(May 11): Singapore authorities will take further steps in the property market if necessary to promote a “stable and sustainable” market, the Ministry of National Development said.

“We will continue to keep a close eye on both the commercial as well as residential property markets, and will take further steps if necessary,” according to a written reply by the Ministry of National Development in response to questions asked in Parliament.

The comments come after Singapore increased the tax that some homebuyers have to pay for property purchases. Singapore’s real estate has surged since the Covid-19 pandemic, with many wealthy professionals moving to the city state. Home prices have risen for 12 straight quarters, while sales are at a six-month high.

In measures that took effect from April 27, foreigners will pay 60% tax on any residential purchase, while the rate for using an entity or a trust was raised to 65%. Permanent residents and citizens buying their second residential property will also pay more.

The additional stamp duty comes on top of an existing tiered-tax for all homebuyers. The policy move is not expected to have “a significant impact” on the commercial or rental market, the ministry said. The vast majority of foreigners working in Singapore rent and will not be affected by the revision, it said.

Furthermore, the ministry expects to see signs of easing in the rental market amid more supply, and there are “early indications” that such demand is abating, it said.

The Urban Redevelopment Authority will release statistics for home sales in April next Monday (May 15).