That might be the way Singapore’s property market goes in future. 6.9 million by 2030? Could the number of new homes be sufficient if this new trend continues?
More home owners are taking sole ownership of a property, to free up their spouse or family members for ownership of other properties whilst avoiding the additional stamp duties payable on the second and subsequent properties. The savings could be quite substantial, considering the new measures now require Singaporeans owning a second home to pay a 7 per cent ABSD (additional buyers stamp duty) and PRs (permanent residents) to pay 10 per cent.
Even families who currently have more than one name on the property are ‘decoupling’ or transferring their share of the property only one person so the rest are able to now purchase new properties without paying the additional buyers’ stamp duty. The 3 per cent standard stamp duty rate which comes with the transfer is however still applicable. How many properties would one family essentially own then? Is it going to be a case of landlord over tenants in the very near future?
KhattarWong managing partner Gurbachan Singh considers the recent cooling measures to be the ‘most radical’ since 1973, and a sign that the Government is keen to look after Singaporeans first. However there are still loopholes to be filled in and constrains to be released. The situation that occurs upon the inheritance of a property needs to be reconsidered as being levied up to 16 per cent ABSD on a property that one has inherited or is placed the executor of could hardly be fair, especially if special circumstances apply. Mr. Singh has said that should the response from IRAS not be satisfactory, they are willing to take the rulings to court.