ABSD, ECs, and En Bloc Thresholds: Industry Perspectives on the Next Wave of Policy Reforms

Slowing Home Price Growth Prompts Property Agencies to Call for Review of ABSD and Cooling Measures in Budget 2026

With the growth of Singapore's private home prices moderating significantly, the real estate agency industry believes the time has come to review existing property cooling measures. Several real estate agencies have urged the government to calibrate the Additional Buyer's Stamp Duty (ABSD), Executive Condominium (EC) eligibility criteria, and collective sale (en bloc) regulations with greater precision for various buyer profiles and market segments in the upcoming Budget 2026.

According to the latest figures, private home prices in Singapore rose 3.4% overall in 2025, marking the slowest annual pace of growth since 2020. Industry observers broadly agree that against a backdrop of resilient transaction volumes and well-contained price growth, the current market climate differs markedly from previous rapid-escalation cycles, offering policymakers greater room for fine-tuning.

Over the past year, Singapore's residential market has demonstrated notable discipline and resilience, maintaining robust transaction activity without runaway price inflation. This has created a relatively safe window for policy adjustments, making Budget 2026 an opportune time for the government to reassess prevailing property measures.

Should Foreigner ABSD Remain at Record Highs?

One of the primary focal points of discussion within the industry is the appropriate level of ABSD for foreigners. In April 2023, the government sharply raised the ABSD rate for foreign buyers to 60%, a move that dealt a severe blow to foreign demand in the Core Central Region (CCR).

Data shows that approximately 7.9% of foreign buyers purchasing CCR private homes opted for units priced at $10 million or more—a proportion noticeably higher than that of Permanent Residents (4.4%) and Singapore Citizens (0.5%). Because these high-end foreign buyers are predominantly active in the ultra-luxury segment and do not compete directly with everyday Singaporean households, the ABSD rate does not necessarily need to remain at such punitive levels.

Eugene Lim proposed lowering the ABSD for foreigners to 30%. Without inflating home purchase costs for local households, this move could help revive liquidity in the high-end residential segment while boosting urban population density and vibrancy in line with the government's vision of a "live, work, and play" city. For property developers, clearer demand expectations in the prime segment would also bolster confidence when bidding for land.

Facilitating a Smoother Transition for HDB Upgraders

Beyond policies concerning foreign buyers, the industry has also spotlighted the upgrading aspirations of local households. Upgrading from an HDB flat to private property has long been a key milestone for many Singaporean families, yet the current ABSD framework poses a significant operational hurdle.

Under current rules, HDB flat owners who purchase a private property before selling their existing flat must pay ABSD upfront. This creates considerable cash flow and logistical friction for genuine owner-occupier upgraders. Agencies suggest granting these upgraders a grace period—such as completing the sale of their HDB flat within six to nine months of collecting the keys to their private home—rather than imposing ABSD immediately upon purchase.

This approach aligns with existing mechanisms that allow HDB owners to buy another HDB flat or upgrade to an EC, catering to genuine housing needs while maintaining full ABSD deterrents against multi-property investors. A similar deferred tax arrangement could also be extended to families downsizing or right-sizing from private property to resale HDB flats, allowing them to complete their purchase first before selling their private home within a stipulated timeframe.

Calls to Revisit EC Eligibility and En Bloc Thresholds

With respect to Executive Condominiums (ECs), industry players generally believe that with EC prices rising markedly over the past few years, certain eligibility conditions warrant an update. They suggest the government moderately raise the monthly household income ceiling for EC buyers to reflect prevailing market realities.

Concurrently, authorities could consider raising the Mortgage Servicing Ratio (MSR) cap for buyers from the current 30% to 40%, alongside progressively lifting the household income ceiling from $16,000 to $18,000, and eventually to $20,000 in the future, ensuring ECs continue to serve their role as affordable housing for the "sandwich class".

Additionally, two agencies have called for lowering collective sale (en bloc) thresholds to spur urban rejuvenation. For private residential developments aged 40 years and older, they recommend reducing the required owner approval mandate from 80% to 70%. This would make it easier for aging estates to enter the redevelopment cycle, unlock asset value for owners, and optimise Singapore's scarce land resources.

For property developers, the industry also recommended targeted ABSD remission arrangements for mega-projects acquired through en bloc sales, providing developers with greater certainty during planning and bidding, thereby encouraging participation in large-scale residential redevelopment projects.

Entering an Era of Calibrated Fine-Tuning?

Taking these industry perspectives together, it is evident that against a backdrop of moderating price growth and increasingly bifurcated demand, Singapore's residential property market is entering a phase that warrants calibrated, targeted fine-tuning. Striking a nuanced balance between curbing speculative activity and supporting genuine homeownership will not only safeguard property market stability, but also cater equitably to the varied needs of different buyer segments.

Budget 2026 could well prove to be a defining milestone for this policy direction.