New Buyer Stamp Duty

[Only Up]

Its about time, given the level of foreign speculation in the Singapore property market. 

[for the rich]

It would have been better to apply the new rules for properties below SGD 1.5 Mio where foreign buyers may drive up prices in competition with Singaporean upgraders.

Its a benefit for small countries like Singapore to attract rich people. The rich won't moan about paying an additional 10% in price but about having to pay more because they are foreigners.

Somehow this is not in line with beeing an investment friendly and easy to do business country.

I usually agree with most of the governments policies but I think this time they went too far.

I would not wonder if it will be revised as quickly as it appeared.

[ways around]

I believe this move was politically motivated.  Something to appease the masses.  Otherwise the tax makes no sense.  There are certainly ways around investing in a second property and not paying that extra stamp duty.

[to pp]

for Singaporeans and PR there will be ways around but I doubt so for foreigners - interesting that FTA partners like US, Switzerland, Norway, Lichtenstein and Iceland are treated like Singaporeans.

[Robin Hood]

The rich won't moan about paying an additional 10% in price but about having to pay more because they are foreigners.

Somehow this is not in line with beeing an investment friendly and easy to do business country.

Any investor, whether property or in setting up a business likes stability and transparancy and by suddenly changing such rules to the detriment of foreigners will make some nervous of the possible manipulation that can hamper investment returns.

Changing EP and Dependant's Pass fees, for example, from $30/yr to $120/issue was the starting point for showing protectionist policies.

Now that SG has officially overtaken HK in expense, the timing of this additional stamp duty is a smack in the face to FDI.

[I don't think]

It would have been better to apply the new rules for properties below SGD 1.5 Mio where foreign buyers may drive up prices in competition with Singaporean upgraders.

Its a benefit for small countries like Singapore to attract rich people. The rich won't moan about paying an additional 10% in price but about having to pay more because they are foreigners.

Somehow this is not in line with beeing an investment friendly and easy to do business country.

I usually agree with most of the governments policies but I think this time they went too far.

I would not wonder if it will be revised as quickly as it appeared.

You understood the psyche behind this... There is nothing called investment when you talk about speculation... this is to curb speculative buying. period.

[Greenspan]

It would have been better to apply the new rules for properties below SGD 1.5 Mio where foreign buyers may drive up prices in competition with Singaporean upgraders.

Its a benefit for small countries like Singapore to attract rich people. The rich won't moan about paying an additional 10% in price but about having to pay more because they are foreigners.

Somehow this is not in line with beeing an investment friendly and easy to do business country.

I usually agree with most of the governments policies but I think this time they went too far.

I would not wonder if it will be revised as quickly as it appeared.

let's not blindly follow the western laissare fairre bs.. they certainly don't.  Government need to grow a pair and do the right thing

[anon]

The developers, fattened by 8 years of gouging Singaporean homeowners and depleting their savings, are now offering to rebate the Additional Buyers' Stamp Duty in full to buyers, both local and foreign. Ie if the buyer is foreign, they will rebate 10% and if the buyer is local they will rebate 3%. The irony is that that creates a bigger subsidy now for foreigners vs locals!

[anon]

Obviously the developers must be damned loaded to be offering rebates like these, so their warnings about the world coming to an end seem a bit fake.
So nothing seem to have changed - prices doesn't look like it will be affordable soon, foreigners and locals are still paying the same for properties, and the exercise is just a transfer of wealth from the developers back to the government.

I wish the policymakers thought about things a bit more first - they should just allow foreigners to sell to locals only.

[slow response]

Keep in mind too that this time of the year  that activity in the property market will usually start to pick up again now that the expat holidays are done.

Agents and buyers alike are all sitting on the fence waiting to see how it goes in Q1 so dont be surprised if there is a drop in activity down on last year. 

Its no great secret that a correction is possibly on the cards but dont expect prices to drop overnight.

It takes time before the market feels the effects and most sellers are going to hold on to their prices in denial until they accept that the market has moved.