Singapore Property: Will ABSD & Wait-Out Period Be Tweaked for Upgraders?
Singapore’s dynamic property market stands at a crucial juncture as real estate agencies table key policy recommendations ahead of the anticipated Budget 2026. Amidst a moderating housing landscape, calls are intensifying for a recalibration of existing cooling measures, particularly those impacting Singaporean upgraders and those transitioning between private and public housing. The proposed adjustments to the Additional Buyer’s Stamp Duty (ABSD) and the 15-month wait-out period are central to these discussions, aiming to ease financial burdens and facilitate smoother housing transitions for a significant segment of the population.
The biggest event shaping recent discourse in Singapore’s property sector, with the most profound impact on Singaporeans, revolves around these very suggestions. Major players like PropNex and ERA have submitted comprehensive wish lists to policymakers, advocating for targeted refinements to policies that directly affect local homebuyers. These proposals reflect a market that, while resilient, is experiencing a stabilization that some believe provides room for nuanced adjustments.
Easing the ABSD Hurdle for HDB Upgraders
A primary concern for many Singaporean families aspiring to upgrade from their Housing & Development Board (HDB) flats to private residential properties is the substantial upfront cash outlay required for the Additional Buyer’s Stamp Duty (ABSD). Under the current regime, a Singaporean household purchasing a second residential property faces a 20% ABSD rate on the purchase price or valuation, whichever is higher. While a remission for this ABSD is typically granted if the first property (HDB flat) is sold within six months of purchasing the second (private property), the initial payment can be a significant financial hurdle for many. For a S$2 million private property, this translates to S$400,000 that must be paid upfront before any remission.
Real estate agency ERA has specifically proposed a critical tweak to this policy. It advocates for Singaporean households moving from an HDB flat to a private home to be allowed to defer ABSD. This deferment would be contingent on them selling their HDB flat within a stipulated timeframe, typically six to nine months, after taking possession of their new private property. This grace period would alleviate the immediate financial strain, providing much-needed liquidity for renovation works and relocation. The suggestion draws parallels with existing provisions for HDB flat owners upgrading to another HDB flat or a new Executive Condominium (EC), where they can remain in their current homes without resorting to interim rental arrangements. This proposed change could significantly boost the mobility of Singaporean owner-occupiers within the housing market, potentially stimulating activity in the private segment without encouraging speculative buying, thereby strengthening Singapore real estate investment for genuine homeowners.
Reviewing the 15-Month Wait-Out Period for Downgraders
Another pivotal policy under intense scrutiny is the 15-month wait-out period. Introduced in September 2022 as a temporary cooling measure, this rule requires former and current private property owners to wait 15 months after selling their private property before they can purchase an unsubsidised HDB resale flat. The primary objective was to curb demand from cash-rich downgraders, thereby stabilising the HDB resale market, which had experienced robust price growth. Exceptions currently apply to seniors aged 55 and above who are buying a four-room or smaller resale flat.
Both PropNex and ERA have strongly recommended that this wait-out period be either reduced or entirely lifted. Their rationale is that the HDB resale market has shown signs of moderation, indicating that the policy’s objectives may have largely been met. Flash estimates for the fourth quarter of 2025 indicated that HDB resale prices remained flat quarter-on-quarter, marking the first instance of no change since the first quarter of 2020. Furthermore, HDB resale prices grew by an estimated 2.9% in 2025, a significant moderation from the 9.7% increase observed in 2024. This cooling trend, coupled with an anticipated increase in HDB resale flat supply from 2026 as more Build-To-Order (BTO) flats reach their five-year Minimum Occupation Period (MOP), presents a compelling case for reconsideration.
National Development Minister Chee Hong Tat has also hinted that a review of this wait-out requirement could occur sooner than the initially suggested timeframe of 2027 or 2028. Such a move would allow private homeowners to right-size more easily, providing greater flexibility in their housing decisions and potentially easing the transition for those seeking to divest private assets and move into public housing without prolonged waiting periods. This adjustment is expected to smooth housing transitions and support overall market fluidity in Singapore real estate investment.
Broader Market Context and Other Policy Recommendations
These specific proposals for upgraders and downgraders are part of a broader discussion on fine-tuning Singapore’s property policies. Real estate agencies are also advocating for a recalibration of the Additional Buyer’s Stamp Duty (ABSD) for foreign buyers, particularly for ultra-luxury non-landed private homes in the Core Central Region (CCR) valued at S$10 million and above. With the ABSD for foreign buyers doubled from 30% to 60% in April 2023, transactions in this segment have seen a notable decline, from an average of 80 per month to approximately 25 per month. Proposals suggest restoring the rate to 30% or a calibrated reduction, possibly with additional safeguards like extended Seller’s Stamp Duty (SSD) holding periods, to encourage liquidity in this niche market without affecting broader affordability. This could attract high-net-worth individuals, bolstering Singapore real estate investment in the luxury sector.
Furthermore, there are recommendations to improve the affordability of Executive Condominiums (ECs), which serve as a hybrid public-private housing option. Proposals include increasing the monthly household income ceiling for EC purchases, currently S$16,000, to S$18,000 or even S$20,000. This aims to broaden the pool of eligible buyers, given that new EC prices have risen significantly, ranging from S$1.3 million to S$1.8 million, making it challenging for middle-income households to afford them under existing limits.
The government’s commitment to expanding housing supply also forms a crucial backdrop to these policy discussions. Between 2025 and 2027, Singapore plans to launch 55,000 BTO flats and release over 25,000 private units through the Government Land Sales (GLS) programme. This sustained increase in supply is expected to support long-term affordability and meet demand, potentially creating a more stable environment for policy adjustments.
Outlook for Singaporean Homeowners and Investors
The ongoing discussions surrounding ABSD and the wait-out period signal a proactive approach to managing Singapore’s property market. If implemented, the proposed tweaks could significantly benefit Singaporean households by reducing financial barriers for upgraders and providing greater flexibility for those looking to right-size their homes. The moderation in HDB resale prices, coupled with an increased supply of both public and private housing, provides a conducive environment for policymakers to consider these targeted adjustments. These policy refinements, if enacted, would likely foster a more equitable and dynamic housing market, ensuring that Singapore real estate investment remains accessible and sustainable for its citizens while maintaining overall market stability.
