Curbs on Bulk Purchases of Units within A Single Property Development
Ministry of National DevelopmentSpeakers
Summary
This question concerns whether a separate, higher Additional Buyer’s Stamp Duty (ABSD) tier should be introduced for bulk purchases of units within a single property development. Mr Yip Hon Weng inquired if bulk-purchase discounts cushion ABSD impacts and under what circumstances the government would consider introducing curbs. Minister Desmond Lee responded that current ABSD rates already moderate investment demand by differentiating based on residency and the number of properties owned. He noted that multiple-unit purchases are rare, accounting for about 1% of private residential sales this year, with transactions of more than two units at about 0.2%. Consequently, the Ministry deems bulk purchases unlikely to significantly impact the market but will continue monitoring developments to ensure a stable and sustainable property market.
Transcript
41 Mr Yip Hon Weng asked the Minister for National Development (a) whether the Ministry will consider creating a separate and higher tier of Additional Buyer’s Stamp Duty (ABSD) for property buyers who purchase more than a certain number of units in a single development across a period of time; (b) whether the benefits from purchasing property in bulk, such as bulk-purchase discounts, will negate or cushion the impact of previous ABSD increases; and (c) under what circumstances will the Ministry consider introducing curbs on bulk property purchases.
Mr Desmond Lee: The Additional Buyer’s Stamp Duty (ABSD) is structured to moderate investment demand in residential property and is therefore differentiated based on the residency status of the buyer and the overall number of residential properties owned.
ABSD discourages the purchase of multiple units, as higher rates generally apply to purchases by those who already own at least one residential property. Higher rates also apply to buyers who are not Singapore Citizens. In December 2021, we raised ABSD rates across all buyer profiles, except for Singapore Citizens and Permanent Residents purchasing their first residential property.
Instances of property buyers who have purchased more than one unit in a single development are uncommon. Among all private residential property units transacted so far this year, units involved in such multiple-unit purchases accounted for about 1%. Units involved in multiple-unit purchases of more than two units are even lower, at about 0.2%. Hence, bulk property purchases are unlikely to have a significant impact on the property market.
We will monitor developments in the property market closely and adjust our policies as necessary to promote a stable and sustainable property market.