Hi, my name is Alan from AlanWeeProperty. Welcome back to my YouTube channel. On the 14 Feb 2023, our Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong deliver his budget speech. Mr Wong has raised the Buyer’s Stamp Duty and Additional Conveyance Duties for Buyers. In addition, he also increases CPF Housing Grant by up to $30,000 or up to $190,000 in total for eligible First-Timer families purchasing resale HDB flats. Is this another round of property cooling measures? Let us go into the details first.
Buyer's Stamp Duty for Buyers for residential properties
The Government announced that the top marginal Buyer’s Stamp Duty or BSD for short, rate for residential and non-residential properties will be raised to enhance the progressivity of the BSD regime.

The Government announced that the top marginal Buyer’s Stamp Duty or BSD for short, rate for residential and non-residential properties will be raised to enhance the progressivity of the BSD regime.
For residential properties, the portion of the value of the property in excess of $1.5 million and up to $3 million will be taxed at 5%, while that in excess of $3 million will be taxed at 6%; up from the current rate of 4%.
My company has come out with this simple diagram. If the purchase price is below $1.5 million. No changes to the BSD. If price is $2 million, you pay extra $5,000 or 8% more. If price is $3 million, you pay an extra $15,000 in taxes or 14% more. If price is $5 million, you pay an extra $55,000 or 30% more. In short, this is progressive tax.


In very simple layman’s terms, our government is telling you. Please continue to buy property. We have never ever stopped you from buying. But if you can afford to buy more expensive property. Just go and buy and pay more taxes. That all. In Hokkien it means. “要买就买,给钱就买,没问题.”
Is the same for taxes for luxury cars. If you are driving a simple Japanese or Korean car. You are safe. If you want to own a Lambo, Maserati or Bentley. Can also. On behalf of all low-income families, seniors, and children. I would like to thank you for nation-building. Thank you so much for your money. So next time, when you see a luxury car on the road. Don’t say they hao lian. In fact, you have to be grateful to them because they are technically paying more taxes and subsidy your expenses. Let’s give these top earners a round of applause.


Buyer's Stamp Duty and Additional Conveyance Duties for Buyers for non-residential properties
For non-residential properties, the portion of the value of the property in excess of $1 million and up to $1.5 million will be taxed at 4%, while that in excess of $1.5 million will be taxed at 5%; up from the current rate of 3%. What does all this mean? In short, our government also never stops you from buying that office, shophouse, or industrial space. If you want to buy more expensive property. Please pay tax accordingly.
On another note, they are smart to raise tax for non-residential properties too. This is because they know Singaporeans will whack non-residential property again and push up their prices. Here, they are telling you. Don’t play play. Resi now cannot play already. Don’t play office and industrial properties hor. Big brother is watching you.



Increase in Maximum Amount of CPF Housing Grant for First-Timers Buying Resale Flats
HDB will increase the CPF Housing Grant from $50,000 to $80,000 for eligible First-Timer families buying a 4-room or smaller resale flat, and from $40,000 to $50,000 for First-Timer families buying a 5-room or larger resale flat.
Eligible First-Timer singles will similarly receive an increased CPF Housing Grant from $25,000 to $40,000 when buying a 4-room or smaller resale flat, and from $20,000 to $25,000 when buying a 5-room resale flat.
With these increases, eligible First-Timer families buying a resale flat can then receive up to $190,000 in housing grants. For eligible First-Timer singles, the revised housing grants can be up $95,000.




Personally, I think these grants are made in the right move to support first-timers.
MND and HDB have issued a press release after the Budget announcement. Let me quote what the press release said:
“The resale market meets the housing needs of first-time homebuyers who may have specific locational preferences such as living near their parents for mutual care and support, or a desire to secure homes sooner. However, the current strong HDB resale market may pose affordability challenges for some homebuyers.
Here, our government knows that the HDB resale market is at an all-time high. And first-timers are feeling the heat. That is why this grant is to soften the impact of rising resale prices. To be fair, this grant is long overdue since it was first announced a decade ago. Prices of the resale flat have risen significantly.
Will this push up resale prices? I think yes. Because more demand will lead to higher prices. But really bo pian. Our government is really stuck in today’s situation. They have already cool the HDB segment by holding off private property owners from buying HDB flats in the Sep 2022 cooling measures.
Let me continue the press release. The Government implemented two rounds of cooling measures. Take note, they mentioned cooling measures here in Dec 2021 and Sep 2022. So this means our Government considers them as the official cooling measure and no mention of cooling measures was made in this budget. Hence, we can safely say this is not a property cooling measure.
In short, our government knows what is actually happening to the HDB resale market. Of course, they know. They are our governing body and they have all the data with them. By the way, they also have secret undercover agent like me that feedback to the minister once in a while. Sorry folks, when I see something not right. I think its our duty to feedback so that Singaporeans can own affordable public flats.
Summary
In summary, the marginal Buyer’s Stamp Duty (BSD) rate for residential and non-residential properties is not considered as cooling measure. The government has stated very clearly, it is a marginal increase. If you can afford to buy. Please pay more taxes. Personally, I think this is a good move too. They are the robin hood of modern Singapore. Tax the riches more and distribute them to the poor. For the riches. You have made it in life and live a luxurious life so please don’t complain. I think it is fair to pay more taxes whether through income tax or stamp duties.


For the poor, I know where you come from. I was born in a 3-room HDB flat in Bedok and subsequently, my first matrimonial flat was also a humble 3-room HDB resale flat. Life is tough and every cent count. That is why I am very thankful that I have received many rebates from S&CC and utility rebates over the years.
Once again, thank you for watching my YouTube video. If you enjoy what I say. Please help me smash on the subscribe and like button so that I can achieve my 1,000 subscribers soon. Thank You.