SINGAPORE, April 28 — With the latest cooling measures doubling the Additional Buyer’s Stamp Duty for foreigners, and Singaporeans and permanent residents paying a higher rate as well, property analysts said that rental prices are likely to jump.
In a joint statement, the Ministry of National Development, Ministry of Finance and Monetary Authority of Singapore pointed out that there was growing demand for property among investors here and abroad, and that the cooling measures are to “promote a sustainable property market”. This is because most housing hunters would be first-property buyers not affected by the higher ABSD — with one analyst from real estate agency PropNex Realty saying that its internal data suggests just 1.5 per cent of transactions involved foreigners.
“Some of those who intend to buy only one private home and later sell their flat may be affected . Although they do not need to pay duty, they still need to pay it upfront and later seek remission upon selling their flat. “As investment demand is likely to be altered by , there could be fewer private homes for rent in the longer term.