The Singapore government has "imposed an Additional Buyer's Stamp Duty (ABSD) for private property of between 3 per cent and 10 per cent for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market." Read article here.
This development is likely to hasten the weakening of private residential real estate prices which is something I expect to become really evident in 2014 or 2015. Weakness in the resale market would probably manifest itself markedly much earlier now.
Anecdotal evidence already shows that it is harder to find buyers in recent weeks. The ABSD which takes effect from tomorrow will likely cause weaker sellers to lower their asking prices.
In real estate investment just like in any investment, price is always a function of who is more enthusiastic, the seller or the buyer. Such enthusiam or the lack of it is the ......