Wednesday, 23 July, 2014

Published July 18, 2014
Ease ABSD for Singaporeans, urges Wing Tai boss
But it should be kept for foreigners as hot money remains an issue
BT 20140718 KRCHENG 1182664

Mr Cheng: 'This can be a win-win situation for both the industry and the domestic investor market.' - FILE PHOTO

[SINGAPORE] Wing Tai chairman Cheng Wai Keung has a solution for the property sector's angst over the ABSD (additional buyer's stamp duty): "Keep ABSD for foreign buyers but fine-tune it for Singaporeans who wish to buy more than one property."

He argues that the ABSD should be retained for foreigners who buy residential property, as the danger posed by foreign hot money still lurks.

However, there is scope to fine-tune the ABSD for Singaporeans, given that the total debt servicing ratio (TDSR) framework is in place to limit their debt exposure.

Foreigners buying any residential property here pay 15 per cent ABSD; the same rate applies to buyers that are corporate entities.