Private home prices look set for a welcome correction amid higher ABSD rates

IS THERE a crazy rich foreigner who will pay 60 per cent Additional Buyer’s Stamp Duty (ABSD) to buy a home in safe haven Singapore? It will take about 12 years of price growth at 4 per cent per annum just to recoup the ABSD payable.

With effect from Apr 27, Singapore citizens and permanent residents (PRs) buying second and subsequent homes will pay higher ABSD rates. The increase will also apply to foreigners as well as entities or trusts – except for housing developers – buying any home.

For foreigners, ABSD rates will be doubled from 30 per cent to 60 per cent. Citizens and PRs buying second homes will pay ABSD of 20 per cent and 30 per cent respectively, up from 17 per cent and 25 per cent.