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

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~

# Singapore Tops 2022 World Most Expensive City

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  • LMSunshine
    ·2023-04-27
    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
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    • MasterStonker
      thanks 👍
      2023-04-27
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    • icycrystal
      thanks for tagging
      2023-04-27
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    • Shyon
      🚀🚀🚀
      2023-04-27
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  • LMSunshine
    ·2023-04-27
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    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
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    • Universe宇宙
      [OMG]
      2023-04-28
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    • Success88
      Thx
      2023-04-27
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    • 0QH
      thanks for tag
      2023-04-27
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  • Shyon
    ·2023-04-27
    TOP
    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
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  • Bons
    ·2023-04-27
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    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
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  • Omega88
    ·2023-04-27
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    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.

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  • MHh
    ·2023-05-01
    TOP
    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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  • WanEH
    ·2023-04-30
    I support the Singapore government policy as it will help the resident to buy their house at affordable price. it will limit the foreigners to push the housing price. I don't think it will affect my investment in Singapore stock. in fact it give me more confident.
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  • Skang2
    ·2023-04-28
    TOP
    No matter what happens. This is a no doubt knee jerk reaction. People will have to digest and adapt to it. Once settled down, soon another measurement coming out again. The rich especially Asia & SE Asian will weigh the pros and cons. US buying pty in Singapore akin to local's benefits. The wealthy will decide quite fast. Is only the above average trying to max out the opportunity holds back. Good luck to all and buy Singapore banks ( pillar of the nation )


    Slow and steady wins the race 😊
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  • Mrzorro
    ·2023-04-28
    TOP
    For sure I will support the government policy! Hopefully that will help Singaporeans on the housing problem. But that wont effect my investment plan. [LOL]

     

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  • AliceSam
    ·2023-04-28
    65% of the Additional buyer stamp duty for buying a property in Singapore [惊讶][惊讶][惊讶]
    Why ? Still got people buying [惊讶][惊讶][惊讶]
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  • MasterStonker
    ·2023-04-27
    The hikes will torture the current slump even more. High interest rates always kill property markets so MAS should be cautious on the sentiment which is already down now.
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  • fxaw
    ·2023-04-27
    TOP
    I support the policy, the problem is not the 10% volume of transactions that have been done by foreigners, but the increased prices impact.
    For me this 'targeted' policy is quite consistent with the last major policy whereby the ex private property owner needs to wait 15 months to buy HDB (except they're more than 55 yo and buy max 4 room types).
    Similar like the ex private property owners pushed HDB prices, the foreigners pushed private property prices with their excess money.
    In paper, I lost some my developer's stock investment but I believe this one is needed in this timing.
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  • icycrystal
    ·2023-04-27
    TOP
    the change in policy, may affect demand for a period of time. however, overtime, pple will come flogging to invest in properties again. Singapore is a stable country and those who can afford, will most probably consider Singapore as a safe haven for investment given the stability in the government. @MoiYen @geb @QWP @bkghh @myt please share your thoughts [smile] [smile] [smile]
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  • SirBahamut
    ·2023-04-27
    TOP
    The whole policy seems to be targetted at foreign investment. But based on data, foreign investment is not a large part of the purchase. Im relatively neutral on real estate
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  • 0QH
    ·2023-04-27
    these measures are not cooling enough for the hot property market. For the average local who want to earn from property, maybe they should look at the stock market instead. i will recommend tiger brokers as there are many vouchers to win. [Happy]
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  • airui
    ·2023-04-27
    this will not affect those with ultra high net worth. Those slightly well to do who are buying condos in the below 3mil range maybe slightly affected. I guessed the PR application rate may go up.
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  • Ericdao
    ·2023-04-27
    TOP
    Government need to have proper control over the property n ensuring it's not a bubble. With high IR, it's unimaginable housing price can continue to go up. For property investor n developer, sure is a bad news but this policy is needed to keep property from a full collapse in crisis. This also prevent oversea speculative investment which is good to keep our country safe
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  • 对新加坡房地产市场当然会照成很大的压力,因为60%的印花税率确实非常高了,对于以投资不动产达到升值或者保值目的国际买家来说,这个税率已经投资了未来的升值预期,所以这部分买盘会流失。楼市买盘大于卖盘的局面会被明显改变。
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  • Derrick_1234
    ·2023-04-27
    TOP
    I support the government policy and the new policy will not influence my investment plans
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  • CL_Wong
    ·2023-04-27
    Yes, I support the government policy, the new policy will not influence my investing plans.
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