On the other hand, if you're a foreigner with permanent residency in Singapore, the stamp duty is only 5%. But if you then want to buy a second property, the rate jumps to 30% (up from the previous rate of 25%). Companies or trusts that buy any sort of residential property also now need to pay a stamp duty of 65% (up from 35%).
The official message is that these are "pre-emptive measures" to cool demand, which I guess is mostly aimed at mainland Chinese buyers. This is the largest group. Last year, they accounted for about 25% of foreign condo purchases in Singapore. However, the total number of homes purchased by foreigners remains pretty low at just 4.7% (2022). Though first quarter data from this year does suggest the number has increased to about 7%.
On the other hand, if you're a foreigner with permanent residency in Singapore, the stamp duty is only 5%. But if you then want to buy a second property, the rate jumps to 30% (up from the previous rate of 25%). Companies or trusts that buy any sort of residential property also now need to pay a stamp duty of 65% (up from 35%).
The official message is that these are "pre-emptive measures" to cool demand, which I guess is mostly aimed at mainland Chinese buyers. This is the largest group. Last year, they accounted for about 25% of foreign condo purchases in Singapore. However, the total number of homes purchased by foreigners remains pretty low at just 4.7% (2022). Though first quarter data from this year does suggest the number has increased to about 7%.
Even still, how many homes is this?
Based on
this information
, there were 20,909 private home sales in Singapore in 2020. So let's assume this has since increased and the number is, oh I don't know, somewhere around 25,000 homes per year. At 7%, that's 1,750 homes being sold to foreigners each year. Going forward, I don't know how many people are going to be willing to pay the 60% stamp duty, but presumably some will still do it.
If we pick a random number and assume that this higher tax wipes out 80% of the foreign demand, then that's an additional 1,400 homes for locals and only 350 homes going to foreigners each year. Maybe this is something?
this information
, there were 20,909 private home sales in Singapore in 2020. So let's assume this has since increased and the number is, oh I don't know, somewhere around 25,000 homes per year. At 7%, that's 1,750 homes being sold to foreigners each year. Going forward, I don't know how many people are going to be willing to pay the 60% stamp duty, but presumably some will still do it.
If we pick a random number and assume that this higher tax wipes out 80% of the foreign demand, then that's an additional 1,400 homes for locals and only 350 homes going to foreigners each year. Maybe this is something?
