Singapore Property Cooling Measures: Complete Guide for Foreign Buyers

Singapore’s property cooling measures are government policies designed to maintain a stable and sustainable real estate market, prevent excessive speculation, and ensure affordability for long-term homeowners.

For foreign buyers, understanding these measures is critical, as they directly affect taxes, financing, and investment strategy.

What Are Singapore Property Cooling Measures?

Cooling measures are regulations introduced by the Singapore government to:

• Curb speculative property purchases

• Manage rapid price increases

• Encourage long-term ownership

• Protect financial system stability

  
  

They mainly policy :

• Property taxes (ABSD, SSD)

• Loan limits (LTV)

• Loan tenure and affordability rules (TDSR)

Brief History of Singapore Property Cooling Measures

Singapore began introducing cooling measures in 2009, following rapid price growth after the Global Financial Crisis.

Key Milestones:

• 2009–2013: Initial measures targeting speculation (ABSD, SSD introduced)

• 2018: Sharp ABSD increase for foreigners

• 2021–2023: Tightening of loan limits and major ABSD hike

• 2023 (Latest major update):

  
  

  • Foreigners’ ABSD raised to 60% except USA and FTA member

  • Stronger deterrent against short-term and speculative buying

    
    

📌 These measures are adjusted periodically based on market conditions.

1.Additional Buyer’s Stamp Duty (ABSD)

ABSD is an extra tax imposed on top of Buyer’s Stamp Duty (BSD), based on:

• Buyer’s residency status

• Number of properties owned

Current ABSD Rates (Residential Property):

Buyer Profile	ABSD Rate
Singapore Citizen (1st property)	0%
Singapore Permanent Resident (1st property)	5%
Foreign Buyer (Non-FTA)	60%
Foreign Buyer (FTA Countries*)	0%

📌 FTA countries with ABSD exemption: USA, Norway, Switzerland, Iceland, Liechtenstein

ABSD Calculation Example:

Property price- SGD 2,000,000

• Non-FTA foreign buyer: ABSD = 2,000,000 × 60% = SGD 1,200,000

• US citizen (FTA exemption): ABSD = SGD 0

• ABSD is payable within 14 days of signing the Sale & Purchase Agreement.

2.Loan-to-Value Ratio (LTV)

LTV limits the maximum loan amount a buyer can take relative to the property price.

Current LTV Rules (Bank Loan)

Buyer Situation	Maximum LTV
First housing loan	75%
Second housing loan	45%
Loan tenure > 30 years	55%
Loan tenure > 30 years (2nd loan)	35%

LTV Calculation Example

Property price: SGD 1,800,000Max LTV (75%):

• Loan = 1,350,000

• Cash + CPF required = 450,000

  
  

📌 Foreign buyers must use cash, as CPF is only for Singapore citizens/PRs.

3.Total Debt Servicing Ratio (TDSR)

TDSR ensures borrowers do not overextend financially.Monthly debt obligations must not exceed 55% of gross monthly income.

TDSR Calculation Example:

• Monthly income: SGD 15,000

• Max debt allowed: 15,000 × 55% = SGD 8,250

If:

• Car loan = 1,200

• Credit card debt = 500

• Remaining mortgage allowance:8,250 – 1,700 = SGD 6,550

  
  

📌 Applies to all buyers, including foreigners. Final amount base on bank mortgages.

3.Seller’s Stamp Duty (SSD)

SSD discourages short-term property flipping by taxing early sales.

SSD Rates (Residential Property) selling period:

Holding Period	SSD Rate
First year	12%
2 years	8%
3 years	4%
4 years	0%

SSD Calculation Example:

• Selling price: SGD 1,600,000

• Sold on 2 years SSD = 1,600,000 × 8% = SGD 128,000

Key Takeaways for Foreign Property Investors

• FTA and US citizen benefit ABSD exemption

• Cooling measures are policy-driven, not permanent

• ABSD is the biggest cost driver for foreigners

• SSD penalizes short-term resale strategies

• Long-term holding aligns best with Singapore regulations

• Professional guidance helps optimize entry timing and structure

About Me: Singapore Property Investment Services for Foreign Buyers

I am a ERA Singapore licensed real estate professional in Singapore, specializing in helping foreign investors and US citizens navigate the Singapore property market. With extensive experience in residential property investments, I provide clear guidance on tax planning, ABSD exemptions, financing, and new launch or resale condominium purchases.

My services include:

• Market advisory for new launch and resale condos

• Assistance with taxes, ABSD eligibility, and stamp duty calculations

• Mortgage and financing coordination with local banks

• End-to-end transaction support, from property selection to key collection

  
  

With a focus on making property investment simple and compliant, I ensure every client makes informed decisions with confidence.

Contact me today to explore your Singapore property investment opportunities.

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