By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Markets > Stocks > Singapore’s surprise property tax hike a ‘freezing measure’ for foreigners
Stocks

Singapore’s surprise property tax hike a ‘freezing measure’ for foreigners

News Room
Last updated: 2023/04/27 at 2:41 AM
By News Room
Share
5 Min Read
SHARE

© Reuters. FILE PHOTO: A view of private residential condominium properties at the Orchard district in Singapore April 27, 2023. REUTERS/Edgar Su

By Chen Lin and Xinghui Kok

SINGAPORE (Reuters) – Vera Liu, a Singapore property agent, was panicking in the wee hours of Thursday morning after new property taxes saw two of her deals fall through.

Singapore raised levies on private property purchases in a surprise move late on Wednesday night to cool the market, including a doubling of stamp duties for foreigners to an eye-watering 60%.

Liu’s foreign buyer pulled out of a purchase of a S$10 million ($7.50 million) luxury condominium along Singapore’s Orchard Road shopping belt, while another interested buyer who already transferred funds into Singapore is also holding off.

“The door is now closed (to foreign buyers),” said Liu. “I was panic calling my buyers near midnight, it’s crazy, the adjustment is so high. It could mean a few million dollars more in duties for some buyers.”

Ever since a run on purchases in 2018, the government has timed announcements of any tightening moves closer to midnight. The new rates came into effect on Thursday.

The hike in duties is one of the harshest tightening moves in the market in a long time and comes after a rush of foreigners back into Singapore’s property market in recent years.

Policymakers are growing concerned that foreign investors increasingly see Singapore property as a hot asset class, squeezing out locals.

National development minister Desmond Lee said without “early pre-emptive measures, we may see investment numbers, both by locals and by foreigners grow, and that will add stress to Singaporeans who are looking to buy residential property”.

While taxes were also increased for local buyers of second and subsequent properties, analysts expect the largest impact to be felt by foreign buyers of luxury properties.

The government said the new rates would impact about 10% of private property transactions.

Christine Sun, the senior vice president of research & analytics at OrangeTee & Tie, called it a “freezing measure” for foreign buyers.

“Luxury home sales may experience more impact and a temporary pullback in demand from these buyers.”

Sun said the move could be in anticipation of more Chinese buyers — who make up the bulk of foreign luxury home purchases — in the coming months.

The city-state’s property market is unusually resilient, with prices rising 8.6% last year following a 10.6% jump in 2021. This contrasts with declines seen in other property markets such as China, New Zealand and Canada.

Shares of Singapore property companies fell on Thursday, with City Development and UOL Group, which have large Singapore footprints, hit hardest.

A SHORT-TERM SOLUTION

Analysts, however, are unsure if the new rates can really cool the market.

Sun said while prices may slow for a while, the super-rich may continue to buy, keeping prices elevated.

“From past experience, demand will usually rebound after a few months as supply remains low and those who need a home will still need to buy one eventually,” she said.

Stamp duties for foreigners were last raised to 30% from 20% in December 2021, causing a dip of 16.5% in condominiums bought by foreigners in 2022. Still, prices have not let up.

Nicholas Mak, chief research officer at proptech company MOGUL.sg, said there were limitations to the measures if just 10% of purchases were affected.

“There’s little impact on the other 90%,” said Mak, who has been analysing Singapore property for more than two decades. “If that’s the case, how do you cool the market? You have a petroleum plant on fire and these people are not using the right tools to fight the fire.”

($1 = 1.3342 Singapore dollars)

Read the full article here

News Room April 27, 2023 April 27, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
BYD brings EV price wars to small cars in Europe

Stay informed with free updatesSimply sign up to the Electric vehicles myFT…

Fulbright board resigns as it claims political interference by Trump administration

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Harvey Weinstein found guilty on sexual assault charge in retrial

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Republican Senator Ron Johnson warns on opposition to Donald Trump tax bill

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Oil prices surge on fears of escalation in the Middle East

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

- Advertisement -
Ad imageAd image

You Might Also Like

Stocks

CPS reports solid 2023 performance, eyes future growth By Investing.com

By News Room
Stocks

Niu Technologies faces mixed results in Q4 2023 By Investing.com

By News Room
Stocks

Exagen Inc. reports strong 2023 revenue growth By Investing.com

By News Room
Stocks

Legacy Housing reports mixed results amid sales decline By Investing.com

By News Room
Stocks

Harmony Biosciences exec sells over $383k in stock By Investing.com

By News Room
Stocks

Biofrontera posts record revenue and outlines growth plans By Investing.com

By News Room
Stocks

Granite Ridge CFO buys $31,000 in company stock By Investing.com

By News Room
Stocks

Coliseum Capital Management buys MasterCraft Boat shares worth over $3.2m By Investing.com

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?