ABSD increase impact foreigners and Entities most
Foreign buyers and businesses have become more active in the Singapore property market in recent year, and so the government thinks that the higher stamp duty rates, together with an additional 30% to 35% stamp tax for foreigners and companies, will discourage speculative buying and bring property prices down.
The increase in ABSD is projected to hinder the influx of foreign capital into the property market, particularly in core regions and Sentosa properties that rely heavily on foreign purchasers. However, the impact on RCR and OCR areas such as Bishan, Toa Payoh, Punggol, and Sembawang is expected to be minimal, because lets be honest, foreigners seldom go for these locations la.
Fortunately, the increase in ABSD will not harm first-time buyers. As a result, those who want to establish a family or buy their first home can KEEP CALM AND CARRY ON.
Andy's Take: 😱Despite the rise in ABSD, the recent launch of Blossoms by the Park has demonstrated that sales remain strong. 198 units in the 99-year leasehold property near Buona Vista MRT station were sold at an average price of S$2,423 per square foot (psf) just two days after the ABSD rise. Singaporeans made up the bulk of buyers, followed by Singapore permanent residents and then foreigners. Surprisingly, some buyers paid the new 60% ABSD. Ah, you see, the government is trying to cool down the property market, because it's just too hot with all the foreign buyers. Wah, with so many measures in place to keep the prices down, and the COVID situation still going on, it's quite unlikely for the market to crash now lah. But hor, sure will crash one day, just not anytime soon.
Property market sure will crash one day, but honestly it won’t be now. With the numerous cooling measures in place but price remains in such strong uptrend, support is strong. KEEP CALM AND CARRY ON – Andy