Singapore is raising property taxes in a bid to cool its red-hot housing market, amid mounting concern that an influx of wealth into the city-state is hurting affordability for locals and its competitiveness as a financial hub.
The government is increasing stamp duties for second-home buyers and foreigners purchasing private property, it said in a statement. For foreigners buying any home, the tax rate doubled to 60% from 30%. Shares of Singapore developers fell.
The measures follow tax increases that were imposed in December 2021 and a tightening of home-loan limits in September 2022. While those moves had a “moderating effect,” property prices last quarter showed “renewed signs of acceleration amid resilient demand,” the statement said.
The hike on foreign buyers is “draconian” even though the moves were not totally a surprise, Citigroup Inc. analyst Brandon Lee wrote in a note. “We expect a knee-jerk negative impact on shares of residential developers.”
Source- Hindustan Times.