A recent survey reveals that about 73 percent of Singaporeans still aim to own their dream homes, priced between S$1 million and S$3 million, despite rising financial pressures. Surprisingly, a third of these hopeful homeowners plan to achieve this goal within the next three years.
ERA's first My Dream Home Survey 2024 examined the housing aspirations of Singaporeans. The survey, conducted between June 24 and July 23, included 1,737 participants ranging from 21 to over 60 years old. Approximately 68% of respondents reported a monthly household income of less than S$12,000, while the other 32% earned S$12,000 or more.
But the road ahead for these young (and old) dreamers is a long one. Moreover, it’s filled with several challenges, including high property taxes, steep interest rates, difficulty obtaining large loans, and the additional buyer’s stamp duty (ABSD) on top of the standard buyer’s stamp duty (BSD).
In Singapore, the BSD is a tax that property buyers must pay when they purchase any property, whether residential or non-residential. The tax is calculated based on the purchase price or market value of the property, whichever is higher. The BSD rates are tiered as follows:
- 1% on the first S$180,000 of the purchase price or market value
- 2% on the next S$180,000
- 3% on the next S$640,000
- 4% on the price exceeding S$1 million
- 6% in excess of S$3 million
The Additional Buyer's Stamp Duty (ABSD) is a tax imposed for certain property purchases, primarily to regulate the real estate market and curb speculation. The ABSD rates vary depending on the residency status and the number of properties the buyer owns. It is usually waived for people buying their first residential property. From February 16, 2024, senior citizens, aged 55 and over, can claim an ABSD refund on their first property within 6 months of buying a new, lower-value home.
Mr. Marcus Chu, CEO of ERA Singapore, noted that the findings indicate Singaporeans' strong commitment to investing seriously in their homes.
"Despite financial hurdles that potential buyers may face, the majority are ready to spend to secure their ideal living space, highlighting the importance of home ownership as a cherished goal for many in Singapore."
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