The full article is published in Chinese on Lianhe Zaobao, Finance Section, Page 30, 21 July 2018.
The new round of property cooling measures, which launched as a surprise on July 5, has prompted Singaporeans, permanent residents (PRs) and foreigners to bear higher additional buyer’s stamp duty rates (ABSD).
Singaporeans and PRs buying their second or subsequent home will face a 5-percentage point increase in ABSD, from 7 per cent to 12 per cent, and 10 per cent to 15 per cent respectively, while foreigners buying any property face a 20 per cent ABSD, up from the current 15 per cent.
Analyst said that the higher ABSD may boost rental market as owners of successful collective sales may not purchase a replacement home now, but will rent one instead, especially if the homeowner is a foreigner.
However, ZACD Executive Director and Chief Investment Officer, Nicholas Mak believes that the new cooling measures will have little to no impact on the rental market. He pointed out that homebuyers are taking on a wait-and-see approach, and will continue to monitor home prices before deciding whether to purchase a replacement home.
Another analyst also believes that the positive effects of the new cooling measures on rental market are likely to be short-term. Those who rent a home temporarily will eventually purchase one.
Click here to read the full article.