S'POREAN BUYERS LEAD PRIME PROPERTY SALES AS FOREIGN DEMAND WANES AMID STAMP DUTY HIKE

The hike in the additional buyer's stamp duty (ABSD) for property has resulted in a steep fall in demand from foreigners, with analysts expecting the dampening effect to persist for an extended period. 

In January 2023, foreign buyers accounted for 5 per cent of non-landed private resale home transactions, before falling to 3.7 per cent in May after the ABSD for foreigners was increased from 30 per cent to 60 per cent on April 27, noted PropNex Research. 

The figure fell further to 1.2 per cent in September, and, by October, had slipped to 1.1 per cent, or nine transactions. 

PropNex head of research and content Wong Siew Ying said that of the nine transactions linked to foreigners, seven involved buyers from the United States, and one each from Switzerland and Oman. 

Ms Wong expects Singaporean and Singapore permanent resident (PR) buyers to continue to dominate resale condo sales.