To ensure that locals can afford housing, the Singapore government announced an increase in Buyer Stamp Duty (BSD) for high-value residential properties in the fiscal budget announced in February this year. However, this measure did not deter wealthy individuals from investing heavily in Singapore real estate.

A recent example is an Indonesian tycoon who has become a Singapore citizen, purchasing three independent luxury homes in a prime location in Singapore for over SGD 200 million, setting a record for this year's real estate sales. This has once again raised concerns from the government about the overheated property market.

In response, the Singapore government announced a sudden increase in the Additional Buyer's Stamp Duty (ABSD) late at night on April 26th, effective immediately from April 27th at 00:00. This new policy targets foreign property buyers, doubling the ABSD rate for them from the existing 30% to 60%, regardless of whether they are purchasing their first or subsequent properties. This significantly increases the cost for foreigners buying Singapore properties.

Henceforth, foreign buyers will need to pay SGD 600,000 in ABSD for purchasing a unit worth SGD 1 million in Singapore. For those purchasing high-end properties with better locations, the ABSD may even exceed tens of millions or even hundreds of millions in SGD.

In addition to targeting foreign property buyers, the government also increased the ABSD rates for citizens and permanent residents buying their second and subsequent residential properties to curb speculative activities in the market. For citizens, the ABSD for the second property increased from 17% to 20%, while for the third and subsequent properties, the rate increased from 25% to 30%. For permanent residents, the rate for the third and subsequent residential properties increased from 30% to 35%.

However, for potential homebuyers who obtained the Option To Purchase (OTP) before April 26th and did not modify the OTP after April 27th, they can still enjoy the original ABSD rates if the transaction is completed by May 17th or within the OTP's validity period.

Furthermore, individuals who have already purchased Housing & Development Board (HDB) flats or Executive Condominiums (EC) from property developers, with at least one buyer being a Singapore citizen, are not affected by this round of cooling measures.

The Singapore government's sudden announcement of these cooling measures clearly sends a signal: while citizens and permanent residents can still purchase their first property for personal use without issues, if they wish to engage in property speculation for profit, they will have to bear certain taxes. This measure aims to balance the housing market, ensure locals can afford housing, and curb speculative behavior.