(Bloomberg) — Singapore has the very best property tax charge for international patrons amongst main world markets after the city-state doubled the obligation Thursday.

The 60% Further Purchaser’s Stamp Obligation that foreigners now pay for a house in Singapore means town’s levies exceed these of different worldwide hubs together with Hong Kong, London and New York by a big margin, in response to Savills Plc. 

Learn extra on Singapore’s newest property curbs

“We’re fairly adamant that this isn’t solely going to discourage however will put a brake on investments” in Singapore, mentioned Mark Elliott, head of worldwide residential gross sales at Savills in Hong Kong. “It is going to be nice for London, the US and different markets.”

For a purchase order of a property price $5 million, a international purchaser should pay 65% in taxes in Singapore, together with different levies, in contrast with about 4% in New York and 15% in London, information from Savills present. That’s about $3.25 million. 

The town-state additionally has about double the tax charge of Hong Kong and Vancouver, which have raised duties on non-resident patrons after previous inflows of cash, notably from mainland Chinese language, helped drive up property costs.

Hong Kong is a possible beneficiary of Singapore’s coverage change as a result of extra mainland Chinese language might purchase luxurious residential properties within the territory as a substitute, in response to Bloomberg Intelligence. Whereas Hong Kong prices 30% stamp duties on dwelling purchases by foreigners, those that later turn out to be everlasting residents can get most of it refunded as a part of town’s efforts to draw expertise.