Stamp duty forecast not proxy for property market

[SINGAPORE] The Budget's estimated 30 per cent drop in stamp duty revenues may not necessarily foretell a dire year for the property market, an analysis by The Business Times has found.

According to Finance Minister Tharman Shanmugaratnam's Budget announced on Friday, revenue from stamp duties is expected to fall to $2.8 billion for the year ending March 2015, compared to an estimated $4.1 billion for the year ending March 2014.

That projected 30 per cent reduction is the sharpest among the key sources of income for the Budget, and at first glance it would seem troubling.