28.3 C
Monday, December 4, 2023


In a rapidly changing property market, staying informed about the latest developments is crucial. Singapore has recently witnessed significant changes in its property regulations, with the Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) undergoing revisions in 2023. As a potential property buyer or investor, it’s essential to grasp the implications of these changes to make informed decisions regarding property investments. In this article, we will delve into the details of these measures and explore alternative investment options in light of these developments.


The Rising Costs of Property Ownership

Purchasing a property in Singapore has become more financially demanding due to recent cooling measures. Lower loan-to-value ratios and higher buyer stamp duties have increased the capital outlay required for property investment. Moreover, property ownership is often considered an illiquid asset, emphasizing the need for prudence and a thorough assessment of risks and returns.

Unstoppable Property Price Trends

Despite various cooling measures, inflation, and a doubling of mortgage interest rates in the previous year, the demand for homes in Singapore remains strong. This continued demand reflects the confidence of both Singaporeans and international investors in the country’s property market.

Buyer’s Stamp Duty (BSD) Changes

One significant change introduced on February 15, 2023, is the revision of the Buyer’s Stamp Duty (BSD). Under the new regulations, the portion of the value of residential properties exceeding $1.5 million but not exceeding $3 million will be taxed at a rate of 5%, while properties exceeding $3 million will face a tax rate of 6%, up from the previous rate of 4%.

For non-residential properties, the portion of the property value exceeding $1 million but not exceeding $1.5 million will be taxed at 4%, while properties exceeding $1.5 million will incur a tax rate of 5%, previously at 3%. While the increase in BSD may not significantly affect properties below $2 million, it becomes substantial for more luxurious properties.


Recent Cooling Measures Timeline

To put these changes into context, let’s take a brief look at the recent cooling measures:

  1. September 2022: The government introduced measures to moderate housing demand for resale HDB flats and encourage responsible borrowing in light of rising interest rates. These measures included tightening the maximum loan limit for HDB loans and increasing TDSR and MSR calculations by 0.5 percentage points.
  2. December 2021: Additional cooling measures raised ABSD rates, tightened the Total Debt Servicing Ratio (TDSR) threshold, and lowered the Loan-To-Value limit (LTV) for loans.
  3. April 27, 2023: An additional round of cooling measures was announced, primarily focused on increasing the Additional Buyer’s Stamp Duty (ABSD). These revisions aimed to moderate investment demand and address the tight housing market for both owner-occupation and rental properties.

Impact on Investment Property Costs

When considering the purchase of an investment property, it’s essential to factor in the upfront costs associated with these measures. For example, for a $2.5 million property, the total upfront cost now amounts to $1,219,600, which includes BSD and ABSD. These costs can significantly affect an investor’s financial planning.

Rental Yield Considerations

If you are considering renting out an investment property, bear in mind that the current home loan rates, which are around 4%, may pose challenges for rental yields to surpass this threshold. Traditionally, rental yields in Singapore have been approximately 2.5 to 3%, unless rental rates experience a significant upward trend and remain elevated.

In conclusion, Singapore’s property market continues to evolve, with recent cooling measures impacting property ownership costs. As a potential buyer or investor, it’s crucial to adapt your strategies to these changes. Stay informed, assess your financial capabilities, and consider alternative investment avenues to make the most out of your investment decisions.


  1. What is the Buyer’s Stamp Duty (BSD)? The Buyer’s Stamp Duty (BSD) is a tax levied on property buyers in Singapore. The rate varies depending on the property’s value and type.
  2. How have recent cooling measures affected property prices? Recent cooling measures have increased the upfront costs of property ownership, particularly for high-value properties. This may impact property prices in the market.
  3. Are there alternative investment options for those deterred by rising property costs? Yes, there are alternative investment avenues such as stocks, bonds, and real estate investment trusts (REITs) that allow investors to participate in the property market without owning physical property.
  4. What is the purpose of cooling measures in Singapore’s property market? Cooling measures are implemented to regulate property demand, stabilize prices, and ensure responsible borrowing in the real estate sector.
  5. How can investors adapt to the changing property market conditions? Investors should stay informed about regulatory changes, assess their financial capacity, and explore alternative investments to diversify their portfolios.
- Advertisement -
- Advertisement -
Latest News


My fiancé (32M) got violent with me (28F) for the first time. We are supposed to be getting married...
- Advertisement -