ABSD rates in force since 27 April 2023
Should I sell first or buy first? The ABSD rule that decides it
Upgraders ask this as a cash-flow question. It is really a timing question, and the timing rule is one sentence long. Here it is, with the arithmetic worked out on a S$1,800,000 purchase.
The rule
Additional Buyer’s Stamp Duty (ABSD) counts the properties you own on the day the contract is executed — not the day the sale completes.
IRAS treats a property as acquired by the buyer, and sold by the seller, when the Option to Purchase (OTP) is exercised or the sale and purchase agreement is signed, even if the sale has not legally completed. That single sentence decides the whole sell-first / buy-first question.
So the clean sequence is: the contract to sell your existing home is executed before you exercise the option on the new one. Do it in that order and you are a first-property buyer when the new purchase is counted. Do it the other way and you own two homes on the counting date, and the new one is your second property.
An option you have merely granted does not count. Handing a buyer an OTP on your flat does not divest you of it — only the buyer exercising it does. A granted-but-unexercised option leaves you still owning the property on ABSD’s clock.
| Buyer | 1st residential property | 2nd | 3rd or more |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Singapore Permanent Resident | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity or trust | 65% | 65% | 65% |
If you buy first anyway: the married-couple refund
A married couple who buy before selling pay the ABSD up front and may claim it back, provided every one of these holds:
- You are legally married and still married when the refund is claimed.
- At least one spouse is a Singapore Citizen.
- The replacement home is bought jointly in both spouses’ names and no one else’s.
- Your first home is sold within 6 months of buying the replacement (or of its Temporary Occupation Permit or Certificate of Statutory Completion, if the replacement was uncompleted when bought).
- No other residential property is acquired between the two transactions.
- The refund application reaches IRAS within 6 months of the sale.
The refund is a claim, not a certainty: miss one condition and the money stays paid. Buying first therefore costs you the ABSD in cash for months even in the good case, and permanently in the bad one.
Worked example
The arithmetic, in full, so you can check it.
- BuyersMarried couple, both Singapore Citizens
- Currently ownOne HDB flat, held jointly
- BuyingA condominium at S$1,800,000
Route 1 — sell first: the flat’s sale contract is executed before the condo option is exercised
- Properties owned when the condo purchase is counted: 0
- ABSD: the condo is their 1st residential property, Singapore Citizen rate 0%
0% × S$1,800,000 = S$0 - Buyer’s Stamp Duty (BSD), charged in slices:
1% × first S$180,000 = S$1,800
2% × next S$180,000 = S$3,600
3% × next S$640,000 = S$19,200
4% × next S$500,000 = S$20,000
5% × remaining S$300,000 = S$15,000
BSD total = S$59,600 - Duty payable on the condo = S$0 + S$59,600 = S$59,600
Route 2 — buy first: the condo option is exercised while they still own the flat
- Properties owned when the condo purchase is counted: 1
- ABSD: the condo is their 2nd residential property, Singapore Citizen rate 20%
20% × S$1,800,000 = S$360,000 - BSD is unchanged at S$59,600
- Duty payable up front = S$360,000 + S$59,600 = S$419,600
- If every refund condition is met and the flat sells within 6 months, S$360,000 comes back — months later, and only then
The answer Sequencing decides S$360,000. Sell-first pays S$59,600 in duty. Buy-first pays S$419,600 up front, of which S$360,000 is refundable only if all six married-couple conditions hold.
What changes this answer
The numbers above are right for that couple. Change any one of these facts and the answer moves:
- Citizenship of each buyer. A Permanent Resident buying a first property pays 5%, not 0%. Where buyers have different profiles, the highest applicable rate applies to the whole purchase.
- Free Trade Agreement nationality. Nationals of certain countries are, under Singapore’s Free Trade Agreements, accorded the same stamp-duty treatment as Singapore Citizens. Whether this applies turns on the exact nationality and, for some countries, on residency status — check the current IRAS list rather than assume.
- How many residential properties you already own. Property held overseas does not count for ABSD, but a part-share in a Singapore property does.
- Whether you are married, and whose names are on the title. The refund route requires a legal marriage, at least one Singapore Citizen spouse, and the replacement bought jointly in the two spouses’ names only. Adding a parent or sibling to the title closes it.
- Whether the option on your existing home has been exercised or merely granted. Granting is not selling. This is the single most common way a sell-first plan quietly becomes a buy-first bill.
- Whether the replacement is completed. For an uncompleted property the 6-month clock runs from the Temporary Occupation Permit or Certificate of Statutory Completion instead.
- Whether you are a single Singapore Citizen aged 55 or above right-sizing. A separate refund route exists for that case, with its own conditions.
These are exactly the facts Dex asks you for before it computes anything. It will not guess a citizenship or a property count to produce a tidier answer.
Sources
Every figure above comes from these official pages. We link them so you can check the number yourself rather than take ours on trust.
Common follow-up questions
Do I pay ABSD if I sell my flat before buying a condominium?
If the contract for the sale of your flat is executed before you exercise the option on the condominium, you own no residential property at the moment the purchase is counted. A Singapore Citizen buying a first residential property pays 0% ABSD. Buyer's Stamp Duty is still payable.
Does granting an option on my flat count as selling it?
No. Granting an Option to Purchase does not divest you of the property. Only the buyer exercising it does. Until then you still own the flat for ABSD purposes.
Can I get the ABSD back if I buy before selling?
A married couple may claim a refund if all six conditions hold, including that at least one spouse is a Singapore Citizen, the replacement is bought jointly in the two spouses' names only, and the first home is sold within 6 months of buying the replacement. It is a claim, not a certainty, and the money is paid up front either way.
What ABSD does a Permanent Resident pay on a first property?
5% on the first residential property, 30% on the second and 35% on the third or more, under the rates in force since 27 April 2023.
This page explains the published rules and shows the arithmetic so you can check it. It is general information, not financial or legal advice, and it cannot know your full circumstances. Rules change — the effective date above tells you which version this page states. Confirm anything you are about to act on with the official source, or ask Dex with your own numbers.
Ask Dex on WhatsApp
Sequencing a sale and a purchase, with your own numbers? Dex is the AI property advisor by Propdex. Every regulated figure it gives you is computed by a rules engine from versioned rules that cite official sources — never guessed.
Ask Dex on WhatsAppSend the pre-filled message to prove this is your number and join the beta. Free for consumers.