Luxury homes reel from anti-money laundering blitz

IT’S generally thought that slowing economic growth and higher inflation do little damage to the demand for luxury goods as the wealthy have more buffers to deal with these challenges. 

However, a chill wind is blowing through luxury homes here. Blame this on the hike in Additional Buyer’s Stamp Duty (ABSD) - from 30 per cent to 60 per cent - for foreigners buying homes here. Foreigners have traditionally been an important source of demand for luxury apartments in prime districts.

Adding to the chill felt in luxury homes is the headline-grabbing S$2.8 billion money laundering case that has seen 10 foreigners arrested to-date.