The Singapore Business Review recently cited the driving sales in Singapore’s luxury home market brought about by the tax amnesty of Indonesia, citing Jefferies. The rise in transactions of premium residential sector is also traced to the modification of business to an investment hold family offices or office, according the American Global Investment Bank.
Another factor to point on is the introduction of stamp duties of countries like Australia and UK and surrounding Brexit. It further mentioned that companies are closing down especially those which are not involved in the real estate business due to various factors such as cost pressures, lack of growth, succession planning issues, thin margins due to competition and outright bankruptcy.
According to Knight Frank, Singapore posed the weakest luxury market for seven consecutive quarters as noted on quarter ending in March. Jefferies further noted that Other cities have also changed their tax regimes Stamp duties were introduced in London for second homes while foreign property buyers in Australia were also introduced to application fees. Therefore, ABSD in Singapore is now comparable to other places too thus attracting more dollar investments.