Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home>>Daily News>>Singapore>>Property>>Property stocks decline following higher buyer's stamp duty

NEWS UPDATES Asean Affairs   February 22, 2018  













Property stocks decline following higher buyer's stamp duty

 Property-related stocks saw a decline on Tuesday (Feb 20), a day after the Government announced in the Budget speech that the Buyer’s Stamp Duty (BSD) would be raised.

UOL Group fell by 3.25 per cent and City Developments by 3.02 per cent at market close, while CapitaLand declined by 1.93 per cent and Bukit Sembawang by 1.78 per cent. The developers were some of the biggest decliners on the benchmark Straits Times Index, with City Developments taking the lead.

But analysts Channel NewsAsia spoke to said the tax hike will have a limited impact on the mass property market, which remains buoyant in the long term.

Terence Wong, CEO of Azure Capital, called the dip in share prices a knee-jerk reaction: "People would want to see how things pan out. But if they were to sit back and think about it, there’s still going to be a lot of liquidity in the market. The impact of it, particularly for the mass market where most of the homes volume are being pushed up, that will be very minimal."

On the other hand, Mr Wong said that the BSD increase would be most clearly felt in luxury and high-end projects.

Ku Swee Yong, CEO of International Property Advisor agreed: “If there are buyers, especially foreign buyers, who are in the market for a S$5 million property, this additional 1 per cent is quite a bit.

"Added to the Additional Buyer’s Stamp Duty of 15 per cent, they would see a 19 per cent stamp duty on S$5 million. That might also cause a deterrent to them."

Developers buying en bloc properties would also be impacted by the revised tax rates, said Mr Ku. "Especially with the mega en blocs that are worth over a billion dollars, this 1 per cent may count for a little bit more because at S$1 billion, the 1 per cent is S$10 million in costs."

The dip in share prices comes a day after Finance Minister Heng Swee Keat’s Budget speech, where he announced that the top marginal BSD rate would be raised from 3 to 4 per cent for residential properties.

The new rate applies to all residential properties acquired from Feb 20, for properties worth more than S$1 million. Previously, the duty rates ranged between 1 and 3 per cent, and were last revised in 1996.

Mr Ku said the increased rate might also have the unintended effect of encouraging developers to build more shoebox units selling at under a million dollars.  

"We already have a sufficient number of shoebox units across Singapore, and in fact rentals of shoebox units are competing with bedroom rentals and the situation doesn’t look good if we continue to supply a lot of small-sized units in the market," said Mr Ku.

According to the Finance Ministry, provision has been made for when an Option To Purchase (OTP) has been granted to potential buyers on or before Feb 19. For these cases, the previous buyer's stamp duty rates will apply if the option to purchase is exercised within three weeks from the Budget announcement, or the OTP validity period, whichever is earlier.



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



  Today's  Stories                       February 22, 2018 
• Ayala Land raising P25B via notes, retail bonds Subcribe: Asean Affairs Global Magazine
• Indonesia prepares four fiscal incentives to boost investment Subsribe Now !
• Exports of tra fish to UK increase
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Novaland seeks approval for overseas listing, issuing shares
• Property stocks decline following higher buyer's stamp duty
Asean Analysis                  February 8,  2018
• Asean Analysis February 8, 2018
QUESTIONS FOR TRIPALLY FROM WWW.ASEANAFFAIRS.COM
Advertise Your Brand

Asean Stock Watch   Febriaru 21,  2018

• Asean Stock Watch-February 21, 2018
The Biweekly Update
• The Biweekly Update  October 27, 2017

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com