More property cooling measures? Locals buying their first homes could be hit
Don’t rule out locals paying 5 per cent ABSD for transactions over S$1 million
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MORE than 13 years ago, the Additional Buyer’s Stamp Duty (ABSD) was introduced for the purchase of homes in Singapore. Over time, ABSD rates have generally increased.
For example, when ABSD was rolled out in December 2011, the rate of 3 per cent applied to Singapore citizens buying their third and subsequent home. Today, the ABSD rate for locals is 20 per cent for a second home and 30 per cent for a third and subsequent residential property. Foreigners and entities buying homes now pay ABSD of 60 per cent and 65 per cent respectively versus 10 per cent when ABSD was first introduced.
ABSD is paid in addition to Buyer’s Stamp Duty, where the rates for homes range from 1 per cent for the first S$180,000 to 6 per cent for the remaining amount over S$3 million.
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