Despite the recent Additional Buyer’s Stamp Duty (ABSD) rate hikes, private home sales in Singapore hit a 7-month high in April. According to data from the Urban Redevelopment Authority (URA), property developers sold 1,473 private residential units last month, exceeding market expectations. The surprising sales figures demonstrated the resilience of the market despite the significant increase in stamp duty costs faced by property buyers. Industry experts were surprised by the strong performance and attributed it to pent-up demand from buyers who had been waiting on the sidelines for some time. The sales boost also came after a slowdown in March due to uncertainties surrounding Covid-19 restrictions.
Despite the recent hike in Additional Buyer’s Stamp Duty (ABSD) rates by the Singapore government, new private home sales hit a 7-month high in April. The efforts of the government to cool down the hot property market and make housing prices more affordable for Singapore citizens played a part in this surge. The unsustainable surge in housing prices prompted subsequent measures such as raising Additional Buyer’s Stamp Duty rates for permanent residents and foreign buyers by 15 percentage points.
Despite the Additional Buyer’s Stamp Duty rate hikes for permanent residents and foreign buyers, the demand for private homes in Singapore remained high in April. Buyers were willing to invest in innovative designs and several new projects, fueled by their desire for homeownership and attractive pricing. The strength of the sales performance reflects confidence in the property market, driven by a positive economic outlook and low interest rates. While several factors have contributed to this trend, developers are committed to delivering long-term value and continue to offer innovative solutions that meet the changing needs of buyers.
The private home sales market in Singapore has been thriving despite the recent hikes in the Additional Buyer’s Stamp Duty (ABSD) rate. Industry experts credit the favorable market conditions and sustainable housing market for the strong sales figures. The objective of government efforts to curb speculative demand seems to have had little overall impact on genuine homebuyers, as potential buyers continue to show interest in purchasing private homes. While several factors have contributed to this positive momentum, developers are committed to delivering long-term value and continue to offer innovative solutions that meet the changing needs of buyers.