ABSD
additional buyer’s stamp duty
( Updated May 2024 )
When purchasing a property in Singapore, the buyer is subjected to a Buyer’s Stamp Duty.
Then, there is also the Additional Buyer’s Stamp Duty (ABSD) which was implemented in 2011 as a cooling measure to moderate the demand, and hence the property prices, in Singapore.
The ABSD is applicable to:
In the case of a mixed-nationality married couple (Singapore citizen & foreign spouse) co-owning a property, the ABSD is not required if neither partner already owns a residential property in Singapore. Otherwise, the ABSD will be in effect and will be based on the higher rate i.e. that for a foreign buyer.
*Note - Under the respective Free Trade Agreements, Nationals or Permanent Residents of the following countries will be accorded the same Stamp Duty rates as Singapore Citizens:
ABSD Rates, Updated 2024
Foreigners
Any and all properties
Permanent Resident (PR)
First Property
Permanent Resident (PR)
2nd Property
Permanent Resident (PR)
3rd & subsequent properties
Singapore Citizen
1st property
Singapore Citizen
2nd property
Singapore Citizen
3rd & subsequent properties
ABSD Rate
(% of the property price)
60%
5%
30%
35%
0%
20%
30%
RESPONSES TO THE ABSD
( Updated May 2024 )
The latest revision to the ABSD rates took place in April 2023, with the rate for foreigners doubling to 60%, had raised many eyebrows. So, in this past year, what were the experiences like with foreign buyers who went ahead with purchases? What contributed to their decision-making?
We observed two deciding factors,
i) What it would have cost to buy a property in an alternative city, for instance, Shanghai.
ii) If the property is for personal residence, how long will the buyer be staying in Singapore?
The foreign buyers proceeded with the purchases after considering the above factors and felt that it was still worth it, especially since they had planned to live in Singapore for a while.
What about Singaporean Buyers?
Some Singaporean buyers proceeded with the purchases despite the ABSD, because of the availability of accurate information that helped them analyze the investment viability -- historical real estate transaction prices and rental rates in various parts of Singapore.
On the other hand, we also observed that there has been a greater interest in overseas properties and commercial properties as alternatives.