Real Estate Stocks Fell As Singapore Hikes Tax Rate! How Do You View The Policy?

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2023-04-27
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Singapore is hiking property taxes, doubling the rate for foreigners to 60% and charging a 20% stamp duty for citizens buying a second home

Real estate stocks were the biggest losers in Singapore following the announcement of the new measures. $CITY DEVELOPMENTS LIMITED(C09.SI)$ -5.6%, $UOL GROUP LIMITED(U14.SI)$ -4.73%; $KEPPEL CORPORATION LIMITED(BN4.SI)$ -0.97%, $CapLand IntCom T(C38U.SI)$ -0.98%

 

Both local and foreign buyers of residential properties will now have to pay higher additional buyers' stamp duties, with the biggest increase being the doubling of stamp duties for foreign buyers from 30% to 60%.

For Foreigners: 30% —> 60%

This means that a foreign buyer who purchases a home worth 2 million Singaporean dollars ($1.5 million) now has to pay an ABSD of 1.2 million Singaporean dollars, on top of the purchase price.

For Singaporeans buying a second/third home: 17% —> 20%/ 25%—> 30%

The ABSD for Singaporeans buying a second home was raised from 17% to 20%, and the tax rate for the third one is raised from 25% to 30%.

Singaporeans cares about affordability of housing

The Singaporean government has announced a new round of cooling measures to address concerns that surging property prices "could run ahead of economic fundamentals." The government hopes that this will help moderate investment demand and alleviate the tight housing market for both owner-occupation and rental.

A poll in December last year showed that two-thirds of Singaporeans believed that the government should pay more attention to the affordability of housing.

Judging from the ratio of house price to income, Singapore's house price has risen sharply since the epidemic, ranking 32nd in the world and 17th in Asia.

 

Do you support the government policy?

Will the new policy inluence your investing plans?

How do you view the policy?

Leave your comments and win tiger coins~

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Comments

  • LMSunshine
    2023-04-27
    LMSunshine
    THX loads @Tiger_comments for this IMPT update❣️Comment for coins❣️@PhilipChow @alylady @moliya @maricel @Sonoma @LuckyPiggie @Doge2theMoon @equitygenius @StayHome @SGboy @Sandyboy @Stayclose @DMTrader @BettyT @Bunta @tigjun21 @JohnL @jace0777 @DoreamonGo @TTrade @VonCat @boonk @Trevelyan @jgaldon @fxaw @Kok @Agxm @Dodonan @BubTigger @Decromer @OddEyeCircle @StarAce @zerolih @WuDi @Asphen @MasterStonker @MoneyCub @MiniAce @StayCalm @ee244c @Huangyulee @tarotsgirl @Lord_Kuberan @ShengSoon @jllwang @Shiella @cristine @Gunawanh @WLing @Zash @Snoopymint @GrumpyDino @YTGIRL @VivianChua @MSJYJ @YJ13 @Bons @bernardtayet @Kindryl @angyenyen @KBWSG @JazzyTizzy @icycrystal @Alupigus @tigernoob @MojoStellar @BillionaireN @aiyoh79 @Moolele @drandy @eeth @Zack44 @Cyberguard @kaite @BlueDragon @Tonyoh @AlfonsoDex @InvisibleTig @AlanTiger @kwk @InvisibleP @miaomiao007 @TigerHulk @HappyRat @Zacv @Alconies @justforcoins @cubinvestor @我i168 @ZeroG @JennyChiang @MGOH
  • LMSunshine
    2023-04-27
    LMSunshine
    I will not buy property stocks as the demand will reduce which means the companies’ earnings will be affected and share price will drop.Moreover,a 🇺🇸 recession is very likely so property stocks will drop further.Comment for coins❣️
    @SR050321 @CYKuan @HelenJanet @rL @Universe宇宙 @Jadenkho @melson @Mrzorro @GoodLife99 @SPOT_ON @Kaixiang @BenjiFuji @RDPD富爸穷爸 @SirBahamut @b1uesky @MHh @PJoo @Pepermintpat @RiciaYang @jat @Omega88 @爱上投资学 @Zeniv @Elon2 @Yonhuat @Joker_Smile @grizzlylee @FrankieRed @spkek @snoopy123 @psk @pekss @amroui @Ericdao @StickyRice @StarLuck @Shyon @Success88 @kungpao @CL Wong @Derrick 1234 @MeowKitty @Thonyaunn @紫南 @Zarkness @Ah_Meng @Ratt @Tigress02 @Viv22 @aunteenat @Cory2 @airui @0QH @Cris0 @Brocco @AhGong @deal2deal @nickname168 @Ccl2 @Lcc73 @HLPA @WanEH @markele @pipiso @hlw8888 @Huiz84 @Kingcat @Jo_Tan @RedpillBluep @Furore @breAkdaWn @boardy @Soyabean89 @ngph @KYHBKO @Lionel8383 @Downton @SanWangtikup @Setia100 @th0mastan @LesterTan @IAS @HSTew @Kerrisdale
  • Shyon
    2023-04-27
    Shyon
    Yeah I support the government policy to calm down the overheated sg properties market. This also give opportunity for those who wants to enter property market for their own use first home. @rL @LMSunshine @Aqa @GoodLife99 @Universe宇宙 @koolgal
  • Bons
    2023-04-27
    Bons
    I strongly support this policy. the government has an obligation as it may stated in the article to ensure the affordability of the housing. the uncoltrollable raise if the property will make the living cost which was already high raise higher and higher. that is not good for the worker whom was needed for the city development to keep living in the Singapore. this cycle of raising living aspects which keep circling higher has to be slow down if not to be stopped. as for the investment plan, for now avoiding stocks or REIT which is focusing in property is a wise move.
    yours @Viv22 @LMSunshine @KYHBKO @Tigress02 @Universe宇宙 @kungpao @wine18 @cindyft @Xian789 @MTok
  • Omega88
    2023-04-27
    Omega88
    Yes, it's a good policy to tax the rich. However, I'm sure that there's loopholes to overcome these new policies. In the past, decoupling or transferring properties to your kid when they turn 16 are common.

    Sky high property prices and high interest rates definitely deter me from buying a 2nd property. Hence, it's still good to continue investing in equities and wait for better opportunities.

  • MHh
    2023-05-01
    MHh
    Of course support the policy. It’s might to cool the market so that locals have a chance to buy property especially for young families. It’s bad news only for the super rich foreigners looking to wipe up good properties here. Since they are rich anyway, the government should try to get more money from their transactions! Win win for locals!
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