Buyer Stamp Duty from 2018 feb

Buyer Stamp Duty from 2018 feb

The impact of the 1-percentage point hike in the top marginal buyer’s stamp duty (BSD) rate on the portion of a residential property’s value exceeding S$1million will be felt most for big-ticket purchases.It affects more the expensive condo units, bungalows and what is happening more rampantly nowadays – land and en bloc property purchases by developers.
As the bulk of residential property deals are below S$1.5 million, the change to the BSD is expected to have only a mild impact on property demand.
It is said to be not a property cooling measure; it’s a measure to collect more revenue, and in line with having a more progressive tax system.”
As an example: for a S$1.5 million property, the BSD goes up from S$39,600 to S$44,600 – reflecting an increase of just S$5,000 or 0.33 per cent of the property price.
In the case of a S$2 million property, the BSD hike works out to 0.5 per cent of the purchase price; for a S$25 million property, the BSD increase would be 0.96 per cent of the property price.
For a developer buying a S$200 million residential site, its BSD rises from S$5.99 million to S$7.98 million. The S$1.99 million increase translates to nearly 1 per cent of the property price.
There is no change in the 1 to 3 per cent BSD rate for non-residential properties.
With the change unveiled during 2018’s Budget announcement , the first S$180,000 of the value of a residential property is taxed at 1 per cent; the next S$180,000 at 2 per cent; the following S$640,000 at 3 per cent and the portion of the value exceeding S$1 million, at 4 per cent.