The distortionary effects of ABSD on the property market

I READ the article Let local couples jointly own two private homes without incurring ABSD (BT, Jan 8, 2024) with interest and thought that the suggestion certainly makes sense. Why would two individuals be allowed to own two separate properties, but a married couple be restricted to one? Certainly, one could view this as a clear disincentive to tie the knot.

On the other hand, one could also argue that owning two properties is decidedly a “first world” problem that few Singaporeans can even dream about. While the writer’s suggestion is entirely logical in my view, I could also understand why the authorities may want to discourage this from a macro-prudential as well as “equality” standpoint.

However, I would like to point out that the impact of Additional Buyer’s Stamp Duty (ABSD) goes far beyond couples trying to own multiple properties. It is another group of people, who ironically cannot afford to buy the additional property, who arguably suffer the most. These are the homeowners genuinely looking to upgrade or downgrade from their current homes and have the budget for only one property.