Singapore is a bustling city-state that boasts one of the most robust real estate markets in the world.
For many Singaporeans, owning a property is not just a symbol of financial stability, but also a smart investment for the future.
If you’re thinking about buying your second property in Singapore, there are several factors you should consider before taking the leap. From navigating the regulatory landscape to understanding the current market trends, making a well-informed decision can help you achieve your long-term financial goals.
In this article, we’ll explore some key considerations for buying your second property in Singapore, so you can make a confident and informed decision.
Second Property ABSD
If you’re planning to buy a second property in Singapore, it’s important to understand the Additional Buyer’s Stamp Duty (ABSD) and how it can affect your purchasing decision and how much downpayment you need to buy a condo.
What is ABSD?
The Additional Buyer’s Stamp Duty (ABSD) is a tax that is levied on top of the Buyer’s Stamp Duty (BSD) in Singapore, a tax that buyers have to pay when they purchase a property, which is computed based on the purchase price or the market value of the property, whichever is higher. ABSD is an additional tax that applies to certain groups of buyers who purchase residential properties, such as those who are buying their second or subsequent property.
The purpose of the ABSD is to discourage speculative buying and reduce demand from buyers who already own properties, thereby cooling down the property market and ensuring that housing remains affordable for the majority of Singaporeans.
ABSD Rates 2023
The ABSD rates vary depending on the residency status of the buyer and the number of properties owned, with higher rates applied to non-citizens and buyers who already own multiple properties.
Here are the prevailing ABSD rates (last updated on 27 April 2023) in Singapore for each residential status (SC, SPR, Foreigner, etc):
|Buying first property||0%|
|Buying second property||20%|
|Buying third & subsequent property||30%|
|Buying first property||5%|
|Buying second property||30%|
|Buying third & subsequent property||35%|
|Foreigners buying any property||60%|
|Entities (companies or associations) buying any property||65%|
|Trustees for any residential property||65%|
|Housing developers for any residential property||35% (additional 5% if the entity is a housing developer; non-remittable)|
Calculating the Additional Buyer’s Stamp Duty (ABSD) can be a complex process, as it depends on various factors such as the buyer’s residency status, the number of properties owned, and the purchase price of the property. To help readers make informed decisions, several ABSD calculators are available online that can estimate the amount of ABSD they will need to pay.
Here’s an updated ABSD calculator that you can use before buying second property in Singapore.