ABSD Second Property Guide: Financing Impact 2026 | Homejourney
The definitive guide to navigating Additional Buyer's Stamp Duty (ABSD) for second homes, upgraders, and investors in Singapore's 2026 property market.
Executive Summary
Singapore's Additional Buyer's Stamp Duty (ABSD second property) stands at 20% for Singapore Citizens buying their second residential property, effective from 27 April 2023 and unchanged in 2026. This tax significantly impacts additional property financing, adding S$200,000 to a S$1 million purchase and reshaping loan strategies for upgraders and investors[1][2].
Homejourney prioritizes your safety and trust by verifying all data from official sources like IRAS, helping you make confident decisions on second home ABSD without surprises. Use our bank rates page to compare financing options from DBS, OCBC, UOB, and more while factoring in ABSD costs.
Table of Contents
- 1. ABSD Overview: What You Need to Know
- 2. Current ABSD Rates for Second Properties (2026)
- 3. ABSD for Joint Purchases and Families
- 4. Financing Implications of ABSD on Second Properties
- 5. Upgrader ABSD Strategies: Sell First or Pay Up?
- 6. Investment Property Tax: ABSD for Investors
- 7. ABSD Calculations with Real Singapore Examples
- 8. ABSD Remissions, Exemptions, and Refunds
- 9. TDSR, MSR, and Loan Eligibility with ABSD
- 10. Homejourney Tools for ABSD-Safe Financing
- 11. FAQ: ABSD Second Property Common Questions
- 12. Next Steps with Homejourney
1. ABSD Overview: What You Need to Know
Additional Buyer's Stamp Duty (ABSD) is a tax on residential property purchases in Singapore, designed to cool the market and promote homeownership for first-timers. Unlike Buyer's Stamp Duty (BSD), which everyone pays, ABSD kicks in for second and subsequent properties based on your buyer profile[1][5].
For ABSD second property, Singapore Citizens (SC) face 20% on the purchase price or market value, whichever is higher. This was hiked from 17% in 2023 to curb speculation amid rising prices in areas like Toa Payoh and Bedok[1].
ABSD must be paid within 14 days of signing the Sale & Purchase Agreement, upfront and non-refundable unless specific conditions are met. Homejourney verifies these rules from IRAS to ensure transparency, protecting you from costly errors.
Key Fact: ABSD applies at the point of purchase, not ownership count post-sale. Plan financing accordingly via Homejourney's mortgage calculator.
Why ABSD Matters for Financing
ABSD inflates your total acquisition cost by 20-65%, squeezing cash reserves and loan-to-value (LTV) ratios. Banks assess your ability to service loans under Total Debt Servicing Ratio (TDSR) at 55%, including ABSD-related outlays[1].
2. Current ABSD Rates for Second Properties (2026)
Rates are unchanged since 27 April 2023, per IRAS. Here's the breakdown:
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Property |
|---|---|---|---|
| Singapore Citizen (SC) | 0% | 20% | 30% |
| Singapore PR (SPR) | 5% | 30% | 35% |
| Foreigner (FR) | 60% | 60% | 60% |
| Entities/Trusts | 65% | 65% | 65% |
Source: IRAS (2026 rates)[1][4]. Rates on higher of purchase price/market value. Joint buys use highest profile rate.
For SC upgrader ABSD, your second condo in Punggol at S$1.2M triggers S$240,000 ABSD. Pair with BSD (up to 6% above S$3M) for total duties ~S$300,000[4][5].
BSD vs ABSD: Quick Comparison
BSD is tiered (1-6%), ABSD is flat-rate add-on. Total for S$1.5M second property (SC): BSD ~S$60,000 + ABSD S$300,000 = S$360,000[5].
3. ABSD for Joint Purchases and Families
In joint buys, ABSD uses the highest profile among buyers. Example: SC (2nd property, 20%) + SPR (1st, 5%) = 20% ABSD[1].
Family Tip: Spouses count properties separately until married. Post-marriage, sell one to reset for first-time status—but contract to sell before new purchase[1]. Insider: Many Toa Payoh upgraders time HDB sales via Sell HDB Buy Private: Ultimate Upgrade Financing Guide | Homejourney strategies.
- Parents + child: Child's profile may dominate if lower.
- Decoupled parents: Each treated individually for ABSD.
4. Financing Implications of ABSD on Second Properties
Additional property financing now demands 25%+ downpayment (LTV cap for second homes), plus 20% ABSD cash. For S$1.2M condo, ~S$480,000 cash needed upfront[1].
Banks like DBS and OCBC factor ABSD into affordability under MSR/TDSR. Use Homejourney's bank rates to compare SORA loans from partners: DBS (3M SORA +0.5%), OCBC (fixed 2yrs @2.8%).
Impact on Loan Tenure: Shorter tenures post-ABSD to meet TDSR, raising monthly payments by 15-20%.
Cash Flow Strain Example
Monthly income S$15,000 family: TDSR limits debt to S$8,250. ABSD cash crunch forces smaller loans, delaying upgrades from Yishun HDB to Sengkang condo.
5. Upgrader ABSD Strategies: Sell First or Pay Up?
Upgrader ABSD avoidance: Contract to sell existing HDB before new Option to Purchase (OTP). No ABSD if only one property at purchase[1].
Real example: Bedok family sells 4-room HDB (S$600k) before S$1.4M Punggol EC OTP. Saves S$280k ABSD. But Temporary Extension needed if gap >3 months[1].
Alternative: Pay ABSD, claim refund post-sale within 6 months (SC only, conditions apply). Risk: Market dip erodes equity.
Pro Tip: Time via HDB Loan vs Bank Loan 2026 Comparison | Homejourney for HDB vs bank loans.
6. Investment Property Tax: ABSD for Investors
Investment property tax via ABSD hits 20% (SC second) or 30% (SPR). Entities face 65%, killing flips[1].
2026 trend: Investors eye Johor but Singapore ABSD locks capital. Finance via equity from primary home, but TDSR caps at 55%[1].
Homejourney's property search filters investment options within budgets post-ABSD.
7. ABSD Calculations with Real Singapore Examples
ABSD Formula: Rate × Higher of (Purchase Price or Market Valuation)
Example 1: SC buys second condo, Tampines, S$1.1M (val S$1.15M).
ABSD = 20% × S$1.15M = S$230,000
BSD ~S$45,000
Total: S$275,000[1][4][5].
Example 2: SPR couple (2nd property) S$900k landed, Serangoon.
ABSD = 30% × S$900k = S$270,000[1].
| Scenario | Property Price | ABSD (SC 2nd) | Total Cash Needed (25% LTV + Duties) |
|---|---|---|---|
| Tampines Condo | S$1.1M | S$220k | S$437.5k |
| Punggol EC | S$1.4M | S$280k | S$560k |
| Orchard Landed | S$3M | S$600k | S$1.2M |
Use Homejourney Calculator
Plug into our mortgage calculator for instant totals.
8. ABSD Remissions, Exemptions, and Refunds
SC upgraders: Remission if sell within 6 months, but only if first property sold[1]. No remission for investors.
- Decoupling: Parents buy for child, claim family unit later.
- Trusts: 65% ABSD, no easy outs[1].
Disclaimer: Consult IRAS; Homejourney provides tools, not advice.
9. TDSR, MSR, and Loan Eligibility with ABSD
TDSR (55% of gross income) includes all debts; MSR (30% for HDB). ABSD cash need reduces CPF/equity for downpayment, shrinking loans[1].
Example: S$20k monthly income, existing S$3k mortgage. Post-ABSD S$1.2M loan: TDSR limits to S$11k total debt.
Compare rates on Homejourney: DBS 3.2%, UOCB 3.1%, HSBC 3.0% (SORA-based, 2026).
To understand rate context: SORA is the benchmark for most floating loans in Singapore, replacing SOR since 2024.
The chart below shows recent interest rate trends in Singapore:
As seen, 3M SORA hovered ~2.8-3.2% in late 2025, impacting second home ABSD financing costs[2].
10. Homejourney Tools for ABSD-Safe Financing
Homejourney builds trust with verified data:
- Compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB—multi-bank apps via Singpass.
- Eligibility calculator factors ABSD/TDSR.
- Property search budgets post-ABSD.
- Post-purchase: Aircon Services for maintenance.
Apply once, get offers from all partners—safe, transparent.
11. FAQ: ABSD Second Property Common Questions
Q: What's ABSD for my second HDB flat as SC?
A: 20% on higher of price/value. S$500k flat = S$100k[1].
Q: Can I finance ABSD?
A: No, must be cash/CPF. Use equity from first sale[1].
Q: Upgrading from HDB to condo—ABSD?
A: 0% if sell HDB first via contract. See Sell HDB Buy Private: Ultimate Upgrade Financing Guide | Homejourney [1].
Q: Joint with spouse (my 2nd, her 1st)?
A: 20% (your profile)[1].
Q: PR second property ABSD?
A: 30%[1].
Q: Refund if sell after buying second?
A: Possible for SC within 6 months, strict rules[1].
Q: How does ABSD affect my bank loan?
A: Reduces LTV to 75%, hits TDSR. Calculate on Homejourney.
Q: Investment condo ABSD?
A: 20% SC, but plan investment property tax long-term[1].
12. Next Steps with Homejourney
1. Calculate ABSD + loan on our calculator.
2. Compare ABSD second property financing from DBS/OCBC/UOB.
3. Search budgets via property search.
4. Apply multi-bank with Singpass—fast, secure.
Homejourney ensures safe transactions with verified info, feedback-driven tools, and priority on your security. Start your journey today for transparent additional property financing.
