Additional Buyer Stamp Duties (ABSD)

Less hit by cooling measures, DBS deserves a premium

SINGAPORE (July 12): OCBC Research expects transaction volumes for mortgage loans to come off after Singapore unexpectedly announced more property cooling measures last week.

OCBC says the property cooling measures are reminiscent of those introduced in Jan 2013, which led to a 4.5-year decline in residential property prices in Singapore. This round, there is an increase in additional buyer’s stamp duty (ABSD) and the loan-to-value ratio was brought down by 5% across the board.

Sales momentum to turn cold; en-bloc activity to wane as developers rethink strategies

SINGAPORE (July 6): After warning of “market exuberance” in the property market for the past six months, the Singapore government has finally raised Additional Buyer’s Stamp Duty (ABSD) rates by 5 ppts and tightened Loan-to-Value (LTV) limits by 5 ppts.

In terms of demand, sales momentum is expected to turn cold. According to a Friday report by DBS Group Research, the combined impact of these measures raises the cost of ownership on an assumed $1.5 million property purchase by $75,000 for first-time buyer and $150,000 for investor.

Budget 2018 negative for developers, positive for REITs: Morgan Stanley

SINGAPORE (Feb 21): Morgan Stanley says the increase in Buyer's Stamp Duties (BSD) announced in Budget 2018 is not enough to derail Singapore's ongoing home price recovery although this could weigh on sentiment on Singapore developer stocks in the near term.

The marginal BSD rate was increased from 3% to 4% for the portion of property values above $1 million, effective from Tuesday.

More bark than bite but easing of measures a major sentiment booster

SINGAPORE (March 14): The Singapore Government surprised the market with a modest easing of the existing property market measures.

This involved calibrated adjustments to the Seller's Stamp Duty (SSD) and Total Debt Servicing Ratio (TDSR) framework.

The core elements of the property market measures aimed at financial prudence like Additional Buyer Stamp Duties (ABSD) and Loan to Value (LTV) limits, however, remained unchanged.

Be informed of the stories that matter