Singapore has doubled the tax on the purchase of property by foreigners to 60%, which is primarily aimed at deterring buyers from mainland China.

Singapore National Development Minister Desmond Lee called the hike “precautions” to reduce demand.

Foreigners who have received permanent residence will only pay 5% tax, and when buying a second home, they will pay 30%. Foreign entities or trusts buying any residential property will now pay more than 60%.

Chinese buyers accounted for 25% of foreign apartment purchases in Singapore in 2022, according to government data. Chinese billionaire businessmen are snapping up luxury properties, and rents for high-end apartments recorded a 28% year-on-year increase in the fourth quarter of 2022.

House prices in Singapore rose 3.2% in the first quarter of this year, compared with a 0.4% rise in the previous quarter, according to an extraordinary estimate from the City Development Authority released this month. Prices rose 8.6% last year compared to a 10.6% increase in 2021.

Signs of the influx of Chinese wealth into Singapore are many. Many of the country’s historic black-and-white bungalows have been converted into privately owned bars serving expensive wines and whiskeys and frequented by Chinese billionaires.

At the same time, the cost of an annual membership in private golf clubs has risen to $840,000 due to the “Chinese onslaught,” according to Singolf Services.

According to FT, Bloomberg