Additional Buyer Stamp Duty Remission for Singles who have Bought a Second Property and Subsequently Sold First Property within Six Months
Ministry of FinanceSpeakers
Summary
This question concerns Mr Lim Biow Chuan’s inquiry on extending Additional Buyer’s Stamp Duty (ABSD) remission to singles who sell their first property within six months of purchasing a second. Minister for Finance Heng Swee Keat stated that ABSD applies to second property purchases by all Singaporeans to moderate demand and ensure market stability. He explained that a concession exists only for married couples due to changing family needs, allowing an ABSD refund if their first home is sold within six months of acquiring a new one. This remission is not extended to other buyer groups as the policy's key objective remains moderating demand for residential properties. Minister for Finance Heng Swee Keat suggested that buyers seeking to avoid ABSD should consider selling their first property before purchasing a replacement.
Transcript
64 Mr Lim Biow Chuan asked the Minister for Finance whether the Additional Buyer Stamp Duty remission can be extended to singles who have bought a second property and subsequently sold the first property within six months from their purchase of the second property.
Mr Heng Swee Keat: The policy intent for ABSD is to moderate demand among homebuyers, and to ensure a stable and sustainable property market. This in turn will help both existing and aspiring homeowners, by keeping price increases in line with economic fundamentals.
ABSD is applicable on the second and subsequent residential property purchases of all Singaporeans. This applies regardless of whether they dispose of their first property subsequently. This is because even if the first property is eventually disposed of, the purchase of the second property adds to the demand for residential properties.
We have made one exception, namely for Singaporean married couples. A Singaporean married couple may need to change home due to changing family needs, such as when they have more children or when their children are growing up. It is in this context that we have an ABSD concession for Singaporean married couples buying a second property. Under the concession, we allow Singapore married couples to claim a refund of the ABSD paid on their second property, provided they sell their first property within six months after the purchase of a completed property, or the TOP date of an uncompleted property.
This ABSD concession is not available to other groups of property buyers, as our overall key objective remains to moderate the demand for residential properties including that for second residential property of Singaporeans. Buyers who do not wish to incur the higher ABSD on second residential properties may wish to consider selling their first property before purchasing their replacement property.