New Property Tax Introduced in Singapore
December 24th, 2011December 14th, 2011—Singapore—A new property tax was introduced in Singapore last week to ensure real estate prices do not spiral out of control. Singapore’s property prices have been rising every quarter and there is a real fear that properties in the country would go well beyond the reach of most Singapore residents. According to the new tax introduced, companies purchasing real estate as well as foreigners in the country would have to pay an additional stamp duty of 10 per cent. Those that have Singapore permanent resident status and Singapore citizens purchasing three or more properties would have to pay an additional stamp duty of 3 per cent.
According to GuideMeSingapore.com (www.guidemesingapore.com), effects of the new property taxes introduced in Singapore would be seen within a quarter or so and is likely to affect foreigners trying to invest in the real estate market in the country. Currently Singapore is one of the hottest destinations for foreign investments and many foreign business owners not only prefer setting up a company but also purchase prime properties in Singapore. Since property prices have been rising steadily, investing in real estate has always been considered as a safe option. With an additional stamp duty of 10 per cent which most consider as quite steep, many foreign investors would be deterred from buying property in Singapore in the coming year. With possible demand slowing down, property prices should come down in the future although it is unlikely that there will be a considerable fall in prices. Some feel the new measures will only help in keeping the prices steady and not go up further.
As per GuideMeSingapore.com, real estate in Singapore will remain a good option for long-term investors. However, those looking to turnaround properties and make a quick profit would definitely have to rethink their strategy. There will also be less speculative buying and the market will see long-term investors and actual home users buying more.
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