And additional 10% stamp duty for foreigner buying Singapore property. And 2nd time for PR (Permenant Resident) / 3rd time for Singaporean (Citizen) home owner pays 3% on top of current stamp duty. The current stamp duty are calculated as follows: 1% on first SGD180,000 of the purchase price, 2% on the next SGD180,000 and 3% for the remainder. According to stats, nearly a third of property buyers are non-citizen. Property prices are now 13% above the 1996 peak. And about 20% of the buyers are owners of more than 2 properties. Some property analyst predict that it will cause up to a 30% correction but not a crash. It has become a question not of if the market will fall in 2012, but by how much.
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Singapore property prices, which have soared to record highs this year. The Singapore Government spokeman said the government is seeking to cool demand now to avoid a major price crash in the forecoming future. The new taxes are implement to discriminate according to the residency status of the buyer. Foreigners, who account for more than a quarter of the city-state’s 5.2 million population. Singapore property prices have risen for nine straight quarters. They are 13 percent above the previous peak in 1996 and 70 percent higher than in 2006. So all the accumulated effects of all the cooling measures that the government has announced in the last two years will accelerate the rate of price decline.
The “Dec 8 measures” dubbed by some experts is the harshest out of the five policy moves since September 2009. And Singapore Property Agents said the curbs could also lead to a fall in home values, while possibly damaging the already fragile economy and dampening foreign investment.