Higher ABSD rates, tighter loan limits: What this means for Singapore’s homebuyers

By EdgeProp Singapore / EdgeProp | July 6, 2018 5:32 PM SGT
The government has acted to cool the red hot residential property market. Additional Buyer’s Stamp Duty (ABSD) rates have been raised for some categories of residential property purchases, and the Loan-to-Value (LTV) limits on residential property purchases have been lowered, all with effect from 6 July 2018.
Higher ABSD rates
Below is a table showing the latest ABSD rates in comparison with the previous rates:
Source: IRAS
ABSD is an additional stamp duty on top of the prevailing Buyer’s Stamp Duty for residential properties. Below are the prevailing rates of Buyer’s Stamp Duty from 20 February 2018:
Source: IRAS
With the revised rates, here’s how much more homebuyers would be paying before and after the new cooling measures.
1) Singapore Citizens (SCs) buying a second residential property
If you’ve been eyeing a three-bedroom unit at Park Place Residences at PLQ, which is priced roughly at $2 million, here’s how much you would be paying before and after the new ABSD rates:
This translates to an increase of $100,000 in stamp duties payable if you were to purchase a unit priced at $2 million.
2) Singapore Permanent Residents (PRs) buying a second residential property
Looking to buy a property in the...