The additional buyer’s stamp duty (ABSD) has effectively reduced the number of non-permanent resident foreigners buying private homes in Singapore, thereby increasing the share of Singaporean and PR buyers, The Business Times reported.
Of the 23,312 caveats lodged for private homes (excluding ECs) in the first three quarters of 2012, non-PR foreigners accounted for only 6.2 percent, according to analysis by Knight Frank. This is a significant decline from the group’s 17.5 percent full-year share in 2011 and 11.9 percent in 2010.
During the nine-month period, PRs took up 15.6 percent of private home purchases, up from 13.4 percent in 2011. Notably, PRs fork out three percent ABSD for their second and subsequent home purchases.
In comparison, non-PR foreigners pay 10 percent ABSD on all residential property purchases.
Singapore citizens accounted for 77.4 percent of private home purchases from January to September, up from 66.8 and 72.1 percent in 2011 and 2010 respectively. This group of buyers pay three percent ABSD, but only on third and subsequent homes.
Meanwhile, companies took up 0.8 percent of private home transactions, down from 2.3 percent last year, noted Knight Frank.
“The ABSD is doing its job,” said Ku Swee Yong, CEO of International Property Advisor. He added that the decline in foreign buying may have also been attributed to some developers holding back the launches of luxury residential projects, in view of the ABSD.
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