27/04/2023
This policy came out of nowhere and really caught people off guard!
The new adjustment in ABSD mainly targets foreign buyers, as local buyers who purchase a second property only account for 10% of the market, so the impact on them is minimal.
After all, not many local buyers were buying a second property under the previous additional stamp duty of 17%. In fact, this new policy provides more advantages for local first-time buyers.
Last month, high-end apartments in various CCR areas sold well, and many foreign buyers with budgets of around SGD 3 million bought properties in Singapore. This budget can buy 2 to 3 bedroom apartments in the city center CCR area. This is mainly because, in the midst of economic turmoil in other countries, foreign buyers see Singapore as a safe haven.
Now, with foreign buyers and trusts facing ABSD of 60% to 65%, these luxury properties may return to the local market. In the coming months, CCR properties that were previously unsold may continue to be discounted, just like some developments in March and April.
So local buyers who are prepared, with a budget of SGD3million, can consider CCR properties without having to compete with cash-rich foreign buyers.
This policy is still beneficial as it protects Singapore's property market and reduces the occurrence of speculation.
As the saying goes, it's best to buy early, and don't expect this cooling measure to cause property prices to plummet. The probability is low, and prices will most likely remain stable.
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