Refinitiv Newscasts - Singapore property tax hikes freeze out foreigners

UOL

27/04/2023 10:42

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Source: Reuters

Description: Singapore raised levies on private property purchases in a
surprise move late on Wednesday (April 26) night to cool the market, including
a doubling of stamp duties for foreigners to an eye-watering 60%. Julian
Satterthwaite reports.
Short Link: https://refini.tv/44bprDZ

Video Transcript:

Singapore has shocked property buyers, with a move to effectively freeze out
foreigners. In a surprise move late Wednesday, stamp duties for overseas
buyers were doubled to 60%. One real estate agent told Reuters the door was
now closed to foreigners. The hike in duties is one of the harshest moves to
cool the city’s property market in years. It comes after a rush of
foreigners back into Singapore in recent years, with Chinese buyers accounting
for most luxury property purchases. Now, policymakers are concerned that
overseas buyers see the city’s property as a hot asset, driving up prices
and squeezing out locals. Singapore home prices have seen strong gains over
the past two years, contrasting with falls in China and other parts of the
region. The latest moves did also raise taxes on Singaporean buyers, but only
on second and subsequent properties. Shares in major local property companies
tumbled Thursday, with City Developments and UOL both down around 5%. Some
doubt the new moves will have a lasting effect, however. Stamp duties for
foreigners were raised to 30% in December 2021, but home prices have still
gained since then