In an effort to slow its red-hot housing market, the government of Singapore introduced the fee alongside several other “cooling measures.”
“If left unchecked, prices could run ahead of economic fundamentals, and raise the risk of a destabilising correction later on,” the government said. “Borrowers would also be vulnerable to a possible rise in interest rates in the coming years.”
The new rates add between 5% and 15% in transfer taxes for non-local and vacation-home buyers. They went into effect for transactions on or after Dec. 16, 2021.
Overseas buyers are now charged a 30% stamp duty on a residential purchase, up from 20%, according to the Monetary Authority of Singapore.
Second-home buyers will also see increases. For permanent residents, the current rate is 25%, up 10% from 15%. In addition, a 30% tax is charged on third and subsequent homes, doubling the 15% rate charged before the changes took place.
Singaporian citizens who buy second homes saw stamp duty rates rise from 12% to 17%, and from 15% to 25% for homes thereafter, according to the government.
Rates for residential developers were also raised 10%, to 35% from 25%. In addition, they pay a 5% non-remittable stamp duty that was unchanged.
The additional stamp duty is just one of the official measures. Others include tightening lending and increasing the housing supply, the government said.
Article Source: Mansion Global