Singapore Home Sales Surge To Decade High
Developers sold 2,557 new private units in November 2024, according to figures released by the Urban Redevelopment Authority Monday. That’s more than the previous six months combined, and the most for a single month since March 2013.
The resurgence was driven by multiple mass-market projects launched in the same month, as developers sought to capitalize on declining borrowing costs and pent-up demand. Buyers responded by lapping up suburban projects, including one in the east, Emerald of Katong, that sold more than 99% of its available 846 units.
The boom is renewing speculation for further housing curbs, as the government seeks to allay voter concerns about housing affordability ahead of elections due in less than a year. Singapore has introduced multiple rounds of measures in recent years to tame property prices, including a 2023 hike in stamp duty for most foreigners.
Singapore’s government has sought to increase land available for private homes. It will offer sites for about 8,505 private homes in the first half of 2025 for sale, up from 8,140 units in the second half of this year.
Introduce ABSD for first time home owners?
When ABSD was last raised in April 2023, Singapore citizens and permanent residents (SPRs) buying their first home were unaffected. ABSD does not apply to citizens buying their first home, while SPRs buying their first home pay 5 per cent ABSD.
Perhaps a potential new round of ABSD revision will hit locals and SPRs who are buying their first homes, with say rates of 5 per cent and 10 per cent, respectively. And these rates could apply to homes that sell for more than $1 million each.
As it stands, a local couple can buy two homes today without incurring ABSD provided the homes are owned under separate names. This means a couple can live in one home and use the other unit for rental income.
Currently, subject to various conditions, the effective ABSD for the purchase of a home by a Singapore citizen who is under 21 via a trust can be zero. Where remission of ABSD (Trust) has been granted, part or all of the ABSD (Trust) of 65 per cent paid upfront will be refunded. The amount refunded is based on the difference between what the ABSD (Trust) paid and the ABSD payable, based on the highest profile of the beneficial owners in the residential property in the transaction.
Ultimately, should the private housing market heat up further, do not rule out the government rolling out more property cooling measures.
(Source: Yahoo and The Business Times)