New private home sales in Singapore reached a 7-month high in April, defying expectations in the face of recent Additional Buyer’s Stamp Duty (ABSD) rate hikes. Despite the increased costs for property buyers, the market demonstrated resilience and maintained its upward trajectory.
According to data from the Urban Redevelopment Authority (URA), developers sold 1,473 private residential units in April 2023. This marked a significant increase of 29.7% compared to March’s sales figures, surprising industry experts who had predicted a slowdown due to the Additional Buyer’s Stamp Duty rate hikes implemented earlier this year.
The Additional Buyer’s Stamp Duty rate hikes were introduced by the Singapore government as part of its efforts to cool down the red-hot property market and prevent an unsustainable surge in housing prices. Under the new measures, the Additional Buyer’s Stamp Duty rates for Singapore citizens buying their second and subsequent properties were increased by 5 percentage points, while rates for permanent residents and foreign buyers went up by 10 and 15 percentage points, respectively.
Despite these measures, demand for private homes remained robust, driven by factors such as low interest rates, positive economic outlook, and the desire for homeownership. Additionally, developers launched several new projects, attracting buyers with attractive pricing and innovative designs.
The strong sales performance in April indicates that the demand for private homes in Singapore remains resilient. It also highlights the underlying strength of the country’s property market and the confidence of buyers in the long-term value of real estate.
Industry experts believe that while the Additional Buyer’s Stamp Duty rate hikes may have initially deterred some potential buyers, the overall impact on the market was limited. The measures were primarily targeted at curbing speculative demand rather than dampening genuine homebuyers’ interest. The strong sales figures indicate that the measures have achieved their objective without significantly stifling the market.
Looking ahead, the private home sales market is expected to maintain its positive momentum, supported by favorable market conditions and continued government efforts to ensure a stable and sustainable housing market. As Singapore’s economy recovers and investor sentiment improves, the real estate sector is likely to remain an attractive investment option for both local and foreign buyers alike.
New private home sales hit 7-month high in April despite ABSD rate hikes