Welcome to our latest blog post on the Singapore budget 2023, announced by none other than Lawrence Wong! The government has just released a new budget that is set to have a significant impact on various sectors in Singapore, including property, healthcare, and education. As a result, many people are curious about what this new budget means for them and how it will affect their daily lives.
In this post, we will focus on the impact of the budget on property stakeholders in Singapore. We have compiled a comprehensive summary of the budget’s impact on the property market, including the latest changes in stamp duty rates, property tax, and other key policies that will affect homeowners, investors, and developers.
Whether you are a property owner, investor, or simply interested in Singapore’s property market, this post will provide you with all the essential information you need to know about the Singapore budget 2023 as announced by Lawrence Wong. So let’s dive in and explore the latest updates on the property market in Singapore!
The Buyer’s Stamp Duty (BSD) is a tax imposed on buyers of residential properties in Singapore. Prior to 14 February 2023, the BSD is calculated based on the purchase price or market value of the property (whichever is higher), and the marginal tax rate ranges from 1% to 4% depending on the purchase price of the property. In the updated budget, we will be seeing an additional tier for property priced above $1.5 million at 5% rate. Read on to see how much additional buyer’s stamp duty you are expected to pay when buying a residential property in Singapore.
Buyer’s Stamp Duty (BSD) is a tax paid by buyers when they purchase a property in Singapore. The amount of BSD payable depends on the purchase price of the property. The BSD rates are tiered, which means that different rates apply to different portions of the purchase price.
Here is an example of how to calculate the BSD payable on a property that costs $2 million BEFORE 14 February 2023
| Purchase price | BSD rate | BSD payable |
|---|---|---|
| First S$180,000 | 1% | S$1,800 |
| Next S$180,000 | 2% | S$3,600 |
| Next S$640,000 | 3% | S$19,200 |
| Remaining amount in excess of S$1,000,000 (S$2,000,000 – S$180,000 – S$180,000 – S$640,000 = S$1,000,000) | 4% | S$40,000 (S$1,000,000 x 4%) |
| Total | S$64,600 |
Here is an example of how to calculate the BSD payable on a property that costs $2 million after 14 February 2023.
| Purchase Price | BSD Rate | BSD Payable |
|---|---|---|
| First S$180,000 | 1% | S$1,800 |
| Next S$180,000 | 2% | S$3,600 |
| Next $640,000 | 3% | S$19,200 |
| Next $500,000 | 4% | S$20,000 |
| Next $1,500,000 (S$2,000,000 – S$180,000 – S$180,000 – S$640,000 – S$500,000 = S$500,000) | 5% (new tier) | S$25,000 (S$500,000 x 5%) |
| Remaining amount in excess of S$3,000,000 | 6% (new tier) | S$0 (S$0 as property is less than S$3,000,000) |
| Total | S$69,600 | |
Buyer’s Stamp Duty (BSD) is a tax that is charged by the Singaporean government on the purchase of any property located in Singapore, including non-residential properties as well.
Here is an example of how to calculate the BSD payable on a property that costs S2 million BEFORE 14 February 2023
| Purchase price | BSD rate | BSD payable |
|---|---|---|
| First S$180,000 | 1% | S$1,800 |
| Next S$180,000 | 2% | S$3,600 |
| Next S$640,000 | 3% | S$19,200 |
| Remaining amount in excess of S$1,000,000 (S$2,000,000 – S$180,000 – S$180,000 – S$640,000 = S$1,000,000) | 3% (No change) | S$30,000 |
| Total BSD payable | S$54,600 |
Here is an example of how to calculate the BSD payable on a property that costs $2 million AFTER 14 February 2023
| Purchase Price | BSD Rate | BSD Payable |
|---|---|---|
| First S$180,000 | 1% | S$1,800 |
| Next S$180,000 | 2% | S$3,600 |
| Next S$640,000 | 3% | S$19,200 |
| Next S$500,000 | 4% (new tier) | S$20,000 |
| Remaining amount in excess of S$1,500,000 (S$2,000,000 – S$180,000 – S$180,000 – S$640,000 – S$500,000= S$500,000) | 5% (new tier) | S$25,000 (S$500,000 x 5%) |
| Total BSD Payable: | S$69,600 | |
In Singapore, the Housing and Development Board (HDB) provides various types of housing grants to eligible Singaporean citizens and Permanent Residents to help them with the cost of purchasing or upgrading their homes.
These grants are designed to make housing more affordable for Singaporeans, particularly those with lower to middle-income households, and to help them achieve their home ownership aspirations.
The increased in grant is a definitely a welcomed initiative by many Singaporeans who are feeling the pinch of increasing property prices.
The Singles Grant was introduced to recognize the increasing trend of singlehood in Singapore, and to provide support for singles who may not have a spouse or family to help them with the cost of buying a home.
To be eligible for the Singles Grant, applicants must be at least 35 years old, and have a monthly income not exceeding S$7,000. They must also be first-time buyers of a resale HDB flat, and be Singaporean citizens.
Singapore’s budget for 2023 is an important policy document that outlines the government’s plans for the country’s economic and social development in the coming year. One area of particular interest to many Singaporeans is the housing sector. With rising property prices and concerns about housing affordability, many will be looking to see how these measures will address these issues in the following quarters.
As a realtor working in a continuously changing economic landscape, it is increasingly important to advise my clients beyond transactions. Every client’s financial situation is unique, there is no one size fits all solution for every case. As a realtor myself, my job goes beyond transactions, it is important to go beyond my duties and assist my clients to seek the best outcome possible beyond property-related matters.
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