From April 27, the additional Buyer's Stamp Duty (ABSD) for residential property purchases was increased by three percentage points to 30 percentage points. The ABSD adjustment for foreign buyers is the largest, rising uniformly from 30 per cent to 60 per cent.

In the case of a private home worth 2 million yuan, this means the ABSD for foreign buyers will jump from 600,000 yuan to 1.2 million yuan.

The ABSD for Singapore permanent residents buying second and third properties has been increased from 25 per cent to 30 per cent and 35 per cent respectively. Permanent residents who buy their first property continue to pay the 5 per cent ABSD.

For Singapore citizens buying second and third properties, the ABSD has been increased from 17 per cent and 25 per cent to 20 per cent and 30 per cent respectively. Singapore citizens buying their first property will continue to be exempt from the ABSD.

In addition, the ABSD for non-individual buyers, such as corporations and trusts, has been increased from 35 per cent to 65 per cent. However, the ABSD to be paid by property developers remains at 40 per cent, comprising 35 per cent of the stamp duty refundable to developers subject to the stamp duty requirements and a non-refundable 5 per cent.

In a joint statement issued late Wednesday night, the Ministries of National Development, Finance and Monetary Authority said the ABSD will be further increased to pre-regulate investment demand in order to promote a sustainable property market and give priority to owner-occupied demand.

Based on last year's data, the ABSD adjustments will affect about 10 per cent of residential property transactions.

The notice said the government's real estate measures in December 2021 and September 2022 have had a moderating effect. In the first quarter of this year, however, prices again showed signs of accelerating amid resilient demand.

"Local demand for owner-occupied housing is particularly strong, coupled with renewed interest in Singapore's residential property market from both local and foreign investors," it said. If left unchecked, house prices could overshoot economic fundamentals, creating a risk of sustained price growth relative to incomes."

According to the latest estimates released by the Urban Redevelopment Authority on April 3, the overall private home prices rose for the 12th consecutive quarter. The overall private home price index rose 3.2 percent quarter-on-quarter in the first quarter of this year, higher than the 0.4 percent increase in the fourth quarter of last year.

The notice noted that the higher ABSD would complement the government's plan to increase housing supply, easing pressure on the housing and rental markets.

The number of private housing units in selected sites under the Government Land Sale Programme (GLS) increased from 3,500 in the second half of last year to 4,100 in the first half of this year. The government launched 6,300 units last year.

For HDB, more than 23,000 units were launched last year and up to 23,000 units will be launched this year. The authorities plan to launch a total of 100,000 new units between 2021 and 2025. The statement said the government would maintain a stable supply to meet the growing demand for housing.

Three government agencies noted that HDB and private housing projects are making good progress despite significant delays due to COVID-19. From this year to 2025, close to 100,000 HDB and private flats are expected to be completed, of which close to 40,000 will be completed this year.

The statement stressed that the above measures are aimed at easing housing demand, giving priority to the housing needs of homeowners and providing adequate housing supply. "The Government will continue to make adjustments where necessary to ensure that our policies remain relevant to promote a sustainable property market."