SINGAPORE (EDGEPROP) - The government is levying higher ABSD rates, in a bid to cool the property market that remains firm even with a dimmer economic outlook.

With effect from April 27, Singapore citizens have to pay a 20% ABSD, or additional buyers' stamp duty, on their second residential property. They now pay 17%.

Citizens have to pay 30% on their third and subsequent property, up from 25% now. A similar rate applies for Singapore PRs buying their second residential property.

The government is also raising the ABSD rate from 30% to 35% for Singapore PRs purchasing their 3rd and subsequent residential property.

The ABSD for foreigners buying any residential property will be doubled from 30% to 60%.

The ABSD for entities or trusts buying any residential property, except for developers, will be raised from 35% to 65%.

(Source: MOF, MND, MAS)

The implementation of the property market measures in December 2021 and September 2022 have had a moderating effect, says the Ministry of Finance, Ministry of National Development, and the Monetary Authority of Singapore in a joint statement late in the evening of April 26.

However, in 1Q2023, property prices showed renewed signs of acceleration amid resilient demand. Demand from locals purchasing homes for owner-occupation has been especially strong, and there has also been renewed interest from local and foreign investors in our residential property market.

"If left unchecked, prices could run ahead of economic fundamentals, with the risk of a sustained increase in prices relative to incomes," the government says.

This article first appeared on The Edge Singapore.