Increase in Additional Buyer's Stamp Duty across the board for a sustainable property market

The recent cooling measures that was announced close to midnight yesterday regarding the adjustments to Additional Buyer's Stamp Duty (ABSD) may have aroused some concern and uncertainty in the property market. It is important to note that the impact of the ABSD on pricing has been relatively insignificant in the past rounds of cooling measures. While there may be some impact on transaction volume, Singaporeans and Permanent Residents buying their first property are not affected. Many buyers who are purchasing their second properties have already been avoiding paying ABSD through methods such as decoupling.

The group that is most affected by the recent ABSD adjustments would be trust deeds and foreign buyers, particularly those purchasing high-end properties in the prime central region. However, it is evident that foreign purchases have significantly dropped in recent years, with 90% of transactions being made by locals. It is unlikely that the transaction volume will drop drastically. It is important to remember that these measures are put in place to ensure a stable and sustainable property market for Singaporeans. Our government aims to create a healthy environment for buyers and sellers alike. Like they always say, be rest assured that the government is closely monitoring the situation and will make any necessary adjustments when required.

Lastly, it is important to remember that Singapore remains an attractive and stable location for investment, with a strong economy and political stability. I have no doubt that there will still be foreign buyers who will continue to invest in the market, despite the ABSD adjustments. In summary, while there may be some short-term impact, we believe that the property market in Singapore will remain resilient, stable and sustainable in the long run.