Foreigners staying away from Singapore properties

[abbby]

ok, finally an article on it..I am not surprised at 60% ABSD, which foreigner would buy other than those exempted countries..mainly US? I think the ABSD for foreigners should be lowered. At 60% it's just telling them not to buy.

https://www.straitstimes.com/business/p ... -duty-hike

[Pal]

If there are forum members from US, Iceland, Liechtenstein, Norway and Switzerland, you are taxed like a Singaporean when you are buying a residential property in Singapore.

Would love to hear from Expats from the above countries what's their take on buying property in Singapore.

[malcontent]

If there are forum members from US, Iceland, Liechtenstein, Norway and Switzerland, you are taxed like a Singaporean when you are buying a residential property in Singapore.

Would love to hear from Expats from the above countries what's their take on buying property in Singapore.

I’m one of them (US) and do not have a property in my name, so fully qualified for 0% ABSD. Does this incentivize me? Not in the least. The value of the property doesn’t change according to how much ABSD you pay, it’s just a tax for the “privilege” of buying a property. Since we already own the property we reside in under my spouse (bought pre-ABSD), that is already more than enough property exposure for me. Happy to put any extra money we have into the equity market which (historically) will easily outperform the property market in the long-run with a lot less hassle.

I would contend that many locals prefer property as an investment because it prevents their itchy fingers from trading it… so for them, property tends to outperform their other investments - not because it’s a better performing investment, but because they are forced to buy and hold. We all know there is a stated objective to keep property in SG affordable — that means you can’t count on a great amount of price appreciation in the future, limiting your upside… and rental yields here have always been rather paltry. I just don’t see great potential, even if I was inclined to invest in properties.

[Pal]

All fairly good points Malcontent.

You have chosen not to buy any property because you know of other investment options with better returns.

For the many locals out there without knowing other safe investment options, property investment is their option. Although much less liquid than other investments, it is easier for them to understand.

We can't deny the feel good factor of owning a real estate. A Singaporean dream for many.

If there are forum members from US, Iceland, Liechtenstein, Norway and Switzerland, you are taxed like a Singaporean when you are buying a residential property in Singapore.

Would love to hear from Expats from the above countries what's their take on buying property in Singapore.

I’m one of them (US) and do not have a property in my name, so fully qualified for 0% ABSD. Does this incentivize me? Not in the least. The value of the property doesn’t change according to how much ABSD you pay, it’s just a tax for the “privilege” of buying a property. Since we already own the property we reside in under my spouse (bought pre-ABSD), that is already more than enough property exposure for me. Happy to put any extra money we have into the equity market which (historically) will easily outperform the property market in the long-run with a lot less hassle.

I would contend that many locals prefer property as an investment because it prevents their itchy fingers from trading it… so for them, property tends to outperform their other investments - not because it’s a better performing investment, but because they are forced to buy and hold. We all know there is a stated objective to keep property in SG affordable — that means you can’t count on a great amount of price appreciation in the future, limiting your upside… and rental yields here have always been rather paltry. I just don’t see great potential, even if I was inclined to invest in properties.

[PNGMK]

My wife is American, I'm Australian. My name is already in one property. My wife's name is still available for a 0% ABSD purchase if anyone needs it (inbox me). The only way we would purchase for ourselves again is if we get washed out in a enbloc and needed a new place - even then we would be VERY reluctant to do so as the prop market here is very illiquid.

Personally I view the 60% ABSD as the boomers / silver gen of property investors absolutely screwing over the younger generation of property investors. This is a common problem in Singapore where the current PAP leadership just dump the issues on the next generation of men (not women - they get a pass on so much).

What will happen, and is happening with a market with low volume is that the rental market will go up and up as potential owners are forced to rent and potential sellers give up selling and push for better rent returns. This is happening and I don't see it (regardless of @WD40) every coming back down to pre 60% lows.

[Pal]

Agreed.

The 60% ABSD is causing problems for the future generations.

Foreigners will give up buying and this keeps the rental demand high.

Although ABSD is keeping the prices in check but if it remains 60%, foreigners will be excluded from the market and this can't be good in the longer term.

My wife is American, I'm Australian. My name is already in one property. My wife's name is still available for a 0% ABSD purchase if anyone needs it (inbox me). The only way we would purchase for ourselves again is if we get washed out in a enbloc and needed a new place - even then we would be VERY reluctant to do so as the prop market here is very illiquid.

