Singapore, 27 Apr 2023 Vera Liu, a Singapore property agent, was panicking in the wee hours of Thursday morning after new property taxes saw two of her deals fall through.
Singapore raised levies on private property purchases in a surprise move late on Wednesday night to cool the market, including a doubling of stamp duties for foreigners to an eye-watering 60%.
Christine Sun, the senior vice president of research & analytics at OrangeTee & Tie, called it a "freezing measure" for foreign buyers.
"Luxury home sales may experience more impact and a temporary pullback in demand from these buyers."
Sun said the move could be in anticipation of more Chinese buyers — who make up the bulk of foreign luxury home purchases — in the coming months.
Analysts, however, are unsure if the new rates can really cool the market.
Sun said while prices may slow for a while, the super-rich may continue to buy, keeping prices elevated.
"From past experience, demand will usually rebound after a few months as supply remains low and those who need a home will still need to buy one eventually," she said.