60 per cent for foreign buyers, while citizens and permanent residents will see small increases when buying second and subsequent properties

The cooling measures come as the Ministry of National Development notes ‘renewed signs of acceleration amid resilient demand’ in home prices

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A public housing construction site is seen in Singapore in March. Photo: AFP

Published: 1:29am, 27 Apr 2023Updated: 4:04pm, 27 Apr 2023

Singapore raised taxes on private property purchases in a surprise move late on Wednesday night that includes a doubling of stamp duties for foreigners to an eye-watering 60 per cent.

Authorities in Singapore, where real estate is a safe haven investment for wealthy foreigners, keep close tabs on property prices to ensure housing remains affordable for locals and stays in step with economic fundamentals.

The additional buyer’s stamp duty (ABSD) for Singapore citizens and permanent residents will also face increases but much smaller ones, and only on their second and subsequent properties, according to a joint statement from the finance ministry, national development ministry and central bank.

The ABSD on Singaporeans’ second and subsequent home purchases will rise to 20 per cent from 17 per cent, and 30 per cent from 25 per cent, respectively.

Meanwhile, those for permanent residents will rise by 5 percentage points to 30 per cent and 35 per cent, respectively, for their second and subsequent properties purchases. The revised rates will apply from Thursday.

The government said in a news release that property prices showed “renewed signs of acceleration amid resilient demand”.