Higher ABSD: S’pore citizens buying 2nd home to pay 20%, up from 17%; rate for foreigners doubles

In a joint statement, the Ministry of Finance, National Development Ministry and Monetary Authority of Singapore said the Additional Buyer’s Stamp Duty (ABSD) rate for foreigners buying any residential property will be raised from 30 per cent to 60 per cent - the highest increase.

For Singapore citizens, ABSD for the purchase of their second property will be raised to 20 per cent from 17 per cent and to 30 per cent from 25 per cent for their third and subsequent properties. Singapore permanent residents (PR) will see ABSD raised from 25 per cent to 30 per cent on their second property and from 30 per cent to 35 per cent for their third and subsequent properties.

Foreigners bear the brunt of the increases, with ABSD on any property purchase doubled from 30 per cent to 60 per cent. A 65 per cent rate will apply to residential properties bought by entities or in trust, up from 35 per cent. The new rates take effect on Apr 27, 2023.

Entities or trusts purchasing any residential property will pay a rate of 65 per cent, up from 35 per cent. This will not apply to housing developers.

Based on 2022 data, the increases will affect about 10 per cent of residential property transactions.

According to flash estimates from the Urban Redevelopment Authority, private home prices gained 3.2 per cent in the first quarter of 2023, compared with 0.4 per cent in the fourth quarter of 2022. Year-on-year, prices rose by 11.3 per cent last quarter.

The Government said ABSD rates for citizens and PRs purchasing their first residential property - which constitute about 90 per cent of residential property transactions - will remain at 0 per cent and 5 per cent respectively.