The Singapore government recently introduced a fresh round of cooling measures on 27 April 2023 aimed to deter foreign investment given the spate of luxury property purchases by foreign buyers in the past year. The most significant measure made was the revision of Additional Buyer’s Stamp Duty (ABSD) rate for foreign buyers from 30% to 60% – the largest increment so far. Before this, the last time we saw a revision of ABSD rates was in the cooling measures introduced on 15 December 2021, where ABSD rate for foreign buyers was increased from 20% to 30%.
In this article, we will explore whether this latest ABSD revision will be effective in deterring foreign buyers from investing in Singapore real estate, taking a look at property cooling measures around the world. Read on as we dive into what and where foreign investors are buying in Singapore in the past two years, and whether this trend will continue in spite of the cooling measures.