Written Answer by Ministry of National Development on ABSD (Sep 2022)

Sep 12, 2022

Mr Yip Hon Weng: To ask the Minister for National Development

1. whether the Ministry will consider creating a separate and higher tier of Additional Buyer’s Stamp Duty (ABSD) for property buyers who purchase more than a certain number of units in a single development across a period of time;
2. whether the benefits from purchasing property in bulk, such as bulk-purchase discounts, will negate or cushion the impact of previous ABSD increases; and
3. under what circumstances will the Ministry consider introducing curbs on bulk property purchases.

Answer:

            The Additional Buyer’s Stamp Duty (ABSD) is structured to moderate investment demand in residential property and is therefore differentiated based on the residency status of the buyer and the overall number of residential properties owned.

2          ABSD discourages the purchase of multiple units, as higher rates generally apply to purchases by those who already own at least one residential property. Higher rates also apply to buyers who are not Singapore Citizens. In December 2021, we raised ABSD rates across all buyer profiles, except for Singapore Citizens and Permanent Residents purchasing their first residential property.

3          Instances of property buyers who have purchased more than one unit in a single development are uncommon. Among all private residential property units transacted so far this year, units involved in such multiple-unit purchases accounted for about 1%. Units involved in multiple-unit purchases of more than two units are even lower, at about 0.2%. Hence, bulk property purchases are unlikely to have a significant impact on the property market.

4          We will monitor developments in the property market closely and adjust our policies as necessary to promote a stable and sustainable property market.