Is Singapore property still worth buying with 60% ABSD? For many foreigners and Singaporeans eyeing additional properties, this is now the key question. With Additional Buyer’s Stamp Duty (ABSD) as high as 60% for some foreign buyers, a miscalculated purchase can easily wipe out years of returns.
As a platform built around safety, verification, and user-first advice, Homejourney has put together this definitive 2025 guide to help you deeply understand whether ABSD is worth it, how to calculate the investment return after ABSD, and when paying 60% ABSD may still make financial sense.
This guide is written from the perspective of someone who has walked the ground – from older walk-up apartments around Tiong Bahru and Joo Chiat to new launches in Lentor and Tengah – and has seen how ABSD shapes real decisions for real people, from expat families renting in River Valley to investors looking at CCR luxury condominiums.
Table of Contents
- 1. Understanding 60% ABSD in Singapore (2025–2026 Rules)
- 2. Singapore Property Market Outlook 2024–2026: Is Growth Still There?
- 3. Is 60% ABSD Worth It? Core Financial Logic & Scenarios
- 4. Step-by-Step: How to Evaluate if a Property Is Worth Buying with ABSD
- 5. Singapore Regulations That Shape Your ABSD & Returns
- 6. Foreigner-Focused Analysis: Singapore Property with 60% ABSD
- 7. Numbers Deep Dive: Investment Return After ABSD (Worked Examples)
- 8. Common Mistakes with ABSD and How to Avoid Them
- 9. Practical Buying Process & Documentation Checklist
- 10. When ABSD May Still Be Worth Paying – and When to Walk Away
- FAQs: ABSD, Foreign Buyers, and Investment Returns
- Next Steps: How Homejourney Keeps Your Property Journey Safe
1. Understanding 60% ABSD in Singapore (2025–2026 Rules)
1.1 What is ABSD – in plain language
Additional Buyer’s Stamp Duty (ABSD) is a tax on top of the standard Buyer’s Stamp Duty (BSD) that certain buyers must pay when they purchase residential property in Singapore. It is imposed based on your residency status and how many residential properties you already own.
ABSD applies to both new launches and resale properties and is payable within 14 days of signing the Sale & Purchase Agreement or exercising the Option to Purchase (for local instruments). Data and rates are published by the Inland Revenue Authority of Singapore (IRAS) and updated after each cooling measure round.
1.2 Current ABSD rates (2025–2026 snapshot)
Based on the latest cooling measures (effective 2023 onwards, still in force as of 2025), foreigners buying any residential property in Singapore generally face an ABSD rate of up to 60% of the purchase price or market value, whichever is higher.[1][3]
Singapore Citizens and Permanent Residents (PRs) pay lower ABSD on second and subsequent properties, while some nationalities and treaties may enjoy reduced or zero ABSD on their first property (e.g. certain FTA partners). Always verify the latest IRAS table before committing.
*Exact rates may change. Always confirm on IRAS’ official ABSD page and with your conveyancing lawyer.
1.3 What does “60% ABSD” really mean in dollar terms?
If you buy a S$2 million private condo unit in the Core Central Region (CCR) as a foreigner subject to 60% ABSD, that is an additional S$1.2 million in tax upfront, on top of BSD and legal fees. In other words, you are effectively investing S$3.2 million to own a S$2 million asset.
This is why the key question is not simply “is ABSD worth it?” but “is the total return on S$3.2 million capital – after taxes and costs – attractive versus my alternatives?”
1.4 ABSD vs BSD – don’t confuse them
Buyer’s Stamp Duty (BSD) is payable by almost all buyers and is tiered based on property price, regardless of your nationality. ABSD is on top of BSD and only applies based on profile and property count.
For a detailed breakdown and calculator, you can refer to Homejourney’s guide: and ABSD Stamp Duty Calculator & Guide 2025 Singapore | Homejourney .
2. Singapore Property Market Outlook 2024–2026: Is Growth Still There?
2.1 Price trends and returns – what recent data shows
According to recent URA data, private residential prices continued to rise modestly into 2025, with year-on-year growth in the low- to mid-single digits despite multiple cooling measures.[1][3] Analysts from major consultancies expect private home prices to stabilise, projecting growth of around 3%–5% annually for 2025 if economic conditions hold steady.[3][1]
HDB resale prices have also remained resilient, supported by strong upgrader demand and limited new supply in mature estates.[1] For you as a buyer, this means Singapore property still offers steady – though not explosive – capital appreciation potential.
2.2 Why Singapore property remains attractive globally
Even with high ABSD, foreign capital still flows into Singapore housing because of:
- Political and legal stability – Strong rule of law and predictable policy-making.
