Selling the existing one before buying the replacement unit may be a sensible move
MANY locals who trade one owner-occupied home for another need to sell their existing home first before buying the replacement one in order to avoid being hit with the Additional Buyer’s Stamp Duty (ABSD). The applicable ABSD rate for a Singapore citizen buying a second home is 20 per cent.
However, some locals who trade their sole owned-home for another enjoy greater flexibility under the ABSD regime.
Subject to meeting various conditions, a married couple comprising at least one Singapore citizen can enjoy ABSD remission when they jointly buy a second home, while a single Singapore citizen aged 55 and above can claim a refund of ABSD paid on the second home he buys. For singles, the second home must cost less than the existing one.
