Singapore Cooling Measures 2025
A full rundown of Singapore's property cooling measures — ABSD, TDSR, MSR, LTV limits, Sellers Stamp Duty, and how they affect buyers and investors.
📌 Key Takeaways
- 📈 Latest round: 27 April 2023 — substantial ABSD hikes
- 💰 Foreigner ABSD: 60% (up from 30%) — effectively stalled foreign buying
- 🏠 Citizen ABSD: 0% on 1st, 20% on 2nd, 30% on 3rd+ property
- 📊 TDSR: 55% cap on total debt obligations vs income
- 🏛️ SSD: Up to 12% tax if you sell within 1 year of purchase
A Brief History — Why Cooling Measures Exist
Singapore has been applying cooling measures since 2009. The government's goal is simple: keep property prices from running too far ahead of economic fundamentals, and make sure Singaporeans can afford homes. Every time prices spike, the government adjusts the dials.
The four biggest rounds of cooling measures came in:
ABSD Rates — The Big One
Additional Buyer's Stamp Duty is the biggest and most talked-about cooling measure. Here are the current rates:
| Buyer Profile | 1st Property | 2nd Property | 3rd+ |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Singapore PR | 5% | 30% | 35% |
| Foreigner | 60% | ||
| Entity (Company) | 65% | ||
Source: IRAS, "ABSD Rates from 27 Apr 2023," iras.gov.sg (2025).
TDSR — The 55% Rule
Total Debt Servicing Ratio (TDSR) is the rule that limits how much you can borrow. It says your total monthly debt payments cannot exceed 55% of your gross monthly income.
How It Works in Practice
Your gross monthly income: S$10,000
TDSR cap (55%): S$5,500 max total debt payments
Existing debts (car loan + credit card): S$800/month
Remaining for mortgage: S$4,700/month
What counts as "debt"? Home loans, car loans, personal loans, study loans, credit card revolving balances, and even the minimum monthly repayment on your credit cards. Basically anything that's not your phone bill or Netflix subscription.
Source: MAS, "TDSR Framework," mas.gov.sg (2025).
LTV Limits and MSR — More Borrowing Constraints
Loan-to-Value (LTV) limits control the maximum loan amount relative to the property price:
| Loan Type | Max LTV |
|---|---|
| HDB Concessionary Loan | 80% |
| Bank Loan (private property, first loan) | 75% |
| Bank Loan (second property) | 45% |
| Bank Loan (third+ property) | 35% |
Mortgage Servicing Ratio (MSR) is another cap that only applies to HDB flats and executive condos. Your monthly mortgage payments can't exceed 30% of your gross monthly income, regardless of TDSR.
Source: MAS, "Property Cooling Measures," mas.gov.sg (2025).
Seller's Stamp Duty (SSD)
If you buy a property and sell it within a short period, you'll be hit with SSD. This is designed to discourage short-term flipping:
| Holding Period | SSD Rate |
|---|---|
| Sold within 1 year | 12% |
| Sold in 2nd year | 8% |
| Sold in 3rd year | 4% |
| After 3 years | 0% |
Source: IRAS, "Seller's Stamp Duty," iras.gov.sg (2025).
How the Measures Have Affected the Market
Foreign Buyers Have All but Disappeared
The 60% ABSD effectively ended foreign residential buying overnight. In Q2 2023, foreign condo purchases dropped by over 70% compared to the previous quarter. Developers who relied on foreign demand have had to redesign their marketing strategy.
HDB Resale Market Remains Active
For Singaporeans buying HDB resale flats, the impact has been minimal since ABSD doesn't apply to first-timer citizens. The generous CPF grants have kept demand stable, and HDB resale prices have continued to grow at a moderate pace.
Private Condo Market — Mixed Signals
The private condo market has slowed but not crashed. Singapore citizens still buy their first property at 0% ABSD, and upgraders are willing to pay 20% ABSD on a second property. Prices have stabilized rather than fallen.
💡 Bottom Line
Singapore's cooling measures are among the most comprehensive in the world — ABSD, TDSR, MSR, LTV, and SSD all work together to keep the property market stable. For first-time home buyers, they're mostly irrelevant (you pay 0% ABSD). For investors and foreigners, they're a major barrier. The good news? These measures are designed to be adjusted — if the market cools enough, the government may ease them in future. But no one should bet on that timeline.