Tag Archives: Stamp Duty

Weak demand for resale property to continue

Posted on 22 May 2013 | Comments Off on Weak demand for resale property to continue

Singapore saw a sharp decline in residential resale volumes across all segments in the first quarter of 2013, according to a DTZ report.

The quarterly and year-on-year drop is a “stark contrast” to 2012, when resale deals rebounded following the introduction of the additional buyer’s stamp duty (ABSD).

“The recovery in resale volume last year was due to buyers finding better value in the resale market after some projects in the primary market set benchmark prices. In comparison, developers were more competitive in their pricing strategies this year and the latest round of cooling measures in January 2013 were more comprehensive than that in December 2011. The mismatch in the expectations between buyers and sellers could also have contributed to the weak resale volume,” said DTZ.

In terms of buyer profiles, foreigners accounted for 9.9 percent of all transactions in Q1 this year, up from an average of 6.4 percent in 2012.

However, demand from local buyers fell as they are now required to pay ABSD for their second and subsequent properties.

“Buying behaviour varied among non-Singaporean groups in the resale market. Firstly, purchases by USA nationals remained resilient, especially so in the high-end segment, as they are not subject to the 15 percent ABSD for foreigners. Transactions by Indonesian buyers in the high-end segment however fell. In comparison, demand from mainland Chinese buyers held up well across most price segments, except for those costing below S$1 million.”

Moving forward, DTZ expects the resale market to underperform as there are no discounts being offered unlike in the primary market. Buyer activity is also expected to be lower due to higher stamp duties, weaker rental growth and stricter financing regulations.

Source – PropGuru – 22 May 2013

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Posted in Cooling Measures, Property Market / Real Estate

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Taxman collects $1.03 billion in ABSD

Posted on 6 May 2013 | Comments Off on Taxman collects $1.03 billion in ABSD

Singapore recorded a significant hike in tax revenue due to the additional buyer’s stamp duty (ABSD) introduced in January, reported The Straits Times.

The Inland Revenue Authority of Singapore (IRAS) stated that the government collected around S$158 million in ABSD from February to March. A total of S$1.03 billion has so far been collected since December 2011 when the measure was first implemented until March this year.

Foreigners accounted for most at S$580 million for 3,041 homes, while Singaporeans and permanent residents (PRs) paid S$386 million for 7,269 units. On the other hand, non-individuals contributed S$66 million for 285 units, reported IRAS.

Meanwhile, S$66.6 million has been collected in seller’s stamp duties (SSD) since it was introduced in 2010.

Experts noted that despite the property taxes, buying activity remains healthy as developers continue to offer discounts and incentives.

In fact, about 30 to 40 percent of buyers at new launches are purchasing their second, third or subsequent homes, said Alan Cheong, Research Head at Savills Singapore.

“They are creating reasons to buy. It could be for rental income when the population grows to over six million, capital gains or to hedge against the possibility of their children not being able to afford homes in the future,” he said.

Source : PropGuru 6 May 2013

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Posted in Cooling Measures, Government, Property Market / Real Estate, Tax Matters / Property Tax

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