To tame home prices Singapore makes property purchases costly for foreigners

Foreigners buying property in Singapore will now have to pay more, the government said on Friday as it continued to take several measures to cool home prices that have continued to rise despite an economic slowdown.

Starting today, foreign buyers have to pay total stamp duties at 18 per cent of the property's valuation, against 13 per cent till Friday, a government press release said.

Foreigners who are permanently resident in Singapore will also have to pay eight per cent stamp duty, up from three per cent.

Resident Singaporeans, who will continue to pay the old three per cent stamp duty for property purchases, will have to pay more by way of stamp duty for any additional property.

The government also raised the minimum cash down-payments for individuals applying for loans for second or subsequent homes from 10 per cent to 25 per cent.

''We have to take this further round of measures now, to check recent market trends and avoid a more serious correction in prices further down the road,'' finance minister, Tharman Shanmugaratnam said.