Are Singaporean investors coming to terms with rising property taxes?
Those planning to delay property purchase due to tax adjustments have declined to 24% in 2H23.
Rising property taxes and inflation do not seem to bother Singaporean investors as more of them proceed with their purchasing plans amidst these challenges.
Data from PropertyGuru showed that Singaporeans who plan to delay their property purchase due to tax adjustments have declined from 29% in H1 2023 to 24% in H2 2023.
Meanwhile, the pool of property seekers who will continue their purchasing plans regardless of inflation has gone up from 21% in H1 2023 to 25% in H2 2023.
Almost half of investors (47%) also intend to purchase another property without selling their current private property in 2H23.
“Among the investor class, there is an understanding that property taxes are part of the ancillary costs in residential property ownership and rising inflation is temporary,” Tan Tee Khoon, PropertyGuru's country manager for Singapore, said.
“ABSD for multiple residential property owners is viewed as a one-time transaction cost which property seekers have to weigh against the larger scheme of property ownership, rental income, and capital appreciation. Alternatively, they could consider commercial property investments which do not attract ABSD or Seller's Stamp Duty (SSD),” Tan added.