Pay & Pay: The Story of ABSD
November 28, 2019
Have you heard of Additional Buyer’s Stamp Duty? Buyer’s Stamp Duty (BSD) yes, but why is there the word ‘additional’ in front now? Is it government trying to take more moola off me?!
Well it’s likely wealthier locals in Singapore are more familiar with this term seeing as ABSD is applicable for those who purchase additional properties. One property also burns a hole in my pocket; I don’t know how someone can even afford two or even more?!
For every property purchase, one will need to fork out BSD, which is the amount of tax you’ll have to pay based on either the purchase price or market value of your property (whichever is higher so the government can earn every single cent off you). ABSD is a fee that’s on top of BSD, specifically for:
- Singapore citizens purchasing their second, third, fourth…… property
- Singapore Permanent Residents buying their first property and more
- Foreigners buying any property
So basically, only Singaporeans that are purchasing one property are free from ABSD. The rest – just pay and pay only, no big deal.
Recent news indicates there’s a 2020 ABSD deadline; what does that mean? Isn’t it just an individual that pays ABSD?? Well, guess what – even developers may have to pay ABSD. So, for developers, how it works is that they have to pay ABSD should they not be able to sell out all the units within their property within the 5 years set deadline. So, if a developer has even one unit that’s not been sold, they’ll need to fork out quite a substantial fee (15% of land price + 5% interest/annum)
With that being said, it’s no wonder property hunters’ eyes have lit up, hoping that prices for remaining units will fall in a bid to counter the ABSD deadline. You may want to keep your eyes peeled for some potential bargains for these five properties that have looming deadlines (in order of least % sold):
1) Cayman Residences (89% sold)
Located in District 15, the 19-unit freehold terrace is the epitome of luxury. Each unit has three storeys and an attic, with a private lift that serves each level. In addition to luxury within, there’s no shortage of offerings outside of the complex with multiple transport, shopping centres, F&B options and educational institutions all around.
2) Artra (90% sold)
Arta is a mixed-use development that’s right beside Redhill MRT station, which means you enjoy extreme convenience as all your wants and needs are sorted seeing as all the retail shops and supermarket are located on the ground floor. You can even send your children to the childcare centre on the second floor – so there will no longer be that mad rush to get them to school before dashing off to work! In addition to that, enjoy the countless facilities throughout the development such as a leisure, sky and roof terraces.
3) Queens Peak (96% sold)
Situated close to Queenstown MRT is Queens Peak, a 736-unit condominium that allows you to enjoy serenity yet is close enough to all that the city has to offer. Facilities are aplenty in this development, with 77 different facilities split into seven zones for residents to enjoy after a long day or during the weekend.
4) Forest Woods (99% sold)
Forest Woods in situated in the popular District 19 area, where there are a total of 519 units across seven blocks. The location of Forest Woods is top-notch seeing as it’s located a short 5 minutes’ walk from Serangoon MRT Interchange that has both the Circle and Northeast line to make traveling around Singapore a breeze. With several malls, dining options and sports facilities all around, you’d want to get your hands on this property before the last few units run out!
5) The Alps Residences (99% sold)
Ah the popular estate of Tampines, where just being located in this estate is a huge pull. The Alps Residences, which has a total of 626 units is relatively close to the ever-popular Tampines central that’s just a short 8 minutes drive away. Or if you’re up for a walk, you’ll be able to reach this hotspot in around 20 minutes. Right now, there are shuttle buses arranged to get you to and fro Tampines MRT with ease.Your grocery, household and sporting needs are easily sorted with Courts Megastore, Giant, IKEA and Decathalon all just a short drive away.
With only a few units left, you’ll want to make your purchase ASAP seeing as we’re also expecting a number of other facilities to pop up in this part of Tampines in the coming years!