Singapore Property Cooling Measures Explained: ABSD, SSD & LTV | Homejourney

Singapore Property Cooling Measures: Direct Answers for Today’s Buyers

Singapore’s property cooling measures—including Additional Buyer’s Stamp Duty (ABSD), Seller’s Stamp Duty (SSD), and Loan-to-Value (LTV) limits—are regulatory tools designed to ensure a sustainable, safe, and trusted property market for all. Homejourney, committed to user safety and transparency, breaks down these measures so buyers and investors can make confident, well-informed decisions.

These rules directly impact the cost, eligibility, and timing of property transactions in Singapore. They are crucial for preventing speculation, protecting genuine homebuyers, and promoting long-term market stability. Understanding them is key to navigating your property journey safely—whether buying your first HDB flat, upgrading, or investing in private property.

What Are Singapore’s Key Cooling Measures?

Cooling measures are government interventions that regulate demand, affordability, and speculative activity in the property market. The three most impactful for homebuyers and investors are:

• Additional Buyer’s Stamp Duty (ABSD): An extra stamp duty on top of standard Buyer’s Stamp Duty, primarily affecting second and subsequent property purchases, as well as purchases by foreigners and entities.
• Seller’s Stamp Duty (SSD): A tax on sellers who dispose of residential property within a short holding period, designed to curb short-term flipping.
• Loan-to-Value (LTV) Limits: Caps on the maximum loan amount relative to a property’s value, impacting how much buyers can borrow and thus their upfront cash or CPF requirements.

These measures are regularly adjusted in response to market conditions, with the most recent SSD changes taking effect from 4 July 2025, signaling the government’s continued commitment to market stability and user protection[2][4].

ABSD: Additional Buyer’s Stamp Duty Explained

ABSD was introduced in 2011 and has since been revised multiple times. It is a key tool to moderate demand, especially from investors and foreign buyers. The rates you pay depend on your residency status and the number of residential properties you own.

Key ABSD facts:

• Singapore Citizens: No ABSD for the first residential property. ABSD applies for the second (typically 20%) and higher for the third and subsequent properties.
• Singapore Permanent Residents (PRs): ABSD applies from the first property (5% or higher), increasing with each subsequent purchase.
• Foreigners: ABSD applies to all residential property purchases (typically 60% as of latest revision).
• Entities (companies, trusts): Highest ABSD rates apply, generally 65%.

For a $2 million private property, a Singapore Citizen buying a second home would pay $400,000 in ABSD upfront. This significantly raises the entry cost and is non-refundable, so buyers must evaluate their long-term plans carefully. Homejourney recommends verifying your residency status, property count, and eligibility before making any offer, as ABSD is calculated based on the date you sign the Option to Purchase[4].

SSD: Seller’s Stamp Duty and the 2025 Update

The Seller’s Stamp Duty (SSD) discourages short-term speculation by imposing a tax on sellers who dispose of private residential property within a specified “holding period.” On 4 July 2025, the government increased the SSD holding period back to four years and raised rates for properties acquired on or after this date[2][1].

Current SSD rates (as of July 2025):

• Sold within 1 year: 20% of selling price or market value (whichever is higher)
• Sold in 2nd year: 16%
• Sold in 3rd year: 12%
• Sold in 4th year: 8%
• Sold after 4 years: No SSD payable

These revisions only affect properties purchased on or after 4 July 2025. For earlier purchases, the previous 3-year holding period and lower rates apply. The relevant date is usually the acceptance of the Option to Purchase (OTP)[2].

For example, selling a $1.5 million property within the 2nd year of purchase would now incur a $240,000 SSD. Homejourney’s advice: always review your intended holding period and exit strategy before buying, and use our verified calculators to assess your risk. This measure is targeted at speculative flippers, not genuine homebuyers[1][2].

LTV: Loan-to-Value Limits and Your Financing

LTV limits dictate how much you can borrow, directly affecting your cash and CPF outlay. The stricter the LTV, the higher your upfront payment.

Key LTV rules:

• HDB Loans: Up to 80% of property value (if eligible), with the remainder paid in cash or CPF. Eligibility is subject to income ceiling and other criteria, which may be tightened in future cooling measures[3].
• Bank Loans: Up to 75% LTV for the first housing loan. For those with existing loans, the LTV limit drops to 45% (second loan) and 35% (third and subsequent loans).
• Minimum cash downpayment: At least 5% (HDB) or 5-25% (private) must be paid in cash, with the rest via CPF.

LTV limits are enforced to ensure buyers are financially resilient and to prevent over-leveraging. Homejourney encourages users to verify their loan eligibility, review all documentation, and consult with trusted financial advisors—our platform’s verification tools and customer service are designed to guide you safely through this process[4].

Actionable Steps for Safe, Confident Decisions

1. Check your eligibility and property count: ABSD rates and LTV limits depend on these factors. Use Homejourney’s verified calculators and consult our team for clarity.
2. Plan your holding period: If you may need to sell within four years, factor in SSD costs. Consider your job stability, family plans, and investment horizon.
3. Assess your financing: