Additional Buyer's Stamp Duty (ABSD) is Singapore's primary demand-side cooling measure. For Singapore Citizens upgrading from HDB to private property, understanding exactly how ABSD applies is critical.
Current ABSD Rates For Singapore Citizens
No ABSD on first residential property. 20% on second. 30% on third and subsequent. On a $1.8 million second property, the ABSD due would be $360,000 — payable in cash, not CPF.
The Remission For Married Couples
Singapore Citizens who buy a second residential property while still owning an HDB flat can apply for ABSD remission, provided the HDB is sold within 6 months of the private property purchase. If completed within this window, the ABSD paid upfront is refunded in full.
Planning Implications
For most upgraders, the cleaner path is to sell the HDB first, eliminating ABSD liability entirely — since you are buying your next property as a first property once the HDB sale is completed. Buying first is appropriate when you have strong cash reserves, high confidence in your HDB's saleability, and a specific property you'd regret missing.