Singapore property has become more expensive for foreign buyers overnight.
Yesterday (Thursday), the government announced new cooling measures for the red-hot property market in the city-state.
For foreigners, an additional 5 percent additional buyers Stamp Duty (ABSD) was added to the previous 15 percent tax.
It explained that raising rates and tightening loan-to-value (LTV) limits on residential property purchases, is an effort to cool the property market and keep price increases in line with economic fundamentals”.
Recent reports revealed that prices and activity in Singapore property market had risen significantly during the three months ending June 2018, with some market watchers suggesting that prices could soon recover to their 2013 peaks
Lawrence Wong, Minister for National Development, said: “There is a large supply of units coming on stream and interest rates are going up. We want to avoid a severe correction later, which can have more destabilising consequences, hence we are acting now to maintain a stable and sustainable property market.
The ABSD for Singapore property was increased by 5 percent for Singapore citizens and permanent residents (PRs) buying second and subsequent homes, for foreign buyers and by 10 percent for entities.
There is no change for Singaporeans and for PRs purchasing their first residential property.
Yesterday we published a story focusing on the effect of property market restrictions on overseas buyers.
We feel this move will, at least in the short term, make Singapore property investments less attractive for foreign buyers.
This could be good news for Bangkok, especially for high-end properties with prices at the THB 300,000+ per sqm level.