Buying a Home in Singapore? Guide to the 60% Property Tax

Quick Summary

Foreigners face a staggering 60% Additional Buyer’s Stamp Duty (ABSD).

The 2026 rental market is expected to stabilize due to a surge in new housing supply.

Strategically renting is often wiser than buying until you obtain Permanent Residency (PR).

Is housing the biggest concern for you since moving to Singapore? While finding a home is a challenge in Korea, Singapore applies even stricter rules to foreigners. With rapid changes in real estate policies over the last few years, buying a home without proper research could lead to a massive tax burden.

As a 7-year resident of Singapore, I’ve put together a guide based on 2026 data to help you understand the reality of the Additional Buyer’s Stamp Duty (ABSD) and practical housing strategies. If you dream of owning a home in Singapore, read on!

The 60% Barrier: Understanding the Foreigner Tax (ABSD)

Because the Singapore government prioritizes housing stability for its citizens, it imposes heavy taxes on foreign buyers. This is known as the Additional Buyer’s Stamp Duty (ABSD). After doubling from 30% to 60% in April 2023, this rate remains in effect through 2026.

Let’s look at what happens if you buy a typical condo for SGD 2,000,000 (approx. 2.3 billion KRW). The taxes are eye-watering:

ABSD (60%): SGD 1,200,000 (approx. 1.38 billion KRW)
Buyer’s Stamp Duty (BSD, approx. 3-4%): Approx. SGD 69,600 (approx. 80 million KRW)
Total Tax: Approx. SGD 1,269,600 (approx. 1.46 billion KRW)

When the tax alone exceeds half the property value, buying a home as a foreigner becomes nearly impossible unless you have significant wealth. While citizens of specific countries like the US or Switzerland are exempt, South Korean nationals, unfortunately, do not receive this benefit.

2025–2026 Property Tax Changes and Rebates

Taxes don't end at the purchase. Property Tax, which is an annual holding tax, was adjusted on January 1, 2025, based on Annual Value (AV) brackets. Fortunately, 2026 offers some slight relief for owner-occupiers.

Owner-Occupier Rates: Progressive rates from 0% to 32% apply based on AV. Most condos fall within the 4% to 14% range.
2026 Tax Rebate: To help with the cost of living, the government will provide a 10% property tax rebate for owner-occupied residential properties in 2026, capped at SGD 500.
Investment (Rental) Properties: If you rent out the property instead of living in it, the tax rates are significantly higher, ranging from 12% to 36%.

2026 Rental Market Outlook: Is it Finally Stabilizing?

If buying is too expensive, renting is the logical alternative. Many struggled with skyrocketing rents in 2022 and 2023, but the outlook for 2026 is more promising.

With over 7,000 new condo units expected to hit the market in 2026, rental increases are projected to slow down to a modest 2.5% to 3%. Here is a rough guide to current monthly rental rates:

Housing Type	Monthly Rent (SGD)	Monthly Rent (KRW)
1-Bedroom Condo	SGD 3,800 ~ 4,500	Approx. 4.37M ~ 5.18M KRW
3-Bedroom Condo (Outside Central)	SGD 5,500 ~ 8,000	Approx. 6.33M ~ 9.20M KRW
HDB Whole Unit (3-Bedroom)	SGD 3,500 ~ 4,500	Approx. 4.03M ~ 5.18M KRW

There are certainly more options now, and there is more room to negotiate with landlords. Instead of focusing solely on the city center (Orchard, CBD), looking at Rest of Central Region (RCR) areas like Queenstown or Tiong Bahru can offer better value for your money.

Pro-Tips to Remember!

To minimize stress regarding housing in Singapore, keep these four tips in mind:

Diplomatic Clause: This is a must-have in your rental contract. It acts as a safety net, allowing you to terminate the lease after 12 months with 2 months' notice if you are transferred out of Singapore or lose your job.
Prioritize Permanent Residency (PR): If you are determined to buy, it is financially wiser to wait until you get your PR. For a PR's first home, the ABSD drops significantly to 5%. The difference between 60% and 5% can save you hundreds of thousands of dollars.
HDB is for Renting Only: Foreigners who are not Citizens or PRs cannot purchase public housing (HDB). You can only rent them.
Check the Annual Value (AV): Before buying or holding a property, check its AV on the IRAS (Inland Revenue Authority of Singapore) portal. A higher AV means higher annual property taxes.

In conclusion, buying a home in Singapore as a foreigner right now can be a very risky financial move. For the property to be a good investment, prices would need to nearly double just to recover the 60% tax, which is unlikely in the current market. For now, the smartest move is to rent strategically while waiting for an opportunity to apply for PR.