Buyer’s stamp duties (BSD) for higher-value residential and non-residential properties will be raised with effect from Wednesday, Finance Minister Lawrence Wong said in his Budget speech on 14 Feb 2023 (Tuesday).
This is expected to generate an additional $500 million in revenue a year. But the actual amount will depend on the state of the property market, he said.
For residential properties, the portion of the value of the property in excess of $1.5 million and up to $3 million will be taxed at 5 per cent, while that in excess of $3 million will be taxed at 6 per cent. This is up from the current rate of 4 per cent.
For non-residential properties, the portion of the value of the property in excess of $1 million and up to $1.5 million will be taxed at 4 per cent, while that in excess of $1.5 million will be taxed at 5 per cent. This is up from the current rate of 3 per cent.
This is expected to generate an additional $500 million in revenue a year. But the actual amount will depend on the state of the property market, he said.
For residential properties, the portion of the value of the property in excess of $1.5 million and up to $3 million will be taxed at 5 per cent, while that in excess of $3 million will be taxed at 6 per cent. This is up from the current rate of 4 per cent.
For non-residential properties, the portion of the value of the property in excess of $1 million and up to $1.5 million will be taxed at 4 per cent, while that in excess of $1.5 million will be taxed at 5 per cent. This is up from the current rate of 3 per cent.
There is a slight increase in Buyer Stamp Duty for Residential Properties
Generally, we do not expect this change to impact home sales significantly as the increase in BSD payment should be manageable for buyers of homes priced over $1.5 million and $3 million. For instance, a buyer purchasing a residential property that is valued at $2 million will see BSD payable rise by $5,000, which is not a big leap for those buying homes in this price tier.
There is also a slight increase in Buyer Stamp Duty for Non-Residential Properties
In Budget 2022, the Government had announced an increase in property tax rates that would take effect over two years from 2023, with steeper hikes for higher-end properties, particularly investment properties.
The property tax for owner-occupied residential properties was raised to 5 per cent to 23 per cent from 2023, and 6 per cent to 32 per cent from 2024, for the portion of the property’s annual value in excess of $30,000. This was up from 4 per cent to 16 per cent previously.
For properties that are not owner-occupied, including investment properties, the rate went up to 12 per cent to 36 per cent, from 10 per cent to 20 per cent.
The property tax for owner-occupied residential properties was raised to 5 per cent to 23 per cent from 2023, and 6 per cent to 32 per cent from 2024, for the portion of the property’s annual value in excess of $30,000. This was up from 4 per cent to 16 per cent previously.
For properties that are not owner-occupied, including investment properties, the rate went up to 12 per cent to 36 per cent, from 10 per cent to 20 per cent.
