While a second home abroad is undoubtedly desirable amongst Singaporean buyers, some of them still choose to invest at home especially in shophouse properties, which are not substantially impacted by the ABSD.
There’s massive trust in the government, especially in how the pandemic was handled among locals. Singapore’s reputation as economically and politically stable have likewise attracted foreign investors in, who view it as a safe haven.
Sotheby’s 2022 Luxury Outlook Report explored tax-friendly havens around the world, and Singapore, which has no capital-gains tax on property sales, emerged as one of the appealing options.
“Under free-trade agreements, nationals and permanent residents of Iceland, Liechtenstein, Norway, and Switzerland, and the US pay the same rate of buyer’s stamp duty as citizens of Singapore when acquiring residential real estate. Buyers and investors from these markets are likewise exempt from the ABSD for a first residential property purchase, which likely offers strong incentive for investors and permanent residents from these countries to proceed with this rare opportunity to own a home in Singapore,” said Fahmi.
Article source: https://www.channelnewsasia.com/obsessions/singaporeans-overseas-property-investment-2692016