Demand for high-end homes in Singapore remains firm despite the levying of duties aimed to cool the once-runaway market, according to one local developer.
The Additional Buyer Stamp Duty (ABSD) is a levy that places disproportionately higher premiums for non-Singapore citizens when purchasing residential properties in the city-state. In addition to the basic stamp duty paid by all buyers, foreigners pay additional 15 percent in stamp duty. Permanent residents of Singapore pay 5 percent additional stamp duty on their first property and 10 percent for subsequent ones.
Ong Chih Ching, executive chairman of KOP, told CNBC's "Managing Asia", "We are talking about 8 to 10 million [Singapore] dollar ($5.59 to 6.99 million) properties, so that's a lot of money [in additional stamp duty], that's more than enough for renovation."
But Ong added that if the government decides to lift the additional stamp duty in Singapore's property market, there will be a rush to buy homes. "I will sell at least half of my stocks overnight."
This is because property owners view Singapore as a global city and a haven in a world fraught with mounting geopolitical tension and financial turmoil.