Number of owner-occupied private homes rose more than 3 times that of investment homes from 2020 to 2024: MND
Such owner-occupied residences rise by 27,000 units over the period
THE number of owner-occupied private residential properties rose thrice as quickly as that of investment residential properties between 2020 and 2024, up 27,000 units at 263,000 units.
In comparison, non-owner-occupied residential properties increased by 8,000 units, from 166,000 to 174,000 units, over the same period, said Minister for National Development Desmond Lee in a written response to a parliamentary question on Tuesday (Feb 4).
Workers’ Party Member of Parliament Louis Chua had requested a breakdown on the number and value of primary and secondary sales for owner-occupied private and investment homes.
He also asked if the government had observed any changes in the composition of such private properties in the last five years.
In the written response, Lee attributed the larger increase in the number of owner-occupied private homes to measures introduced over the years to “prioritise housing purchases for genuine owner-occupation”. These measures include raising the Additional Buyer’s Stamp Duty (ABSD) for purchasing second and subsequent properties.
In April 2023, the government hiked ABSD rates for residential properties, in a round of cooling measures aimed at curbing investment demand. The rates for Singaporeans rose from 17 per cent to 20 per cent on their purchase of a second property, and from 25 per cent to 30 per cent for third and subsequent properties.
Permanent residents saw ABSD rates rise to 30 per cent for second properties, and 35 per cent for third and subsequent properties. Foreigners faced the brunt of it, with ABSD rates doubling to 60 per cent for any residential property purchase.
Lee added that it was not meaningful to compare data between primary and secondary sales of owner-occupied private homes, given that “a large proportion of primary sales involve uncompleted units that do not have owner-occupation status”.
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