Singapore’s stamp duty collection has surged by an impressive 9.5% in the fiscal year 2024, reversing a two-year decline that had previously dampened government revenue projections. The Inland Revenue Authority of Singapore (IRAS) reported total stamp duty receipts of S$6.4 billion, up from S$5.8 billion in the preceding fiscal year, marking a significant turnaround in this revenue stream which now constitutes approximately 7.2% of Singapore’s total tax revenue.
The resurgence in stamp duty collection coincides with broader fiscal growth, evidenced by IRAS’s overall tax revenue reaching S$80.3 billion during the same period. This upward trajectory can be attributed to several policy adjustments implemented in the property market, most importantly the substantial increase in Additional Buyer’s Stamp Duty (ABSD) rates.
Foreign buyers now face an ABSD of 60%, up from the previous 30%, while Singapore citizens purchasing second properties must contend with a 20% rate, and those acquiring third or subsequent properties face a 30% rate. These measures are part of the government’s coordinated effort to curb speculation in the property market while promoting sustainable growth.
Singapore’s aggressive tax policy hits foreign investors hardest, with ABSD rates now doubled to 60%, while local homebuyers face escalating duties for multiple properties.
Entities engaged in property transactions have experienced the most substantial rate adjustment, with ABSD increasing from 35% to 65%. Complementing these measures, changes to the Seller’s Stamp Duty framework have introduced rates ranging from 4% to 16% for properties sold within specified holding periods, effectively discouraging speculative short-term investments in real estate. The government has specifically targeted the concerning rise in sub-sale transactions, which increased dramatically from 178 in 2020 to 1,306 in 2024.
The composition of stamp duty revenue reveals residential property transactions as the primary contributor, though commercial and industrial property deals also maintain significant relevance to the overall collection.
Market response to these policy changes has been remarkable, with some investors accelerating purchases ahead of implementation dates while others adapted their strategies to accommodate the new fiscal environment.
While property tax revenue for FY2024 stood at approximately S$5.9 billion, slightly below stamp duty receipts, the sustainability of stamp duty’s growth trajectory remains contingent upon property market cycles and broader economic conditions.
Analysts anticipate continued volatility in this revenue stream as market participants adjust to the revised duty structure.
