Residential

A need for clearer ABSD guidelines

The Additional Buyer’s Stamp Duty (ABSD) is the latest governmental measure aimed at cooling the residential market. The ABSD is imposed on foreigners and companies buying any residential property (including residential land), permanent residents buying their second and subsequent property and Singapore citizens buying their third and subsequent property at 10%, 3% and 3% of the purchase price or market value, whichever is higher, respectively. This measure to restrict investment purchase of residential properties is in addition to the extension of the Seller’s Stamp Duty (SSD) on residential properties acquired on or after Jan 14, 2011 and sold within four years of acquisition, with the duty being 16%, 12%, 8% and 4%respectively for properties sold in the first, second, third and fourth year after acquisition.

The ABSD and SSD have different impacts on licensed and non-licensed developers. Licensed developers need not pay an ...