The latest Singapore Budget has a slew of policy changes to properties.
TikToker @househuntwithjoo did the breakdown and the math so you don’t have to:
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Private properties have only one adjustment: Buyer’s Stamp Duty (BSD)
If you’re buying private properties between S$1.5m to S$3m, you will have to pay an additional 1%, up from the 4% previously.
Since a lot of HDBs are going to hit the one million bracket soon, obviously they wouldn’t touch that range.
But this new increase in BSD will probably affect a lot of people (DPM said it would affect 15% of the residential properties and 60% of non-residential properties) because just last year, the island wide average transacted PSF has hit about $1,500.
This year, the PSF has already risen to about $1,700 per square foot.
Most of you who are opting for a three bedder will probably be after a property of 1,000 square feet or an average of $1.7m purchase price.
Thus, the purchase will easily fall within the $1.5 to $3 million range.
Is it enough to deter you from buying?
Probably not.
Below is a table where you can compare the additional dollar amount under the new rule.
| Purchase Price | Old Stamp Duty | New Stamp Duty | Difference |
| $2m | $64,600 | $69,600 | +$5,000 |
| $2.5m | $84,600 | $94,600 | +$10,000 |
| $3m | $104,600 | $119,600 | +$15,000 |
The only additional outlay that you’ll be expecting will be about $5,000 when you buy a $2m home.
The financial impact on the buyer may not be sufficient enough to deter you from your purchase.
And if you’re buying anything above $3 million, BSD will be at 6% instead of 4%.
But you should be fine – the difference is not going to be significant to anyone who can afford to buy an expensive home.
HDB policy changes
First timers were grumbling about not being able to get a ballot number.
You now get an additional ballot if you are married and below 40 years old, or have kids.
Next comes the highlight: increased housing grants!
First-timer families will receive $80,000 grant for a 2- to 4-room flat or $50,000 for a 5-room or larger flat.
Singles are qualified too although the quantum is lower – getting $40,000 grant for a 2- to 4-room flat or $25,000 grant for a 5-room flat.
But…
The property market is still bullish so why are we still incentivizing buyers to buy above what they can afford?
It doesn’t make sense when the government is trying to curb the number of million-dollar HDB transactions.
This is taking a step back.
Sellers are rejoicing though, they can ask for crazy Cash Over Valuations (COVs) and buyers can just pay them off artificially because of the increased grants.
These are just opinions from this Tiktoker:
@househuntwithjoo This was how my Vday went, how did yours go? #sgproperty #sgpropertyagent #sgrealestate #singapore #singaporeproperty #singaporeproperties #sgcondo #mamajoo #propertyjoo #househuntwithjoo #reelestate #fyp #sgbuysellrent #rentalsg #foryoupage #sgrealestate #sgtiktok #learningisfun #adulting #realestate #budget2023 ♬ original sound – HouseHuntWithJoo
