In the third round of cooling measures since December 2021, Singapore announced the steepest rise in stamp duty for foreign buyers just before mid-night on 26 April 2023. Minister for National Development, Mr Desmond Lee said that these are pre-emptive measures to dampen demand for residential properties so that Singaporeans who are buying their property to stay will be prioritised.
A table summarising the changes which took effect on 27 April 2023 is below:
| Additional Buyer’s Stamp Duty | Rates from 16 December 2021 to 26 April 2023 | Rates on or after 27 April 2023 | |
| Singapore Citizens | First residential property | 0% | 0% (No change) |
| Second residential property | 17% | 20% (Revised) | |
| Third and subsequent residential property | 25% | 30% (Revised) | |
| Permanent Residents | First residential property | 5% | 5% (No change) |
| Second residential property | 25% | 30% (Revised) | |
| Third and subsequent residential property | 30% | 35% (Revised) | |
| Foreigners | Any residential property | 30% | 60% (Revised) |
| Entities | Any residential property | 35% | 65% (Revised) |
| Trustees | Any residential property | 35% (wef 9 May 2022) | 65% (Revised) |
| Housing Developers | Any residential property | 35% (remittable, subject to conditions) + 5% (non-remittable) | 35% (remittable, subject to conditions) + 5% (non-remittable) (No change) |
There will be a transitional remission where ABSD rates before 27 April 2023 will apply for cases that meet all of the following conditions:
- The option to purchase (OTP) was granted by sellers to potential buyers on or before 26 Apr 2023; and
- The OTP is exercised on or before 17 May 2023, or within the OTP validity period, whichever is earlier; and
- The OTP is not varied (including any extension of the validity period) on or after 27 April 2023.
However, citizens of the USA, Switzerland, Liechtenstein, Norway, and Iceland will be treated the same as Singapore Citizens because of Singapore’s commitments under the respective Free Trade agreements.
In the first quarter of 2023, foreign purchases of residential property made up only about 7 per cent of all transactions, mostly in the high-end market. It is therefore likely that the high-end market that will be most affected by these latest cooling measures.
Analysts are unsure how the cooling measures will affect the broader residential market in Singapore. Of immediate impact is the stock prices of listed property developers with a large stockpile of residential properties, and companies with dealings in the residential property market like housing agents.