- Limited land supply – URA’s strict planning and controlled GLS (Government Land Sales) pipeline support long-term values.[1][4]
- Global wealth hub – High-net-worth families setting up family offices and bases in Singapore for tax and lifestyle reasons.[5][7]
- Strong rental demand – From expat professionals, new PRs, and local households delaying purchase, especially in city-fringe and popular school zones.[1][8]
Technavio forecasts the Singapore real estate market to grow at about 4.6% CAGR from 2024–2029, with the residential segment remaining significant.[4]
2.3 Insider view: different neighbourhoods, different dynamics
From walking projects in places like Lentor, Dairy Farm and Tampines North, you notice a clear pattern: Outside Central Region (OCR) family-sized units near MRT lines and primary schools still enjoy very healthy demand, while some high-end CCR units face slower absorption unless they are ultra-prime with unique attributes.
On the ground, resale viewings in well-connected heartland estates such as Bishan, Serangoon and Queenstown often attract serious upgraders with strong CPF balances, even when asking prices are firm. This supports price resilience even when transaction volumes moderate.
3. Is 60% ABSD Worth It? Core Financial Logic & Scenarios
3.1 The core formula: investment return after ABSD
To decide whether ABSD is worth it, especially at 60%, you must look at the net investment return after ABSD over your intended holding period. At a simplified level:
Effective total cost = Purchase price + BSD + ABSD + other acquisition costs (legal, loan fees, agent fees if any)
Total return = Net rental income over holding period + Net sale proceeds (after agent fees, legal, seller’s stamp duty if applicable)
Investment return after ABSD = (Total return – Effective total cost) ÷ Effective total cost
When ABSD is 60%, it dominates your acquisition cost structure. For many buyers, the key question is: “Can my rental yield and capital appreciation over 10–20 years compensate for a 60% tax hit upfront?”
3.2 Quick diagnostic: when 60% ABSD is almost never worth it
60% ABSD is usually not worth paying if:
- You plan to hold the property for a short period (e.g. < 7–10 years).
- You are buying in an area with modest capital appreciation prospects (e.g. oversupplied, far from MRT, or weak tenant profile).
- You are highly leveraged and vulnerable to interest rate increases and rental vacancies.
- You are purely chasing investment returns, not lifestyle, residency, or family needs.
In such scenarios, conservative modelling typically shows better risk-adjusted returns in alternative assets or in lower-ABSD markets.
3.3 When paying 60% ABSD can still be rational
There are niche situations where 60% ABSD may still be defensible:
- Ultra-high-net-worth buyers – For whom capital preservation, asset diversification, or a multi-generational Singapore base outweighs pure ROI calculations.
- Strategic family needs – For example, securing a specific address within 1km of a top primary school in Bukit Timah or Marine Parade for multiple children over many years.
- Very long holding horizons – 20+ years, where compounding capital growth and SGD strength against home currency may offset the upfront tax.
- Tax or succession planning – Where the buyer’s global tax picture makes a Singapore asset attractive despite high entry cost (always seek professional tax advice).
In these cases, the decision is not just financial; it is also about lifestyle, long-term planning, and risk diversification.
4. Step-by-Step: How to Evaluate if a Property Is Worth Buying with ABSD
4.1 A simple decision framework
You can use this five-step framework to decide if a property is worth buying with 60% ABSD (or any ABSD level):
- Confirm your ABSD profile – Determine your residency status, property count, and if any treaty or exception applies.
- Estimate your effective total cost – Include ABSD, BSD, legal fees, loan fees, and renovation.
- Project realistic rental & capital growth – Based on district, property type, and URA/HDB data.
- Run net return scenarios – Best, base, and worst case over your actual holding horizon.
- Stress test your finances – Check affordability under higher interest rates and potential vacancy.
Homejourney’s verified Property Search and Projects Directory pages make it easier to compare realistic price ranges and project-specific details before you even engage an agent.
4.2 Estimating your ABSD, BSD, and financing
To compute ABSD and BSD accurately for 2025–2026 rules, you can:
- Use Homejourney’s detailed ABSD calculators: ABSD Stamp Duty Calculator & Guide 2025 | Homejourney and ABSD Stamp Duty Calculator & Guide 2025 Singapore | Homejourney .
- Refer to the IRAS website for the official latest ABSD and BSD tables.
- Check loan packages and interest rates via Homejourney’s Bank Rates or Mortgage Rates tools, which aggregate verified offers from multiple banks.
Financing calculations must comply with MAS’ Loan-to-Value (LTV) limits and Total Debt Servicing Ratio (TDSR) rules, which we break down later in this guide.
4.3 Location and property-type filters that matter
Before you run numbers in detail, narrow your options using practical filters:
- Transport connectivity – Walking distance to MRT (typically < 8–10 minutes from exit) or major bus interchanges is critical for both rental and resale demand.
- School proximity – Within 1km of popular schools (e.g. Nanyang, Tao Nan, Rosyth, Henry Park) tends to support values.
- Tenant profile – CBD-fringe condos in Tanjong Pagar, River Valley, Farrer Park, and Paya Lebar often attract white-collar tenants; industrial fringe areas may lag.
- Age and maintenance – Older condos in areas like Holland or Novena can have strong land value but higher maintenance and upcoming major works.
These are the factors you literally see when walking the estate – traffic noise along major roads like PIE or ECP, lack of sheltered walkways, or under-maintained common facilities – all of which tenants and future buyers will quietly price in.
