Foreign buyers face the challenge of increased Additional Buyer's Stamp Duty (ABSD) when purchasing non-landed luxury homes. Since the adjustment of ABSD in April 2023, there has been a 50% decrease in the number of units purchased by foreign buyers for non-landed luxury homes, leading to a decline in market demand. The additional property tax makes non-landed luxury homes less attractive to foreign buyers, impacting market activity.
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Furthermore, Chinese buyers' preference for Singapore permanent residency is a significant factor. Reports indicate that Chinese buyers are increasingly inclined to obtain Singapore permanent residency due to the relatively lower additional buyer's stamp duty they need to pay when purchasing properties. This trend may encourage Chinese buyers to lean towards property acquisition for permanent residency, thus increasing their activity in the Singapore real estate market.
Moreover, differences in performance between landed and non-landed luxury property markets are driving market changes. Transaction volumes and sales in the landed luxury property market have declined, while transaction volumes in the non-landed luxury property market have dropped by 43.8%. This may indicate a growing demand for more manageable housing types such as semi-detached houses and townhouses. Buyers may prefer properties that are easier to manage in terms of size and quantity, reflecting changes in their consumption preferences and investment strategies.
shicheng.news
Finally, despite challenges such as negative reports of money laundering cases, there continues to be strong demand from Chinese buyers for Singaporean properties. This suggests that buyers' overall confidence in the Singapore property market remains solid, possibly benefiting from the sustained stability of the Singaporean economy and the resilience of property prices.
