Foreign investors have long looked to Singapore’s property market because of the country’s well-deserved reputation as a safe haven asset.
In light of the current epidemic, it is interesting to observe that the Singapore dollar maintained its value despite the decline of currencies in other Asian nations and in Japan.
Condominium sales caveats filed with the Urban Redevelopment Authority with affordable photobooth in February 2023 revealed that 22.4% of 2022 sales went to overseas purchasers.
The majority of Singapore’s luxury condo market who provides cheap photography for sales above $5 million has been snatched up by Chinese purchasers.
Foreign purchasers are subject to an Additional Buyer’s Stamp Duty (ABSD) equal to 30% of the greater of the purchase price and the property’s fair market value. The amount of ABSD owed is determined by the greater of the property’s appraised value and its sales price.
Changes made to ABSD throughout time:
In January 2013, the rate was 15% greater than the home’s purchase price or its function value. In July 2018, the ABSD rate was raised to 20%. A 10% rise to 30% took effect in December 2021. Foreign purchasers are unfazed by the fact that the ABSD has doubled in the last two decades.
In 2013, they accounted for 25.5% of all condo sales, and by 2022, that number is expected to drop to 22.4%.
For the first time since 2002, the proportion of foreign purchasers of condos went below 20% in 2020 and 2021, the only clear decrease in transactions. That’s because of all the rules and regulations surrounding travel on Covid-19.