Personally I view the 60% ABSD as the boomers / silver gen of property investors absolutely screwing over the younger generation of property investors. This is a common problem in Singapore where the current PAP leadership just dump the issues on the next generation of men (not women - they get a pass on so much).

What will happen, and is happening with a market with low volume is that the rental market will go up and up as potential owners are forced to rent and potential sellers give up selling and push for better rent returns. This is happening and I don't see it (regardless of @WD40) every coming back down to pre 60% lows.

[abbby]

I think only Americans will buy... don't hear much of other nationalities of foreigners buying. And with fujian gang abolished, even lesser.

[Pal]

Foreigners not under the above nationality aren't buying any Singapore residential property. This can't be good for the long term.

Will the gov lower the ABSD soon?

[Ignorant1]

Foreigners not under the above nationality aren't buying any Singapore residential property. This can't be good for the long term.

Will the gov lower the ABSD soon?

It still hasn’t dented the prices of property in Singapore. Don’t think the move is happening anytime soon

[Pal]

According to URA transacted data, the new ABSD rates has managed to keep properties in the core central region prices from much increment. Whereas in the other region, the prices are still flying.

Foreigners favour the properties in the CCR.

Foreigners not under the above nationality aren't buying any Singapore residential property. This can't be good for the long term.

Will the gov lower the ABSD soon?

It still hasn’t dented the prices of property in Singapore. Don’t think the move is happening anytime soon

[Ignorant1]

According to URA transacted data, the new ABSD rates has managed to keep properties in the core central region prices from much increment. Whereas in the other region, the prices are still flying.

Foreigners favour the properties in the CCR.

Foreigners not under the above nationality aren't buying any Singapore residential property. This can't be good for the long term.

Will the gov lower the ABSD soon?

It still hasn’t dented the prices of property in Singapore. Don’t think the move is happening anytime soon

Sounds like you agreeing with me ?
Government Surely won’t cut absd because the pace of increment has slowed down in one region and other region is flying .
Not to forget we are prices are coming in hot from last 2 years .

[Pal]

Yes, agreed.

Just feel 60% for foreigners are too harsh. Perhaps this is a propaganda to attract more foreigners to apply for PR and citizenship.

[PNGMK]

We are starting to see the repercussions in this where I own. Landlords doing crazy things to get rent returns up (subdividing and renting to over 8 unrelated persons) because while they'd normally sell they can't as volumes are zero. I'm on the MC and the Sinkies are bitching about it. I just point at the ABSD and tell them to write to their MP. This is a wholly self induced crisis.

The older folk who had planned to downgrade to a HDB are suddenly locked out and I have not seen a single foreign prospective buyer for months in our development.

Our development is not really set up for rentals to large groups and the MC is struggling to accept this. Our intercom, gate pass and elevators are overloaded now and we are having what looks like security issues to me. I've told them that if the development moves to being mostly rentals we will have to invest in better systems but sinkies hate spending money on anyone else's problems.

You sow what you reap.

[Pal]

The limit of 8 unrelated pax will be super messy for any condos. Imagine each pax is only renting their rooms for 3 months, you will potentially have 96 different occupiers for that unit

Can imagine the admin work of the management updating occupiers particulars, access cards, etc.

The landlords who subdivided and renting out their units will be the one reaping the benefits of getting more rental income. Whereas those owners not renting out will be slapped with a higher property tax when IRAS increase the annual value of the property due to higher average rent in the development.

Luckily this is just a temporary measure and till 31 Dec 2026.

Has your Annual Value increased for 2024? Some friends of mine have got their property tax doubled due to increase of the AV and the higher progressive tax brackets. We no longer has a flat rate of 4% for owner occupied property anymore

We are starting to see the repercussions in this where I own. Landlords doing crazy things to get rent returns up (subdividing and renting to over 8 unrelated persons) because while they'd normally sell they can't as volumes are zero. I'm on the MC and the Sinkies are bitching about it. I just point at the ABSD and tell them to write to their MP. This is a wholly self induced crisis.

The older folk who had planned to downgrade to a HDB are suddenly locked out and I have not seen a single foreign prospective buyer for months in our development.

Our development is not really set up for rentals to large groups and the MC is struggling to accept this. Our intercom, gate pass and elevators are overloaded now and we are having what looks like security issues to me. I've told them that if the development moves to being mostly rentals we will have to invest in better systems but sinkies hate spending money on anyone else's problems.

You sow what you reap.

[malcontent]

<remove, duplicate post>