Singapore has announced a new round of cooling measures to address concerns about rising property prices that may outpace economic fundamentals. The government stated that both local and foreign buyers of residential properties will now face increased additional buyers’ stamp duties. The announcement was made on Wednesday, April 26th, and the changes came into effect on the same day.
This marks the third round of cooling measures implemented by Singapore after similar moves were made in December 2021 and September of the previous year. According to the government, these earlier measures had a moderating effect on property prices. However, there were signs of renewed acceleration in property prices due to strong demand during the first three months of this year.
According to a joint statement issued by the Ministry of Finance, National Development Ministry, and Monetary Authority of Singapore, there has been a surge in demand for residential properties by local buyers seeking owner-occupation, as well as a renewed interest in the market from both local and foreign investors. However, if not controlled, the rapid rise in property prices could exceed economic fundamentals, leading to a sustained increase in prices relative to incomes.
