Property Showflat | Additional Buyer's Stamp Duty (ABSD)
As of a property owner in Singapore you are probably well aware of how Additional Buyers Stamp Duty or more commonly known as ABSD works. Currently there’s a 10% rate of ABSD for foreigners when they purchase any residential property. While as for permanent residents that have purchased their 2nd property they will have to pay ABSD rate of 3% and this also apply to all Singaporeans that are planning to purchase their 3rd or subsequent property.
Now the new adjustment of rate will apply to permanent residents or PR on their 1st residential property purchase. They will have to pay the rate of 5% of ABSD. And then there’s also the additional 7% ABSD rate for Singaporeans who is planning on purchasing their 2nd residential property.
So to make it clear for Singaporean citizen they are still free from paying any ABSD rate on their first residential property purchase. But they will have to pay for 7% rate on their second purchase and a total of 10% rate for their third and subsequent property purchase. Citizen used to have no ABSD rate for their second property purchase and only have to pay 3% rate on their third and subsequent purchases.
As for permanent residents they now have to pay 5% ABSD rate on their first property purchase. And they need to pay 10% rate for their second and subsequent purchases. As for foreigners and non-individuals they now have to pay a total of 15% ABSD rate from their first and subsequent purchases.
Even with the increase in the ABSD rates there are still a lot of buyers who are willing to pay the price just to get the property that they dream of owning. There are still a good number of up and coming property development that holds a lot of promises to the residents and foreigners alike in Singapore.