1. Reduce ABSD for foreigners buying high-value CCR homes
The doubling of the additional buyer’s stamp duty (ABSD) rate for foreigners purchasing a residential property in Singapore from 30% to 60% in April 2023 has been effective, says PropNex, particularly in the Core Central Region (CCR), which tends to attract more investment interest.
In 2025 (up till Dec 30), foreigners bought 126 CCR non-landed private residential properties, accounting for about 2.9% of the non-landed home transactions in the CCR. This was a record low proportion since 1995, according to URA Realis caveat data.
This is despite the CCR having posted a strong rebound in sales in 2025, showing how the measure has curbed foreign investment demand, notes PropNex.
It believes there is room to lower the ABSD rate for foreigners to 30% in the “ultra-luxury” CCR segment, or non-landed private homes that cost at least $10 million each, as this is a narrow segment and buyers are not competing with Singaporean households.
Over the same period in 2025, about 7.9% of the non-landed CCR private homes purchased by foreigners were priced at $10 million or more, compared with the 4.4% and 0.5% proportions for Singapore permanent residents (PRs) and Singaporeans respectively.
“Restoring the ABSD rate back to 30% for this niche segment may potentially help to stimulate sales at the very top-end of the market, bringing liquidity back without pushing up prices for everyday Singaporeans, who, for [the] most part, do not participate in the ultra-luxury private housing market,” says PropNex.
2. Lower the en bloc majority consent threshold
En bloc sale in Singapore is governed by the Land Titles (Strata) Act. Under the existing framework, the collective sale threshold is 80% majority consent for developments aged 10 years and older, and 90% for those under 10 years old. The Ministry of Law has said that a review of the collective sale regime is underway.
PropNex proposes that the majority consent threshold be reduced to 70% for ageing developments that are 40 years or older “to facilitate the possibility of an en bloc sale”. “This will encourage urban renewal, rejuvenate ageing estates and optimise land use, as well as help owners of these older properties who may otherwise be saddled with the rising cost of maintaining an ageing development with outdated facilities.”
3. Adjust ABSD remission deadline
The ABSD remission is applicable to acquisitions of sites on or after Dec 8, 2011 for the development of five or more units of housing accommodation, if remission conditions are met.
Presently, developers are required to pay 40% ABSD, of which 35% ABSD may be remitted upfront subject to conditions (the other 5% is non-remittable). Developers have to sell all units in the project within five years from site acquisition to obtain ABSD remission.
With effect from Feb 16, 2024, eligible projects with at least 90% of units sold at the five-year sale timeline are subjected to a lower clawback rate on the ABSD remission.
The government has also provided targeted extensions to the ABSD remission timelines for developers, as announced in March 2025. These extensions — ranging from six months to a year — are primarily for complex, large-scale projects, or those adopting new construction technologies.
Developers of private residential projects submitted through application portal CORENET X are eligible for a six-month extension to their ABSD remission timelines if they meet stipulated requirements.
PropNex believes there may be scope to extend the ABSD remission deadline extension from five years to seven years for “massive” land plots that are 80,000 sqm or larger. “For instance, private residential projects like Braddell View sit on a site spanning over 100,000 sqm, while Pine Grove and Mandarin Gardens have site areas of nearly 83,000 sqm and 100,000 sqm respectively.”
These projects have repeatedly been launched for collective sale over the years without success, partly due to a mismatch in price expectations, the sprawling land size, as well as considerable development and financial risks that developers could face, adds PropNex.
4. Raise mortgage servicing ratio for EC buyers
The mortgage servicing ratio (MSR) refers to the portion of a borrower’s gross monthly income that goes towards repaying all property loans. Currently, the MSR is capped at 30% of a borrower’s gross monthly income and only applies to home loans for the purchase of an HDB flat or an EC — where the minimum occupation period (MOP) has not expired.
The MSR was first set at 40% during its inception, and it was eventually brought down to 30% in 2013 for housing loans granted to HDB flat and new EC buyers, and it has stayed at that level since.
In view of the rising prices of new ECs, PropNex believes the MSR for new EC purchases is due for a review. From 2013 to Dec 28, 2025, the average transacted price of new EC units has jumped 88% from $910,713 to about $1.715 million, as per caveats lodged. Meanwhile, the average HDB resale price rose nearly 37% from $476,441 in 2013 to $652,451 in 2025.
New EC prices have risen substantially in the past years, while resale HDB prices remain markedly lower. In view of the large price disparity, the MSR for new EC purchases could be raised to 40% to improve home financing ability, while keeping the MSR for HDB flats at 30% to ensure prudent borrowing, writes PropNex.
5. Increase monthly household income ceiling for EC buyers in phases
The government is reviewing the monthly household income ceiling for new public housing flats (presently at $14,000 for families). PropNex hopes that policymakers will similarly look into adjusting the same for new EC buyers.
At the prevailing household income ceiling of $16,000 per month, prospective EC buyers would be able to secure a bank financing of around $1 million based on an MSR of 30%, a medium-term interest rate floor at 4% p.a., and a 30-year loan tenure.
Factoring in the bank loan amount, there would still be a shortfall of $372,000 to be paid, after the buyer puts a 20% downpayment of $343,000 under the Deferred Payment Scheme (DPS), assuming the EC purchase price at the $1.715 million average.
The total downpayment ($343,000) and shortfall amount ($372,000) would come up to a total of $715,000, which the EC buyer has to pay in a combination of cash and funds from their CPF accounts.
“This represents a substantial sum for many couples, and may put new EC units out of their reach, if they do not have enough savings or access to financial help from family members,” says PropNex.
Should the monthly income ceiling be raised to $18,000, the downpayment and shortfall amount will fall to $595,000. This could fall further to $465,000 if the income ceiling is lifted to $20,000 per month. That said, the move will also mean that buyers will see an increase in their debt obligations, with higher monthly home loan repayments, adds Propnex.
6. Lifting the 15-month wait-out period
Finally, PropNex notes that the 15-month wait-out period was introduced in September 2022 as part of a package of cooling measures. It requires former private home owners who have sold their private residential property to wait for 15 months before they can buy an unsubsidised resale HDB flat (with exceptions for certain seniors).
National Development Minister Chee Hong Tat has said private property owners may not need to wait till 2027 or 2028 for a review. With HDB resale flat prices growing at a slower pace and transaction volume moderating, PropNex believes that it may be timely to remove the 15-month wait-out period in 2026.
The lifting of the 15-month wait-out period will help private homeowners who wish to right-size their home, and may possibly be beneficial to the en bloc sale process, as private homeowners will be able to channel the sale proceeds to purchase a resale flat, adds PropNex.
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