Guess what comes with your new house

If you thought Additional Buyer’s Stamp Duty, you got it right.

The Government announced an Additional Buyer’s Stamp Duty to be imposed on certain categories of residential property purchases. The ABSD will be imposed over and above the current Buyer’s Stamp Duty, and will apply to the purchase price or market value of the property (whichever is higher) for the following purchases: a) Foreigners and non-individuals (corporate entities) buying any residential property will pay an ABSD of 10%; b) Permanent Residents owning one and buying the second and subsequent residential property will pay an ABSD of 3%; and c) Singapore Citizens owning two and buying the third and subsequent residential property will pay an ABSD of 3%.

The ABSD takes effect on 8 December 2011. Remission of ABSD will be given for options granted on or before 7 Dec 2011 and exercised within 3 weeks (i.e. on or before 28 December 2011) or the option validity period, whichever is the earlier.

The Government said its objective is to promote a sustainable residential property market where prices move in line with economic fundamentals.

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