Recently, I looked at a freehold condominium called Flora View near my home which seemed to be recently priced at slightly more than $1 million.
When I carried out further research, I realized that I had to pay an Additional Buyer Stamp Duty (ABSD) of 10% on the property in additional to the normal stamp duty which works to slightly less than 3%.
This would add another 13% to the cost of the property, before counting lawyer fees. The property becomes unattractive to me. Anyway, all of the units in that development had been fully sold out.
I learned more about the ABSD, SSD and TSDR. For those who want to invest in a condominium and are still confused about these terms, you can find a brief explanation here.
The government is trying its best to moderate the property prices. They are doing a good job, so far. We should support the cooling measures, even though it knocked me out of the market for the time being.
I agree that there is no free market in property, because the government controls most of the land and wants to extract the highest price. Even the private land owners join the band wagon.
I also agree that the policy of high property prices is damaging the economy and the livelihood of the people. It also explains our declining birth rate.