You’ve worked hard, saved diligently, and now your HDB or condo feels a little… tight. Maybe it’s the second kid, or maybe you just want a proper study instead of turning the dining table into a laptop graveyard.

So you start scrolling property listings, dreaming about that next upgrade. Then you do some quick math and — bam — ABSD (Additional Buyer’s Stamp Duty) smacks you in the face like a soggy cheque.

For the uninitiated, ABSD is the government’s way of saying, “You can buy another home… but only if you really, really mean it.”

But here’s the thing: upgraders aren’t doomed to pay the full ABSD bill. If you understand the rules, you can legally avoid — or at least minimise — the damage.

This guide walks you through how smart Singapore homeowners plan their next move without paying extra.

The Groundwork: Know Your Enemy

What ABSD Actually Is (and Why It Exists)

Before we talk “hacks,” let’s get the basics down.

ABSD stands for Additional Buyer’s Stamp Duty. It’s an extra tax charged on top of the standard Buyer’s Stamp Duty (BSD) when you buy property in Singapore. The intent is simple: keep speculative buying in check and cool the market.

Here’s what Singapore Citizens pay (as of 2025):

• 0% for the first property
• 20% for the second property
• 30% for the third and beyond

Permanent Residents and foreigners pay even more — up to 60%. So if you’re a local upgrading to a second home before selling your current one, you could be staring at a six-figure tax bill.

Example: Buy a $1.5M condo while still owning your HDB? That’s $300,000 in ABSD. Enough to buy a brand-new Tesla.

The Key to Avoiding ABSD

The magic phrase here is “one property at a time.”

If you sell your current place before buying the next one, you’re a first-time buyer again — and the ABSD vanishes like free samples at Don Don Donki.

That’s the foundation. Everything else in this guide builds on that simple idea.

The Strategy Zone: How to Upgrade Without Paying Extra

1. Sell First, Then Buy

The most straightforward strategy is also the least glamorous: sell your current property before buying your next one.

Sounds obvious, but here’s why it works like a charm:

• Once your first property is sold, you’re no longer a property owner.
• That makes your next purchase your “first property” again.
• Result? No ABSD.

Bonus: For Singapore Citizens upgrading to a second home, even if you buy first and sell later, you can still apply for an ABSD refund — as long as you sell your first property within six months of purchasing the new one.

Pro Tip: Negotiate a longer completion date with your buyer or temporary extension of stay (HDB allows up to 3 months) so you don’t end up homeless between transactions.

2. Buy Under One Spouse’s Name

Now let’s talk about the “married couple power move.”

If you’re buying your very first property, consider registering it under one spouse’s name instead of both.

Here’s why:

• The owning spouse takes the loan and title.
• The non-owning spouse remains “property-free.”
• When it’s time to buy your next property, that property-free spouse can purchase it as a first-timer, skipping ABSD entirely.

ABSD applies per individual owner, not per household. As long as one spouse remains without property ownership, that person can buy again under the normal BSD rules — no ABSD surcharge.

• The single borrower must qualify for the full loan amount.
• You’ll need a trust, will, or other legal protection so the non-owning spouse isn’t left out if things go south.

This move doesn’t suit every couple, but when it works, it’s like unlocking a cheat code in the property market.

3. Decoupling: The Sophisticated Shuffle

Ah yes — the legendary Decoupling Property Singapore move.

Decoupling means one spouse “sells” their share of the home to the other, effectively removing their name from the ownership record.

Once that’s done, the exiting spouse is considered “property-free” again — eligible to buy another home without ABSD.

Example Scenario

1. Mr and Mrs Tan co-own a condo worth $1.5M.
2. They want to buy a second property.
3. Mrs Tan “sells” her 50% share to Mr Tan.
4. After legal and stamp duties, Mrs Tan is now property-free.
5. Mrs Tan buys Property B under her name only — and avoids ABSD.

What’s the Catch?

• You’ll pay Buyer’s Stamp Duty on the transferred share.
• The exiting spouse’s CPF (plus accrued interest) must be refunded.
• You might need to refinance or restructure your existing loan.
• Legal and valuation fees add up.

But if the next property is expensive — say $1.5M to $2M — and ABSD would’ve been $300K or more, decoupling costs (~$30K–$50K) suddenly feel like pocket change.

4. Timing It Like a Pro

Even with perfect planning, property deals take time — and timing is where most upgraders mess up.

The Golden Rule: 

Always sell first, even if that means renting temporarily.

Because once you’ve exercised the option to purchase a new property while still owning another, you’re immediately subject to ABSD — even if your old one’s already listed for sale.

The Bridge Strategy

If the fear of being between homes keeps you up at night:

• Use a bridging loan to cover the short gap between selling and buying.
• These loans are short-term (6 months or less) and bridge the cashflow from your sale proceeds.
• Once your old home sale completes, repay it.

Bridging loans keep your ABSD strategy intact without you needing to couch surf with your in-laws.

5. Buy Through Family (When It Actually Makes Sense)

In some families, adult children or parents who don’t own property can purchase one under their own name.

If your child (over 21) or parent is financially stable, you can buy the next property under their name, avoiding ABSD for yourself.

Proceed With Caution

• Legally, they own the property — not you.
• You can’t use CPF funds if you’re not on the title.
• It can get messy if relationships sour or plans change.

This isn’t a “hack” so much as a family investment strategy. It only works if everyone understands their legal and financial responsibilities.

The Money Reality Check

Do the Math Before You Get Fancy

Avoiding ABSD sounds sexy, but let’s keep it real — sometimes the workaround costs almost as much as the tax itself.

So before pulling the trigger on decoupling, bridging loans, or ownership restructuring, run the full numbers:

• ABSD amount if you buy now
• Cost of decoupling (legal + stamp + CPF + refinancing)
• Opportunity cost (time, stress, liquidity)

If your “hack” saves less than it costs, it’s not a hack — it’s a headache.

The “Don’t Get Burned” Rule

Remember: ABSD is a government policy tool, and the rules can change anytime. What’s legal and efficient today might not be next quarter. Always verify with a conveyancing lawyer or property consultant before signing anything.

Conclusion

Avoiding ABSD isn’t about gaming the system — it’s about understanding it better than most people do.

If you’re upgrading your home, you have three levers to pull:

1. Timing – sell before buying.
2. Ownership structure – buy under one name or decouple strategically.
3. Financial planning – make sure the numbers justify the move.

You don’t need to outsmart the government to save money on property. You just need to play by the rules — but play them like a pro.

With the right planning, you can move into your dream home without paying extra, keep your finances tight, and still have enough left for that weekend IKEA trip (and the meatballs).