What is ABSD in Singapore?

ABSD (Additional Buyer's Stamp Duty) is an extra tax on property purchases in Singapore. Singapore Citizens buying their second property pay 20% ABSD. Foreigners pay 60% ABSD on any residential property. It was introduced to cool the property market and is in addition to regular Buyer's Stamp Duty (BSD).

Are Singapore REITs a good investment?

Singapore REITs (S-REITs) must distribute at least 90% of taxable income to unitholders. As of 2026, average S-REIT distribution yields are 5–7%. They offer exposure to Singapore real estate without ABSD, minimum capital of tens of thousands, and the liquidity of a stock exchange listing.

Is Property Still Singapore's Best Investment? ABSD & Alternatives (2026)

ABSD rates 2026: what you actually pay

Buyer's Stamp Duty (BSD) applies to all property purchases. ABSD is an additional layer on top:

Buyer profile	1st property	2nd property	3rd+
Singapore Citizen	0%	20%	30%
Singapore PR	5%	30%	35%
Foreigner (non-FTA)	60%	60%	60%
Entity (company)	65%	65%	65%

The true cost of a second property in Singapore

A Singapore Citizen buying a S$2M condo as a second property:

BSD: approximately S$64,600
ABSD (20%): S$400,000
Legal fees + agent: ~S$10,000
Total upfront friction: ~S$475,000 — before you earn a single dollar of rent.

At a gross rental yield of 3% on a S$2M property (S$60,000/year), it takes nearly 8 years just to recover the ABSD and transaction costs. Add mortgage interest and maintenance, and the hurdle rate is formidable.

S-REITs: real estate exposure without ABSD

Singapore REITs (S-REITs) are listed on the SGX and must distribute ≥90% of taxable income. Key advantages:

No ABSD or BSD — you invest from S$1,000
Distribution yields of 5–7% (2026 average)
Instant diversification — exposure to retail, industrial, logistics, healthcare, data centres
Liquid — sell in seconds on SGX vs 8–12 weeks to sell a condo
Accessible inside CPF Investment Scheme (CPFIS) and SRS

The portfolio alternative: what S$500,000 looks like elsewhere

Second property (S$2M condo, 25% down)

~1.5% net after costs

High (illiquid, single asset) · After ABSD S$400k + BSD S$65k

S-REIT portfolio via SGX

5–7% distribution yield

Medium (market risk, no ABSD) · Fully liquid, SRS/CPFIS eligible

Balanced global portfolio (ETF + bonds)

5–8% total return (historical)

Medium-low (diversified) · Accessible via IFA or SRS account

Endowment / structured product

3.5–5% guaranteed or target

Low (capital protected options) · Fixed term 5–10 years

When property still makes sense

This is not an argument against property — it is an argument for making the decision deliberately:

Your first home — no ABSD for Singapore Citizens, and mortgage interest is real security.
Commercial property — ABSD does not apply to commercial units (shophouses, offices). Yields are often higher and foreign buyers are eligible.
Long-term capital appreciation in District 9/10/11 — prime Singapore properties have historically preserved wealth well over 20+ years.

The adviser's role: running your numbers

A licensed financial adviser can model your personal break-even point, compare the after-tax return of a second property against a diversified portfolio, and factor in your income, existing mortgage, CPF, and retirement timeline. This analysis typically takes one meeting.