Higher BSD rates did not deter luxury homebuyers: analysts

The increase is unlikely to hit foreigners and luxury homebuyers.

The government raised buyer’s stamp duty for properties worth $1.5m and above in the recent budget but this did not hamper the spending of luxury homebuyers and foreigners, property analysts said.

Huttons cited examples such as in Terra Hill along Yew Siang Road was rolled out after the budget announcement but it still sold at 97 units.

“Buyers are viewing the marginal increase in BSD as a wealth and it is not deterring them from buying a residential property,” said Huttons Asia in its comments on the developers’ sales.

This also happened in 2018 where demand for luxury homes still increased despite higher BSD increase.

Echoing this, OrangeTee said the “increase is likely to have more impact on the primary market, where the price quantum is higher compared to the resale market.”

Government data showed that 94.7% of new homes, excluding ECs, were sold for at least $1.5m in February 2023.

“However, most buyers may not feel that the increase in BSD is excessive, especially if the amount is expressed as a percentage of the total purchase price and if the homes were bought for owner occupation or a long-term investment,” said OrangeTee.