ABSD brings in S$110m

April 16th, 2012 at 1:12 am

A total of S$110 million was collected between 8 December 2011, when the government first started to collect ABSD (additional buyer’s stamp duty), to 31 March this year. Of the total sum, S$66.2 million were accounted for by foreigners who acquired 369 private homes in a span of about four months.

These residential properties are “roughly equivalent to a single month’s transactions by foreign buyers before ABSD,” noted Ong Teck Hui, Executive Director at Credo Real Estate.

He added that “the ABSD has probably achieved its intended effect of curbing foreign buying.” Under the ABSD, foreigners as well as non-individuals (like corporate entities) are required to pay an additional 10 percent tax when buying any residential property.

According to the Inland Revenue Authority of Singapore (IRAS), 73 percent of the 1,478 transactions that involved ABSD were by Singaporeans and PRs (permanent residents).

But 65 percent of the ABSD in dollar terms were levied from foreigners and non-individuals.

“This is due to the higher applicable ABSD rate for foreigners and non-individuals at 10 percent, as compared to the applicable ABSD rate of 3 percent for Singapore citizens on their third and subsequent residential property purchase and on PRs for their second and subsequent residential property purchase,” IRAS noted.

Foreign purchases of private homes fell to just 56, 137 and 78 in January, February and March this year, compared to 436, 391 and 530 in October, November and December 2011, based on analysis of caveats by R’ST Research.

At the same time, foreign buyers’ share in transactions fell to seven percent in January and February, and four percent in March, from 20 percent, 17 percent and 23 percent in October, November and December last year.

 

Source: Property Guru