Proposal for Computation of Additional Buyer's Stamp Duty Based on Per Square Foot
03 Jul 2023Parliamentary Question by Mr Gan Thiam Poh:
To ask the Deputy Prime Minister and Minister for Finance whether the Additional Buyer’s Stamp Duty can be reviewed to be computed based on a per square foot basis.
Parliamentary Reply by Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong:
The Additional Buyer’s Stamp Duty (ABSD) is payable on the acquisition of residential properties based on the purchase price or market value of the property, whichever is higher. ABSD rates are tiered based on the number of properties held, to promote a stable and sustainable property market and prioritise housing for owner-occupation.
As the per square foot price of a property is typically higher for smaller residential properties compared to larger properties in the same area, imposing ABSD rates based on the per square foot price of a property would penalise buyers of smaller residential properties, while larger and higher value properties with lower per square foot price would pay less ABSD. This would not be equitable.
The Government will continue to monitor the residential property market closely, and consider the appropriate adjustments needed to promote a stable and sustainable property market.