Tag Archives: Property Tax

Singapore among most expensive for foreign home buyers

The purchase costs of new-build prime homes sold to foreign buyers in Singapore were ranked second-highest in the world, according to a Knight Frank study.

The Global Development Insights Q2 2013 report compares the fees and costs of buying new prime residential properties across global residential markets. The residential purchase costs include stamp duty, legal costs, as well as transfer and agency fees. The report also looks into annual costs of ownership for such homes, including wealth taxes, council or municipal taxes and property taxes.

In the global comparative ranking, Hong Kong and Singapore emerged as two markets with the highest purchase costs due to increased property taxes, after their respective governments introduced measures to cool the housing markets.

“Hong Kong is the most expensive location to buy a home, once all the associated costs have been factored in. Non-residents can expect to pay 25 percent on top of the purchase price when buying a US$3 million (S$3.78 million) home. The bulk of this consists of stamp duty costs and a property tax levied on foreign non-permanent residents,” the report said.

In Singapore, foreign buyers pay purchase costs of 19.3 percent. They are charged 18 percent in stamp duty which is the highest globally, following a hike in January to curb price growth – 15 percent additional buyer’s stamp duty plus the standard rate of around three percent.

Other markets with the top highest purchase costs are London (7.9 percent), Sydney (7.2 percent), and Bahamas (6.5 percent).

As for annual costs, Singapore landed in 10th spot while Hong Kong was number 14. New York, Bahamas, Miami, Barbados and Moscow were found to have the top five highest annual costs globally.

“Buyers need to be mindful of the taxes and charges they face when buying a property, especially given recent interventions by governments,” said Knight Frank.

Source – PropertyGuru – 15 Jul 2013

Buying costs in SIngapore among highest in the world

The costs of buying a property in Singapore are, along with Hong Kong, among the most expensive in the world for non-residents.

New research from Knight Frank looked at the purchase costs associated with buying a new-build residential property in 15 prime property locations around the world.

Hong Kong is the most expensive location to buy a home, once all the associated costs have been factored in. Non-residents can expect to pay 25 percent on top of the purchase price when buying a new-build US$3 million home. The bulk of this consists of stamp duty costs and a property tax levied on foreign non-permanent residents.

In Singapore, buyers pay purchase costs of 19.3 percent. The city-state’s 18 percent rate of stamp duty for non-residents is the highest of all the world cities analysed in the Cost of Buying report, in which analysis compared the purchase costs for non-resident buyers purchasing a new-build property valued at US$3 million. This includes stamp duty, legal costs, transfer fees and agency fees (where these apply for the purchaser).

London and Sydney sit in third and fourth places respectively with buying costs making 7.9 percent and 7.2 percent of the total purchase price in each city respectively. Moscow, where buying costs for non-residents for a US$3 million property amount to just US$100, is the cheapest of the 15 locations surveyed.

Despite being one of the more expensive locations to buy a new-build home, London property remains popular with international investors who are attracted by the U.K.’s political stability, good communications and the city’s top schools.

The research showed that 73 percent of prime central London’s new-build homes in 2012 were bought by overseas buyers, with Singaporeans making up the largest proportion of international purchasers.

In New York there is no stamp duty, but the purchase of a US$3 million new-build condominium will incur a 1 percent mansion tax.

Buying a US$3 million home in Paris is relatively low-cost. There are registration and notary fees to be paid, but it is cheaper to buy a luxury home in the city compared to other traditional locations.

Source – PropertyGuru – 5 Jul 2013