Categorized | International

Singapore Becomes Latest Country to Curb Property Prices

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In a move similar to that of China and Hong Kong, Singapore’s government has decided to take action against soaring property prices. In an effort to prevent that creation and bursting of a property bubble, Singapore’s government imposed a new tax on Thursday that targets foreign investors looking to buy property in the country.

According to the new policy, foreign investors must now pay an additional ten percent stamp duty on the value of the home that they are purchasing. International investors are not the only homebuyers targeted by the measure, however. Residents of the country who plan to buy more than any number of homes beyond their first must pay an additional three percent on top of their purchase price.

Property prices have risen consistently for more than two years, and are now at the highest level in history. Government officials fear that the steadily rising prices would eventually cause a crash in sales and pricing that they would not be able to control.

Analysts believe that the new government measures will likely cause a serious decline in pricing in the housing market, as international investors make up a significant portion of homebuyers in Singapore. Despite predictions of price drops, Singapore’s government is standing by the new policy. The government has stated that by enacting such a measure, they will be able to have more control over price drops, and ultimately avoid a much more detrimental crash.

China’s government has taken a similar stance with respect to property pricing drops. While China’s market is expected to drop as much as thirty percent in the next year or two, government officials are taking comfort in knowing that the declines were essentially self-impsed.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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