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~
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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.
Slow and steady wins the race 😊
Why ? Still got people buying [惊讶][惊讶][惊讶]
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.