ABSD Changes for Foreigners Buying Residential Property (Updated 2023)


On 15 Dec 2021, the Singapore government announced that it is raising Additional Buyer Stamp Duty (ABSD) rates and tightening loan-to-value (LTV) limits on residential property purchases, in an effort to cool the property market and keep price increases in line with economic fundamentals.

What does this mean if you are a foreigner planning to buy a new launch property in Singapore?

Changes to Additional Buyer’s Stamp Duty

While earlier property cooling measures in Dec 2021 and Sep 2022 had a “moderating effect” on the market, property prices in Q12023 still showed renewed signs of acceleration amid resilient demand from locals buying homes for owner-occupation.

So on 26 April 2023, the government announced that it is raising Additional Buyer Stamp Duty (ABSD) rates as a preemptive measure to alleviate the tight housing market for both owner-occupation and rental, as well as curb investment demand from foreigners and local investors.

These new ABSD Rates will apply to cases where the OTP is granted from 27 Apr onwards:

CitizenBuying 1st Residential PropertyBuying 2nd Residential PropertyBuying 3rd and Subsequent Residential Property
Foreigners buying any residential properties60% (up from 30%)60% (up from 30%)60% (up from 30%)

New laws from 9 May, 2022 with regards to residential properties transferred into a living trust:

Additional Buyer’s Stamp Duty (ABSD) of 35% will now apply on any transfer of residential property into a living trust. ABSD will be payable even if there is no identifiable beneficial owner at the time the residential property is transferred into a trust.

So this new change closes a loophole. This ABSD (Trust) is to be paid upfront when the transfer is made.

What is Loan to Value (LTV) limit?

LTV is the housing loan quantum a bank or financial institution is willing to offer as a percentage of the property’s valuation. LTV depends on whether this is your first, second or subsequent mortgage and your loan tenure. There has been no change for foreigners in the Dec 2021 update.

ParticularLTV Limits
No Outstanding Residential Property Loan55% (an absolute limit of 35 years on the tenure of all loans for residential property. This will apply to loans to both individual and non-individual borrowers)
Individuals Obtaining a 2nd Housing Loan45% or 25% (if the tenure exceeds 30 years or the loan period extends beyond the borrower’s retirement age of 65)
Individuals obtaining 3rd or subsequent housing loans35% or 15% if the loan tenure exceeds 30 years or the loan period extends beyond the borrower’s retirement age of 65
Non-individual borrowers15%

These new cooling measures mean that if you are a foreigner planning to buy a property in Singapore, you would have to pay at least 10% more in stamp duties as well.

Looking to buy a private property?

Let Ohmyhome’s smart data-matching technology MATCH you with the right home, according to your specific needs. Submit your preferences to us and our algorithm will filter all our available listings based on those, and we’ll WhatsApp them to you once we find a match. We’ll also send you relevant content that you can use for your research and inform your home buying decision, so you no longer have to spend hours searching online for the information that you need.

Experience seamless, fast and exceptional service from our Super Agents. Chat with us at the bottom, right-hand corner of the screen. Or WhatsApp us at 9755 1009 to get in touch.

While the Information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and Ohmyhome is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.

Subscribe to the property newsletter read by 350,000 homies

Get our finest insights sent straight to your inbox. Enter your best email.
Unsubscribe anytime.

Consult an expert for free!

Send us your details and we’ll be in touch within 15 min (daily 9am to 9pm GMT +8).

Our finest insights you'll be looking forward to receive.

Read by 200,000 Homies. Enter your best email below to join in.

Unsubscribe anytime.


Featured Blogs

Highlighting unique property views for every Singaporean