Singapore Government announced anti-speculative measures to cool down property market.
1. impose stamp duty on Sellers who sell property within 1 year after purchase. Stamp Duty is about 3% on Purchase and with another round of Stamp Duty imposed on Sale, total stamp duty incurred by "speculator" would be close to 6%, plus property agent commissioon of 1%, other miscellaneous fees eg. legal fees, it would mean that it will take close to 10% appreciation in price for speculator to "break-even".
This measure likely to dampen speculation in property, and might lead to a fall in property prices.
Prices of HDB Resale flats shot up by 20% in year 2009. Prices of HDB Resale Flats continued to rise, with the median Cash Over Valuation (COV) climbing to over S$24,000. Minister Mah Bow Tan also expressed concerns about the possible speculation of HDB flats.
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