What is the ABSD for foreigners buying property in Singapore in 2026?

Foreigners (non-FTA nationals) pay 60% ABSD on all residential property purchases in Singapore. This rate has applied since April 27, 2023. Nationals of countries with Free Trade Agreements with Singapore -- specifically the USA, Switzerland, Norway, Iceland, and Liechtenstein -- are treated as Singapore Citizens for ABSD purposes and pay 0% on their first residential property.

Are there Singapore properties foreigners can buy without 60% ABSD?

Yes. ABSD only applies to residential properties. Commercial properties (offices, shophouses, retail) and industrial properties (warehouses, factories, light industrial units) are not subject to ABSD at all -- foreigners and Singaporeans pay the same BSD on these. Shophouses with commercial-only zoning in Districts 1–8 are a popular alternative for foreign buyers seeking Singapore asset exposure without ABSD.

All insights

Foreign Buyer 60% ABSD: Which Property Types Are Still Worth It?

By Winfred Quek · CEA R073319H · 9-minute read · Last reviewed May 2026

Quick answer: Non-FTA foreigners pay 60% ABSD on all Singapore residential purchases $1.2M extra on a $2M condo. Commercial and industrial properties have no ABSD at all. FTA nationals (US, Swiss, Norwegian, Icelandic, Liechtenstein) pay 0% on their first property. For most foreigners, Singapore shophouses and commercial property offer the only ABSD-free path to Singapore real estate exposure.

Facts verified: May 2026 · Sources linked below

The April 2023 ABSD increase to 60% for foreigners was a deliberate policy signal: Singapore's residential property market is primarily for residents. The measure effectively priced out most foreign investors from the condo market, except the ultra-wealthy for whom the stamp duty is a rounding error relative to their asset allocation goals.

But the policy specifically targets residential property. It left an important door open: commercial and industrial real estate, where no ABSD applies regardless of buyer nationality. For foreign investors who want Singapore property exposure, this is now the primary path.

The 60% ABSD: What It Actually Costs

At 60%, the ABSD on a Singapore residential property purchase is not just a cost it fundamentally changes the investment thesis. Consider a $2M CCR condo:

Purchase price: $2,000,000
BSD: ~$58,100
ABSD at 60%: $1,200,000
Total acquisition cost: $3,258,100

To break even on this purchase assuming a 3% gross rental yield on the $2M market value the investor collects $60,000/year in rent but has deployed $3.26M. The effective yield on total capital deployed is less than 1.85%, before property tax, maintenance, agent fees, and income tax.

For the property to justify the acquisition cost at exit, the $2M condo would need to appreciate to approximately $3.2M+ just to recover the ABSD outlay a 60% capital gain, which historically takes 10–15 years in CCR at typical appreciation rates.

FTA exception: Nationals of the United States, Switzerland, Norway, Iceland, and Liechtenstein are treated as Singapore Citizens for ABSD purposes under Free Trade Agreements. They pay 0% ABSD on their first residential property in Singapore the same as a local SC. This is a significant advantage for eligible buyers.

US Citizen vs Other Foreigner: Full Cost Comparison

Cost Item	US Citizen (FTA, first property)	Other Foreigner (non-FTA)
Purchase price (example)	$2,000,000	$2,000,000
BSD	$58,100	$58,100
ABSD	$0 (SC equivalent, first property)	$1,200,000 (60%)
Legal fees	~$3,000	~$3,000
Total acquisition cost	~$2,061,100	~$3,261,100
Gross yield on total cost (at $5,000/mth rent)	~2.91%	~1.84%
Break-even appreciation needed	~3% nominal	~63% nominal

Property Types with No ABSD: The Foreign Buyer's Alternative

ABSD is defined under the Stamp Duties Act as applying to residential property. The following property types are explicitly outside the ABSD regime:

1. Commercial Shophouses (D1–D8, Conservation Areas)

Singapore's conservation shophouses particularly in Districts 1 to 8 (Chinatown, Tanjong Pagar, Little India, Kampong Glam, Boat Quay) are among the most sought-after commercial assets in Asia. No ABSD. No buyer nationality restriction. Both commercial-zoned and mixed-use shophouses qualify, though the ABSD treatment differs for the residential component if any.

Entry price: $4M–$15M+ for freehold or 999-year shophouses. Gross rental yield: approximately 2.5–3.5% depending on location and condition. Appreciation: conservation shophouses have delivered strong capital appreciation over 10–20 year horizons due to limited supply and global demand.

2. Office Space

Strata-titled office units in Grade A or Grade B office buildings no ABSD for any buyer. Entry price from approximately $1.5M for smaller strata offices. Gross yield: 3–4%.

3. Retail (Strata-titled shops)

Strata retail units in commercial buildings or shopping complexes. No ABSD. Entry from approximately $800K. Yields variable 3–5% gross for well-located retail.

4. Industrial (Warehouses, Factories, Light Industrial)

B1 and B2 industrial properties. No ABSD. Entry from approximately $800K–$2M. Yields typically 4–6% gross. Higher vacancy risk and more susceptible to industrial cycle. Not suitable for all investors.

Foreign Buyer Options in Singapore: ABSD Status and Yields

Property Type	ABSD for Foreigner	BSD	Indicative Gross Yield	Entry Price Range
Residential condo (CCR)	60%	~3% effective	1.5–2.5%	$1.5M–$10M+
Residential condo (OCR)	60%	~3% effective	2.5–3.5%	$800K–$2M
Conservation shophouse (commercial)	0%	~3% effective	2.5–3.5%	$4M–$15M+
Strata office	0%	~3% effective	3–4%	$1.5M–$5M
Strata retail	0%	~3% effective	3–5%	$800K–$3M
Industrial (B1/B2)	0%	~3% effective	4–6%	$800K–$3M
Residential condo (US/FTA citizen, first property)	0%	~3% effective	2–3.5%	Any

Who Still Buys Residential at 60% ABSD?

Despite the 60% rate, foreign residential purchases have not stopped entirely. The buyers who remain active tend to fall into these profiles:

Ultra-HNW individuals for asset protection

For a family office or high-net-worth individual relocating to Singapore, a $5M CCR property with $3M ABSD is still justifiable as part of a broader Singapore residency and asset protection strategy. The ABSD is not an investment cost it is the price of establishing a Singapore base. The residential asset is incidental.

FTA nationals (US, Swiss, Norwegian)

US citizens, Swiss nationals, and Norwegians in particular are active buyers because they pay 0% on their first property. Singapore's stable rule of law, USD-pegged currency stability, and CCR appreciation track record make it attractive for these buyers on the same terms as local citizens.

Pre-PR pathway buyers

Employment Pass and S Pass holders who intend to apply for PR and eventually citizenship in 5–7 years sometimes absorb the 60% ABSD on the basis that they expect to hold for 10+ years and anticipate significant capital appreciation. This is a high-conviction, long-duration play that very few can afford.

The PR Pathway: A Structured Alternative

Foreign professionals on Employment Pass who apply for and obtain Singapore PR reduce their ABSD from 60% to 5% on their first property. The PR application pathway typically takes 2–4 years for EP holders with strong economic contributions. ABSD on a $1.5M property as a PR: $75,000 a fraction of the $900,000 as a foreigner.

For eligible foreigners with a Singapore work visa and a genuine intention to stay, the PR pathway is by far the most cost-efficient route to Singapore residential property ownership.