HDB is Overtaxing Buyers through Stamp Duty Fee Structure

AARON CHIA: I noticed that HDB resale buyers are required to pay for stamp duty, not based on purchase price but “on purchase price or market value, whichever is higher”.

When the market conditions are good, sellers sell their flat at a high price, with high COV, and the stamp duty is based on the true value – selling price.

When the market is bad, for instance, now, the buyer actually pays a price lower than the valuation. Why is the buyer in HDB resale transactions paying at market value (stamp duty) when the true value is lower than the valuation?

Why are stamp duties not calculated based on actual selling price/purchase price?

Are buyers overtaxed again?

This letter was written by Aaron Chia.
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