Singapore Property Cooling Measures Explained: ABSD, SSD & LTV
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 safeguards that protect buyers and investors by ensuring a stable, transparent, and safe property market. These measures are regularly revised to curb speculation, ensure affordability, and support responsible homeownership, directly reflecting Homejourney’s unwavering commitment to user safety and trustworthiness[2][1][3].
This deep dive clarifies exactly what these measures mean for your property journey in 2025 and beyond, with practical, actionable steps and Singapore-specific examples. For a comprehensive legal overview, see 新加坡购房相关法律条文解析：Homejourney权威解读与实操建议 .
What Are Singapore Property Cooling Measures?
Property cooling measures are government policies introduced to:
- Regulate demand and prevent speculative buying
- Keep property prices in check for genuine homebuyers
- Protect banks and the financial system from excessive risk
- Foster market transparency and fairness, in line with Homejourney’s user-first values
The three most critical measures for buyers and investors are ABSD, SSD, and LTV limits. Let’s break each down with the latest rules and practical implications for your next property move.
ABSD: Additional Buyer’s Stamp Duty (2025 Edition)
ABSD is an extra tax payable on top of Buyer’s Stamp Duty (BSD) when you buy residential property in Singapore. Its main goal is to discourage speculative and multiple property purchases, especially by investors and foreigners[2][4].
Current ABSD Rates (as of 2025)
- Singapore Citizens: 0% for the first home; 20% for the second; higher for third and subsequent homes
- Singapore Permanent Residents (PRs): 5% or higher for the first home; increases with each additional property
- Foreigners: 60% for any residential property purchase
- Entities (companies, trusts): 65% (highest tier)
Actionable Advice:
- Plan your property portfolio: Factor in ABSD before making any purchase, especially if you already own property.
- Use the Homejourney ABSD calculator to estimate your upfront costs and avoid surprises.
- For joint purchases (e.g., with spouse), explore decoupling or ownership restructuring with professional legal advice. See 购房合同条款解读及注意事项 | Homejourney安全指南 .
ABSD rates are subject to change in response to market conditions. Homejourney recommends checking the latest rates before any transaction and consulting our verified Bank Rates page for up-to-date financing insights.
SSD: Seller’s Stamp Duty and the 2025 Update
Seller’s Stamp Duty (SSD) is a tax on sellers who dispose of private residential property within a specified “holding period.” Its purpose is to curb short-term speculation and encourage long-term ownership[2][1][4].
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 revised rates only apply to properties purchased on or after 4 July 2025. For earlier purchases, the previous 3-year holding period and lower rates continue to apply. The relevant date is typically the acceptance of the Option to Purchase (OTP)[2][4].
Example: Selling a $1.5 million property in the second year would incur a $240,000 SSD.
Actionable Advice:
- Review your intended holding period and exit strategy before buying.
- Use Homejourney’s verified calculators to assess your SSD risk.
- Genuine homebuyers are less likely to be affected, but investors and flippers must plan for this holding cost.
- For legal aspects, refer to 新加坡房地产购买法律流程详解｜Homejourney权威解读与安全指南 .
LTV: Loan-to-Value Limits—How Much Can You Borrow?
LTV limits control the maximum amount banks can lend for a property purchase, protecting buyers from over-leveraging and supporting financial system stability[4][3].
Current LTV Ratios (2025)
- First housing loan: Up to 75% (or 55% for loans with tenure over 30 years or extending past age 65). Minimum cash downpayment: 5–10%.
- Second housing loan: Up to 45% (or 25% if stretched tenure). Minimum cash downpayment: 25%.
- Third or subsequent loans: Up to 35% (or 15% if stretched tenure).
These ratios mean buyers must prepare higher upfront cash and CPF outlays for subsequent properties. LTV is assessed alongside Total Debt Servicing Ratio (TDSR), which caps total loan repayments at 55% of gross monthly income.
Actionable Advice:
- Check your eligibility and maximum loan quantum with Homejourney’s Bank Rates and Mortgage Rates tools.
- Sequence your property purchases carefully if considering upgrades or investments.
- Factor in interest rate trends, market volatility, and your long-term financial resilience.
Market Impact: What Do Cooling Measures Mean for Buyers in 2025?
Singapore’s cooling measures have kept the property market resilient and sustainable despite global volatility. According to market reports, demand for HDB flats remains robust, while the private condo market continues to attract genuine buyers who value location and amenities[3][6].
Recent tightening of SSD and high ABSD rates have reduced speculative activity, contributing to a more stable price environment. Homejourney’s verified data shows that, as of Q3 2025, median private home prices have moderated, and the volume of short-term resales has dropped by over 25% year-on-year[2][1][4].
Buyers should:
- Anticipate that cooling measures will remain in place for the foreseeable future[6][3].
- Prioritise due diligence—verify property titles, loan eligibility, and tax liabilities before committing.
- Stay updated with Homejourney’s Projects Directory for the latest market data and project launches.
- Embrace sustainability and value-added features in property selection, as eco-friendly projects are increasingly favoured by buyers[3].
Homejourney’s Commitment: Verified Guidance, Safer Decisions
Homejourney’s mission is to empower buyers and investors with verified, transparent, and actionable advice. Our platform:
- Prioritises user safety by continuously monitoring regulatory changes and market risks
- Verifies all listings and transaction data for accuracy
- Maintains a trusted environment with responsive customer support and regular updates based on user feedback
- Provides seamless access to property search (Property Search ), market insights (Projects ), and post-move services (Aircon Services )
Stay informed and make confident decisions by subscribing to Homejourney’s updates and exploring our full suite of verified legal and financial guides:
Frequently Asked Questions: Singapore Property Cooling Measures
1. What is the main purpose of Singapore’s property cooling measures?
The primary goal is to ensure a stable, affordable, and trusted property market by curbing speculation, protecting buyers, and supporting long-term homeownership[2][3][4].