ABSD Stamp Duty Complete: Price Trends and Market Analysis (Singapore 2025)
ABSD Stamp Duty Complete: Price Trends and Market Analysis is about understanding how Singapore’s Additional Buyer’s Stamp Duty (ABSD) affects property prices, investment returns, and your home-buying strategy in 2025. In a market where cooling measures shape demand, knowing how ABSD Singapore works is now as important as knowing your loan eligibility.
At Homejourney, we see many buyers realise late in the process that additional buyer stamp duty can add hundreds of thousands to a purchase. This guide breaks down ABSD rates, recent cooling measures, price trends and tactical strategies so you can plan safely and avoid costly mistakes. It also connects back to our main pillar guide ABSD Stamp Duty Complete Guide 2025: Homejourney Safe Buyer Handbook for readers who want a full legal and procedural deep dive.
1. ABSD Singapore 2025: Key Facts and Why It Matters
Additional Buyer’s Stamp Duty (ABSD) is a tax on top of Buyer’s Stamp Duty (BSD) that applies when you buy residential property in Singapore, depending on your residency status and how many properties you already own.[3][2] It is calculated on the higher of the purchase price or market value, similar to BSD.[3][2] In real terms, this can change whether a second condo in Punggol, an investment unit in Geylang, or a CBD shoebox in Tanjong Pagar is financially viable.
The latest major ABSD changes took effect on 27 April 2023 and continue to apply in 2025.[3][2][4] The intent, as repeatedly stated by the government, is to pre‑emptively manage investment demand and keep housing affordable for owner-occupiers, especially Singapore citizens.[5][4] If you are a Singaporean couple upgrading from a 4-room HDB in Sengkang to a private condo in Serangoon, or a foreign professional eyeing a core central region (CCR) unit, ABSD is often the single largest upfront cost after your downpayment.
2. Current ABSD Rates and Cost Impact (2025)
According to IRAS and recent legal summaries, the current ABSD rates (for residential property purchases from 27 April 2023, still in force in 2025) are:[3][2][4]
- Singapore Citizens (SC): 0% on 1st property, 20% on 2nd, 30% on 3rd and subsequent properties.[2]
- Singapore Permanent Residents (PR): 5% on 1st property, 30% on 2nd, 35% on 3rd and subsequent properties.[2][3]
- Foreigners: 60% on any residential property.[2][4][5]
- Entities (companies, non-individuals): 65% on any residential property.[2][3][5]
- Housing developers: 35% + 5% non‑remittable ABSD, with potential remission subject to conditions.[3]
2.1 Quick Cost Illustration
Consider a S$1.8 million resale condo near Tan Kah Kee MRT (Bukit Timah), a common price point for a 3-bedder freehold unit:
- SC buying first property: ABSD 0% – pay only BSD.[2]
- SC buying second property: ABSD 20% = S$360,000 (on S$1.8m).[2]
- PR buying second property: ABSD 30% = S$540,000.[2]
- Foreigner buying any property: ABSD 60% = S$1,080,000.[2][5]
Because ABSD is charged on the higher of purchase price or market valuation, buyers in tightly held estates like Holland Village or Tiong Bahru sometimes get surprised if bank valuation comes in above negotiated price. Homejourney strongly recommends that you confirm the valuation and run your calculations before you sign the Option to Purchase.
3. How ABSD Has Shaped Singapore Property Price Trends
ABSD has become one of the main levers shaping residential price trends across segments and buyer types. Public data and market analysis from banks and consultancies consistently show three patterns since the April 2023 hike:[4][6]
- Foreign demand has shifted from mass and fringe units to ultra‑prime, “price-insensitive” purchases, as the 60% ABSD makes only trophy assets worthwhile for many foreign buyers.[4][5][6]
- Upgraders are more cautious about holding two properties concurrently, as carrying ABSD on a second property can severely constrain cashflow.[4][6]
- Local investors have re‑weighted towards smaller quantum units in outside central region (OCR) estates such as Sengkang, Pasir Ris and Choa Chu Kang, where total ticket size (and therefore ABSD amount) is more manageable.[4][6]
3.1 Price Resilience by Segment
Market coverage from outlets like The Straits Times and Business Times indicates that mass-market and city-fringe prices have stayed relatively resilient after each ABSD round, supported by strong local owner-occupier demand.[4][6]Straits Times Housing News In contrast, some high‑end CCR projects saw slower sales to foreigners after the 60% ABSD jump, even if headline prices did not collapse.[4][5]Business Times Property
From what we see on the ground at Homejourney, genuine home buyers in estates like Punggol, Bishan and Clementi tend to make decisions based more on schools, MRT access and layout than on short-term price fluctuations, while investors evaluating units in Geylang or Balestier are far more sensitive to net yield after ABSD.
3.2 Rental Market and Yield Pressures
Higher ABSD compresses rental yields because your acquisition cost increases significantly while rent may not rise at the same pace. For example, if a second property in Jurong West costs S$1 million and commands S$3,000 monthly rent (S$36,000 per year):
- Without ABSD, gross yield ≈ 3.6%.
- With ABSD 20% (SC second property, S$200,000 ABSD), effective capital outlay becomes S$1.2m and gross yield drops to ≈ 3.0%.
In a high-mortgage-rate environment (which MAS has repeatedly highlighted as a key risk), this yield compression can make leveraged investing far less attractive. That is why Homejourney encourages investors to model best- and worst-case scenarios using updated Bank Rates data before committing.
4. ABSD, BSD, LTV, TDSR: How the Rules Interlock
ABSD does not exist in isolation. It interacts with other Singapore housing rules, including Buyer’s Stamp Duty (BSD), Loan‑to‑Value (LTV) limits, Total Debt Servicing Ratio (TDSR) and, for HDB, Mortgage Servicing Ratio (MSR).
4.1 Buyer’s Stamp Duty (BSD) Refresher
BSD is payable on all property purchases based on a progressive structure.[2][7] For residential properties, current marginal BSD rates are:[2]
- 1% on first S$180,000
- 2% on next S$180,000
- 3% on next S$640,000
- 4% on next S$500,000
- 5% on next S$1,500,000
- 6% on amount exceeding S$3,000,000
This is separate from ABSD, but both are computed on the higher of price or market value.[2][3]
4.2 LTV Limits, TDSR and MSR
MAS caps how much you can borrow via Loan‑to‑Value limits and debt servicing ratios. In simplified terms:
- LTV for banks is typically up to 75% for borrowers with no outstanding housing loans, and lower if you already have a housing loan (exact limits depend on tenure and age).EdgeProp Property News
- TDSR limits total monthly debt obligations (including mortgage, car loans, credit cards) to 55% of gross monthly income.
- MSR applies to HDB and ECs, capping housing instalments at 30% of gross monthly income.
