Foreigners ‘bear the brunt’ of ABSD: Kim Eng

They now account for only 10% of total purchases compared to 20% previously.

According to Kim Eng analyst Ooi Yi Tung, foreigners bear the brunt of the new ABSD as they have to pay the highest tier of 10% for all residential property purchases. The impact on foreign buyers was immediate. They now make up about 10% of total purchases in the new sale market, down from about 20% previously.

“In the resale market, the drop was even more pronounced. Share of resale transactions from foreigners and companies, which also have to pay the highest tier of 10% ABSD for all residential purchases, fell from 47% in December 2011 to 15% in January 2012. Based on caveats that are already available for February 2012, their share continued to drop to 10% last month,” he added.