Implementation of Capital Gains Tax for Foreigners Purchasing Private Housing in Singapore

Ms Mary Liew asked the Minister for National Development whether the Ministry will consider the implementation of a capital gains tax for foreigners purchasing private housing in Singapore as a further measure to control the escalating prices of private housing.

Mr Khaw Boon Wan: Price growth in the private housing market has moderated significantly after several rounds of cooling measures. It slowed from 6.0% in 2011 to 2.8% in 2012. Over the first six months of this year, price growth further slowed to 1.6%.

Foreign buying has declined considerably since the introduction of additional buyers’ stamp duty (ABSD) in December 2011 and, more recently, higher ABSD rates in January 2013. The proportion of all purchases by foreigners fell from 18% in 2011 to 8% in the second quarter of this year. In absolute terms, the number of units purchased by foreigners fell from 2011's quarterly average of 1,400 units to 550 units.

The Government has no plans to introduce a capital gains tax. But we will continue to monitor the market and act, if necessary, to ensure that housing remains affordable to Singapore Citizens.