GCB market may be hurt by higher taxes and weaker wealth creation

Every Singapore citizen can buy one private home here, without incurring additional buyer’s stamp duty (ABSD). Permanent residents (PRs) buying their first home pay ABSD of 5 per cent.

The ABSD rate for home purchases was raised in late 2021 for all buyers, except citizens and PRs who are buying their first home.

The purchase of landed homes here is restricted to citizens, while PRs can buy such homes, subject to government approval. Higher ABSD rates are seen to have little impact on demand in the Good Class Bungalow (GCB) market, as ultra-high-net-worth buyers typically allocate such homes as their first home.