Singapore’s property industry is stepping up calls for calibrated policy adjustments ahead of Budget 2026, urging the government to ease the Additional Buyer’s Stamp Duty (ABSD) imposed on foreign purchasers and to modernise the executive condominium (EC) framework through revisions to income ceilings and loan-to-value caps. These requests, led prominently by PropNex and echoed by other market participants, are framed as technical refinements to existing cooling measures rather than wholesale deregulation, with the stated objective of sustaining demand in specific segments while preserving overall housing market stability.
Under the current regime, foreign buyers of residential property pay 60 per cent ABSD on the purchase price or valuation, whichever is higher, a rate introduced in April 2023 and maintained through 2026. Non-housing developer entities face a 65 per cent levy, and property-buying trusts are charged 65 per cent upfront, subject to remission if identifiable beneficiaries are confirmed within six months. Industry representatives highlight that, for a S$2 million non-landed unit, a foreigner would incur S$1.2 million in ABSD, S$64,600 in Buyer’s Stamp Duty on a tiered scale up to 4 per cent, and roughly S$6,500 in ancillary legal and valuation costs, bringing total stamp duties and related fees to about S$1.271 million on top of the purchase price. Foreign buyers are also constrained by LTV ratios that typically cap mortgages at 75 per cent, reinforcing the need for substantial equity and cash reserves. The government has underscored that these higher ABSD rates are part of a broader strategy to manage foreign and corporate investor activity and curb speculative demand.
Foreigners buying a S$2 million home may face about S$1.27 million in stamp duties and fees
PropNex has proposed that the ABSD rate for foreign non-permanent resident buyers be reduced to 30 per cent, particularly targeting non-landed homes in the Core Central Region. They have called for a specific 30 per cent ABSD rate on ultra-luxury CCR properties transacting above S$10 million, in order to stimulate high-end sales volumes without materially impacting mass-market affordability.
While officials credit the elevated ABSD with cooling speculative foreign demand, prioritising citizens and permanent residents and maintaining confidence through stable rules, the industry notes that bidding competition remains intense in prime districts 9, 10 and 11. Exemptions already exist for nationals of the United States and European Free Trade Association under free trade agreements, who enjoy citizen-equivalent stamp duty treatment.
In parallel, developers are pressing for modernisation of the EC framework. Foreigners today may only acquire EC units on the resale market after a 10‑year minimum occupation period, with pre‑privatisation sales restricted to Singapore citizens and permanent residents. This restriction persists even as older 2010s projects begin to privatise in 2026 without any signalled liberalisation of foreign ownership rules for new supply.
Market players instead focus on domestic eligibility parameters, calling for a review of EC income ceilings, which they argue have not kept pace with wage growth and price escalation. This has resulted in the exclusion of a growing share of upgraders from new EC launches that occupy the mid-tier segment between Housing Board flats and private condominiums. Executive Condominiums also remain subject to a five-year MOP before owners can sell on the open market or rent out the entire unit.
PropNex has urged the government to raise the income ceiling and simultaneously revisit loan-to-value limits for EC buyers. They contend that more flexible loan caps would support financing access amid elevated construction and land costs, align borrowing capacity with current price levels, and enhance take-up rates for upcoming EC projects, all while retaining the hybrid public-private character of the segment.
