RES exam question on Real Estate Market: A foreign national (not a PR) buys his first residential property in Singapore
Case study — A foreign national (not a PR) buys his first residential property in Singapore. He has never owned property here before. He is a 'foreigner' for ABSD purposes. Evaluate the statements: (i) Buyer's Stamp Duty applies on a tiered basis (ii) ABSD applies at the foreigner rate even though it is his first property (iii) Nationals of certain countries may enjoy treaty (FTA) remission of ABSD (iv) Foreigners pay no ABSD on a first property Which statements are CORRECT?
- A(i), (ii) and (iv) only
- B(ii), (iii) and (iv) only
- C(i), (ii) and (iii) only
- D(i), (ii), (iii) and (iv)
Show answer & explanation
Answer
C. (i), (ii) and (iii) only
Explanation
BSD is charged on tiered/marginal rates that rise with price (i). ABSD is imposed by residency status, not by whether it is your first purchase, so a foreigner pays the higher foreigner rate even on a first home (ii). Under free-trade agreements, nationals of certain countries are accorded the same ABSD treatment as Singapore citizens, so remission may apply (iii).
Why the other options are wrong
- (iv) is wrong: foreigners are not exempt from ABSD on a first property — that first-home relief belongs to citizens.
Study the concept behind this question: The Property Market & Government Intervention (Singapore)
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