Singapore - Additional buyer's stamp duty for private property from Dec 8

Extracted information from http://www.channelnewsasia.com

SINGAPORE: The government has imposed an Additional Buyer's Stamp Duty (ABSD) for private property of between 3 per cent and 10 per cent for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market.

The changes take effect on December 8.

• Foreigners will pay 10 per cent Additional Buyer's Stamp Duty (ABSD) for any residential property.
• Permanent Residents owning one and buying second and subsequent properties will pay 3 per cent ABSD.
• Singaporeans owning two and buying a third and subsequent residential properties will pay 3 per cent Additional Buyer's Stamp Duty.

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How does this affect you, Mr./ Ms. Investor?

Let say, you are getting a property priced SGD$1.3m, with existing rule (as of today, 7 Dec 2011), you are supposed to pay 3%-$5400 of stamp duty, i.e. $1,300,000 X 3% - $5,400 = $33,600; with new ruling, it became $163,600. Total $130,000 difference! *gulp*

I supposed one very good thing is, investors that just bought Foresta, Miltonia, Vacanza @ East, The Trizon & My Manhattan, especially My Manhattan which was launched just 2 days ago in Kuala Lumpur might be safe from being affected by this new rule.

FYI, Singapore imposed 4 rounds of property curbs in year 2010 and 2 rounds of property curbs in 5 months for year 2011 itself, yet failed to curb the property buying frenzy, then now they have got this.

We all shall see how things goes.