What You Need to Know Before Buying a Second Property in Singapore

PropertyGuru Editorial Team
What You Need to Know Before Buying a Second Property in Singapore
Despite significant property cooling measures in Singapore, many homeowners are still buying a second property for themselves, and with good reason. While a second property can serve as an investment and a passive source of income, here are some things to consider before purchasing one.
Note: This article was updated in June 2023 to reflect changes in policy (i.e. ABSD rates, TDSR threshold, etc.) only.


The Singapore government imposes certain restrictions if your first house is a Housing Development Board (HDB) housing, be it Build-to-Order (BTO) flats, resale HDB flats, executive condos (ECs), or Design, Build and Sell Scheme (DBSS) flats.
For starters, the first thing you’ll need to know is the Minimum Occupation Period (MOP) requirement. Before you buy, sell or rent out your flat, you’ll typically need to live in the flat for a minimum of five years, excluding periods of subletting or non-occupation of the flat. However, the MOP does not apply if you purchased a resale flat without the CPF Housing Grant prior to 30 August 2010.
Additionally, Singaporean owners of HDB or DBSS flats who purchase a second property must continue to stay in their flats unless given permission by HDB to sublet it. Singapore PRs will need to notify HDB of their purchase and move out of their flat within 6 months of the private property purchase.
Remember, these restrictions only apply to public housing. If you have a private property, then you’re not bound by these rules.


If you have taken a loan for your first home, your loan eligibility for the second property may differ. Here are two key things to note:

1. The Loan to Value (LTV) Ratio

The LTV ratio determines the amount you can loan from banks for a particular property. It is expressed as a percentage of the property’s value. An LTV ratio of 65% means you can borrow up to 65% of the property’s value and pay the remaining 35% in the form of a down payment.
Your LTV ratio decreases with each subsequent housing loan. As such, your LTV ratio for the second property will be much lower if you are still paying off your first housing loan. To enjoy the same LTV ratio, it is better to pay off your previous housing loan before buying a second residential property.

2. The Total Debt Servicing Ratio (TDSR)

The TDSR is the percentage of your gross monthly salary that can be used to service all your loans in a month. The current TDSR set by the government is 60%. This means that all your loans must be serviced with not more than 55% of your gross monthly income.

Other Financial Considerations

Eligibility and loan restrictions aside, here are other financial aspects to take note of:

1. Minimum Cash Down Payment and use of CPF money

The minimum cash down payment for a second residential property is 25%, compared to 5% for a first property. With enough funds, you can use your CPF funds to pay part of the downpayment for your second property. However, only funds from your CPF Ordinary Account can be used.

2. Additional Buyer’s Stamp Duty (ABSD)

ABSD is a property cooling measure introduced by the government and imposes an additional tax on buyers of residential property in Singapore, with increasing rates for every subsequent property purchase. Here are the ABSD rates (as of 28 April 2023)
Buyer profileABSD amount (rates on/after 27 April 2023)
SCs buying their first property0%
SCs buying their second property20%
SCs buying their third and subsequent properties30%
SPRs buying their first property5%
SPRs buying their second property30%
SPRs buying their third and subsequent properties35%
Foreigners buying any property60%
Entities (companies or associations) buying any property65%
Trustees for any residential property 65%
Housing developers for any residential property35% (additional 5%; non-remittable)
Source: IRAS
Several conditions have been put in place for buying a second property. While the notion of passive income is appealing, cooling measures such as those highlighted could result in a purchase that is eventually unprofitable. It is therefore important to take these measures into account before buying a second residential property in Singapore.
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Disclaimer: The information is provided for general information only. PropertyGuru Pte Ltd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

More FAQs About Buying a Second Property in Singapore

Yes, so long you buy a private property first and are intending to purchase another private property. You'll have to pay ABSD too. If you want to own an HDB flat and a condo, you have to buy the HDB flat first, and only buy the condo after you've fulfilled the HDB flat's MOP.

Singapore Citizens are charged 12% for their second property. Singapore PRs pay 15% for their second property. Foreigners are charged 20% for buying any property.

Yes, so long you have sufficient funds and meet all eligibility requirements. Not sure if you do? Speak to our friendly home loan advisors to better understand how you can finance your home, all at no cost!