SINGAPORE Trends and Developments Contributed by: Monica Yip and Dorothy Marie Ng, WongPartnership LLP
WongPartnership LLP 12 Marina Boulevard Level 28 Marina Bay Financial Centre Tower 3 Singapore 018982 Tel: +65 6416 8000 Fax: +65 6532 5711/5722 Email: contactus@wongpartnership.com Web: www.wongpartnership.com
Real Estate in Singapore: an Introduction The introduction of higher rates of stamp duties payable by buyers for residential properties in the second quarter of 2023 curbed the jump in residential property prices in the first quarter of 2023. The rates of buyer’s stamp duties were raised, with rates for residential properties rising up to 6% and rates for non-residential proper - ties rising up to 5% of purchase consideration or market value. The rates of additional buyer’s stamp duties pay - able by buyers of residential properties on top of the existing buyer’s stamp duties were also increased. For Singapore citizens buying their second residential property, the rate of addi - tional buyer’s stamp duty was raised from 17% to 20% of the purchase price or market value; for those purchasing their third and subsequent property, the rate increased from 25% to 30%. Entities and trusts buying residential property are now required to pay additional buyer’s stamp duty at a rate of 65%, up from the previous rate of 35%. The greatest increase is for foreigners buying residential property, for whom additional buyer’s stamp duty increased from 30% to 60%.
These increases in stamp duty rates were insti - tuted to cool the continued rise and to discour - age speculation in the residential market. Fol - lowing the increase in buyer’s stamp duty and additional buyer’s stamp duty, the percentage of foreigners buying residential property has decreased. New private residential sales also dipped to a 15-year low. Integrated mixed-use developments and pro - jects located near amenities continued to gar - ner interest. Public housing also saw a new framework, which classified public flats by loca - tion (eg, near city or town centres or transport nodes). New policies that will provide for more subsidies in public housing but with stricter sale conditions were introduced. Landed residen - tial property prices, particularly in good class bungalow areas, continued to show a strong increase, given the scarcity of landed housing in Singapore. Despite concerns about rising interest rates and uncertainty in macroeconomics, the commercial real estate sector was relatively buoyant in 2023, supported by several large-scale transactions, including the following:
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