Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Mon
Sep 22nd
Lost Password? Register
Home arrow News arrow Asia arrow Singapore hits foreign property buyers with an extra 10% stamp duty

Singapore hits foreign property buyers with an extra 10% stamp duty

Friday, 16 December 2011

Image

Singapore has introduced new taxes on residential property purchases to curb excessive investment by foreign buyers.

Foreigners and corporate entities will have to pay an unprecedented extra 10% stamp duty when buying a residential property in Singapore, the government confirmed.

There will also be an extra 3% on stamp duty permanent residents purchasing a second home and for citizens buying their third residential property.

‘We have always had open markets and must keep them that way. However, the reality is that investment flows into our property market are now larger than before, and unlikely to recede as long as interest rates remain low. The additional buyer's stamp duty should help cool investment demand, and avoid the prospect of a major, destabilizing correction further down the road,’ said Finance Minister Tharman Shanmugaratnam.

Singapore has been attempting to rein in prices since 2009, when the government barred interest only loans for some housing projects and stopped allowing developers to absorb interest payments for apartments still being built.

Home prices are 13% above the high seen in the second quarter of 1996 and 16% higher than the more recent peak in the second quarter of 2008, according to the government.

Foreign purchases accounted for 19% of all private residential property purchases in the second half of 2011, up from 7% in the first half of 2009.

‘This is severe and likely to have a significant and negative impact on the residential property market, especially in prime districts,’ said Wendy Koh, an analyst at Citigroup. The latest taxes could be the catalyst for price cuts and result in a significant decline in residential property sales volume, she added.

The move will curb investment demand for private residential properties drastically, especially demand from non-resident foreigners, according to Nicholas Mak, an executive director at SLP International Property Consultants in Singapore.

‘In the next one to two months or so, the home buying demand from non-resident foreigners will almost dry up,’ he said.


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here






West Tower

West Tower

Car park

West Tower

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

West Tower

Asia: Top Headline

Growth in land prices slows in China as Bangkok, Jakarta and Phnom Penh power onGrowth in land prices slows in China as Bangkok, Jakarta and Phnom Penh power onGrowth of prime land prices in China have slowed but other parts of Asia such as Bangkok, Jakarta and Phnom Penh are powering ahead, according to the latest index.

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

Estate and lettings agents UK advert campaign launched

The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have launched a new regional TV campaign to raise awareness among consumers of the importance of using an NAEA or ARLA licensed agent.

Finance Update

Skipton announces new buy to let fixed rates

The Skipton Building Society has launched a new range of buy to let seven year and five year fixed rate products.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Asian property and real estate news feed (RSS)