Proposal for Granting Upfront Remission of Additional Buyer’s Stamp Duty to Married Couples with at least One Singapore Citizen Spouse Purchasing Replacement Private Residential Property
Ministry of FinanceSpeakers
Summary
This question concerns MP Mr Chua Kheng Wee Louis’s proposal to grant upfront Additional Buyer’s Stamp Duty (ABSD) remission for married couples with at least one Singapore Citizen spouse purchasing a replacement private residential property. Minister Lawrence Wong explained that while a refund mechanism exists for couples selling their first property within six months, upfront remission is restricted to specific housing types. He clarified that upfront remission applies to HDB flats and new Executive Condominiums because buyers are already legally mandated by HDB regulations to dispose of their previous homes. In contrast, no equivalent regulatory requirements exist to mandate the sale of existing homes when purchasing private residential property. Consequently, the government maintains the policy of granting ABSD remission for replacement private properties only after the sale of the first property is completed within the stipulated timeline.
Transcript
68 Mr Chua Kheng Wee Louis asked the Minister for Finance with regard to the raising of Additional Buyer’s Stamp Duty (ABSD) rates for second properties, whether the Government can consider granting upfront remission of ABSD for married couples with at least one Singapore Citizen spouse who is purchasing a replacement private residential property, similar to the purchase of a HDB flat or an Executive Condominium unit from property developers by such married couples.
Mr Lawrence Wong: Mr Chua had asked a similar question at the Committee of Supply in March 2021. MOF had provided a response then and it remains valid.
Just to briefly recap, a concession is provided to Singapore married couples to allow them to claim a refund of the Additional Buyer’s Stamp Duty (ABSD) paid on their second property, provided they sell their first property within six months after the purchase of a completed property, or the Temporary Occupation Permit date of an uncompleted property. This is to support couples that need to change homes due to changing family needs, such as when they have children, when their children are growing up, or when they need to right-size in their senior years.
Singaporean married couples purchasing a HDB flat or a new EC unit are granted an upfront ABSD remission. The key reason for this is because they are subjected to HDB regulations which require them to not own other residential property, or to dispose of their existing residential property within HDB’s stipulated timeframe. As there are no such regulations for private residential properties, ABSD remission is only granted upon the sale of the first property within the required timeline.