(April 27): Singapore has the highest property tax rate for foreign buyers among major global markets after the city state doubled the duty on Thursday (April 27).

The 60% additional buyer’s stamp duty that foreigners now pay for a home in Singapore means the city’s levies exceed those of other international hubs, including Hong Kong, London and New York by a large margin, according to Savills plc.

“We are pretty adamant that this is not only going to deter but will put a brake on investments” in Singapore, said Mark Elliott, the head of international residential sales at Savills in Hong Kong. “It will be great for London, the US and other markets.”

For a purchase of a property worth US$5 million (RM22.32 million), a foreign buyer will have to pay 65% in taxes in Singapore, including other levies, compared with about 4% in New York and 15% in London, data from Savills showed. That’s about US$3.25 million.

The city state also has about double the tax rate of Hong Kong and Vancouver, which have raised duties on non-resident buyers after past inflows of money, particularly from mainland Chinese, helped drive up property prices.

Hong Kong is a likely beneficiary of Singapore’s policy change, because more mainland Chinese may buy luxury residential properties in the territory instead, according to Bloomberg Intelligence. While Hong Kong charges 30% stamp duties on home purchases by foreigners, those who later become permanent residents can get most of it refunded as part of the city’s efforts to attract talent.