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Property News

New Cooling Measure: Increase in ABSD rates

April 26, 2023 by admin

On April 26, 2023, the Singapore government announced a new round of property cooling measures, which includes an increase in the Additional Buyer’s Stamp Duty (ABSD) rates. The revised ABSD rates will take effect from April 27, 2023.

Increase in ABSD Rates 2023

The following are the changes to the ABSD rates:

  • For Singaporeans buying their second residential property, the ABSD rate will be raised from 17% to 20%.
  • For Singaporeans buying their third and subsequent residential properties, the ABSD rate will be raised from 25% to 30%.
  • For Permanent Residents buying their second residential property, the ABSD rate will be raised from 25% to 30%.
  • For foreigners buying any residential property, the ABSD rate will be raised from 35% to 65%.

The government has said that the increase in ABSD rates is necessary to “promote a sustainable property market”. The government has also said that the changes are targeted at “cooling demand from investors and speculators”.

The increase in ABSD rates is likely to have a significant impact on the property market in Singapore. It is expected to reduce demand for residential properties, particularly from investors and speculators. This could lead to a slowdown in the pace of price growth in the property market.

What is ABSD?

ABSD stands for Additional Buyer’s Stamp Duty. It is a tax that is imposed on the purchase of residential property in Singapore. The purpose of ABSD is to cool the property market and to discourage speculation.

Additional Buyer’s Stamp Duty (ABSD) is a tax that is levied on top of the standard Buyer’s Stamp Duty (BSD) when buying a residential property in Singapore. It is imposed on all buyers, regardless of their nationality or residency status, except for first-time homebuyers. The amount of ABSD payable depends on the buyer’s profile and the number of properties they own.

ABSD Exemption

There are some exemptions from ABSD, such as when the property is bought for the purpose of rental or for the purpose of redevelopment. There are also some reliefs from ABSD, such as when the property is bought by a married couple or when the property is bought by a family member.

The ABSD is a significant cost that must be considered when buying a residential property in Singapore. It is important to factor in the ABSD when making an offer on a property and when calculating the total cost of ownership.

Why was ABSD Introduced?

Here are some of the reasons why the government introduced the ABSD:

  • To cool the property market and prevent prices from rising too quickly.
  • To discourage speculation and investment in the property market.
  • To make it more expensive for people to own multiple properties.
  • To encourage people to live in their properties instead of leaving them empty.

The ABSD has been effective in cooling the property market. However, it has also been criticized for being too harsh and for discouraging people from buying homes. The government has said that it is monitoring the impact of the ABSD and that it is willing to make changes if necessary.

It is important to note that the ABSD is not the only factor that will affect the property market in Singapore. Other factors, such as the state of the economy, interest rates, and government policies, will also play a role.

Who is liable for ABSD?

ABSD is payable by the buyer of the residential property. If the buyer is a company, then ABSD is payable by the company.

What are the rates of ABSD?

The rates of ABSD are as follows:

  • For Singaporean citizens and Permanent Residents who own at least one residential property, ABSD is payable at the following rates:
    • 5% if the purchase price is below S$1 million
    • 10% if the purchase price is between S$1 million and S$2 million
    • 15% if the purchase price is above S$2 million
  • For foreigners, ABSD is payable at the following rates:
    • 20% if the purchase price is below S$1 million
    • 30% if the purchase price is between S$1 million and S$2 million
    • 40% if the purchase price is above S$2 million

What are the exemptions and reliefs from ABSD?

There are a number of exemptions and reliefs from ABSD. These include:

  • Exemptions:
    • The purchase of a first residential property by a Singaporean citizen or Permanent Resident who does not own any other residential property.
    • The purchase of a residential property by a Singaporean citizen or Permanent Resident who is aged 55 years or above and who does not own any other residential property.
  • Reliefs:
    • A married couple can apply for a relief of up to S$1 million on the purchase of their first residential property.
    • A Singaporean citizen or Permanent Resident who is a first-time homebuyer can apply for a relief of S$30,000 on the purchase of their first residential property.

How do I pay ABSD?

ABSD can be paid in cash, by cheque, or by electronic funds transfer. ABSD must be paid within 14 days of the date of the sale and purchase agreement.

When is ABSD payable?

ABSD is payable on the date of the sale and purchase agreement. If the sale and purchase agreement is executed overseas, then ABSD is payable within 30 days of the date the agreement is received in Singapore.

If you are interested in property sales in Singapore, it is important to factor in the impact of the ABSD and other factors when making your decision.

BSD Calculator | ABSD Calculator

Filed Under: Property News Tagged With: absd, absd rates

New Launch Condo Tembusu Grand to Preview from S$ 2,296 PSF

March 23, 2023 by admin

Date: 23 March 2023

tembusu grand preview

CITY Developments Ltd (CDL) and MCL Land are set to launch Tembusu Grand, their latest residential project. Previews began on March 24th, with sales bookings to start on April 8th. The development, which is located in District 15 along Tanjong Katong Road, will comprise four 20-21 storey blocks and house 638 units.

Over 80% of these units will be one- to three-bedroom apartments, while the remaining units will consist of four- to five-bedroom units and two five-bedroom penthouses, measuring 2,691 sq ft each. The development sits on a land area of 210,622 sq ft, with a maximum permissible gross floor area of 589,744 sq ft, translating to about S$1,302 per sq ft per plot ratio (psf ppr).

Tembusu Grand offers over 40 recreational facilities, including four swimming pools, a yoga studio, a tennis court, a gymnasium, barbecue pavilions, a karaoke pod, and a children’s playroom. Each unit comes with a smart home system featuring a digital lock set, a smart video doorbell, as well as smart air conditioning and lighting controls.

Sherman Kwek, CDL group CEO, said that Tembusu Grand marks the company’s first launch of the year, adding that the company is “delighted to enliven the East Coast area with yet another residential jewel after Amber Park.” MCL Land’s CEO, Rob Garman, cited the project’s transport connectivity and smart-living experience and anticipates robust demand for the launch.

Tembusu Grand is about an eight-minute walk to the Tanjong Katong MRT station on the Thomson-East Coast Line, and is near malls and popular schools in the East, as well as the East Coast Park, Singapore Sports Hub, and Singapore Indoor Stadium. It is also a short drive to the Central Business District, Marina Bay Financial District, and Changi Airport via major expressways such as the ECP, PIE, and KPE.

The last major residential condominium launch in the district was the 298-unit Liv @ MB in May 2022, developed by Bukit Sembawang Estates. The 99-year leasehold project has sold more than 80% of its units at an average price of S$2,423 psf.

GuocoLand’s Meyer Mansion, another major private residential development launched in the area in September 2019, sold 21 of 200 units at an average price of S$2,747 psf at launch weekend. Amber Park, launched in May 2019 by CDL and Hong Realty, has sold more than 99% of its 592 units. The last transaction was the sale of its five-bedroom premium unit for S$5.326 million or S$2,486 psf in February 2023.

Filed Under: Property News Tagged With: new launch condo, Tembusu Grand

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