Condo sales to foreigners down 71% since ABSD hike in April 2023

Drop was more stark in prime district, which typically draws more interest from investors

- Joyce Lim

The additional buyer's stamp duty (ABSD) hike has proven effective in dampening demand from foreign investors, as evidenced by a 71 per cent decline in condominium sales to foreigners in the past 12 months since it was rolled out.

Just 306 condo units were bought by foreigners from May 2023 to April 2024 (as at April 27) after the ABSD rate was raised from 30 per cent to 60 per cent on April 27, 2023.

In contrast, foreigners bought 1,064 condo units from May 2022 to April 2023, accounting for 5.4 per cent of total condo sales in that period. This figure fell to 1.8 per cent from May 2023 to April 2024.

Analysts noted that the decrease in foreign buyers was more stark in the prime district, or core central region (CCR), which typically draws greater interest from foreigners and investors.

In the 12-month period leading up to the ABSD hike, foreign buyers accounted for about 14 per cent of condo sales in the CCR. This dropped to about 6 per cent in the past 12 months.

Urban Redevelopment Authority (URA) data showed that fewer units changed hands after the ABSD hike. Sales volume fell 36.6 per cent, from 4,215 to 2,672 units sold in the CCR.