ERA urges ABSD rethink as HDB resale growth slows to 2.9%

ERA floats buy-first windows of 6–9 months for movers, plus easier older collective sales and longer remissions.

ERA has called for a review of property cooling measures in Budget 2026, arguing that moderating price growth provides an opportunity to fine-tune policies to better balance affordability and market stability.

In its wishlist ahead of the Budget statement on 12 Feb., ERA said private home prices rose an estimated 3.4% in 2025, slightly slower than the 3.9% increase in 2024, whilst HDB resale prices grew about 2.9%, down sharply from 9.7% a year earlier.

Against this backdrop, the agency said it may be timely to relook additional buyer’s stamp duty (ABSD) and related measures.

ERA proposed reducing or lifting the 15-month wait-out period for private property owners looking to downgrade to an HDB resale flat, saying the policy’s objectives may have largely been met as the market stabilises.

It also suggested differentiating between genuine owner-occupiers and investors under the ABSD framework, to allow households to upgrade or right-size more easily whilst retaining tighter restrictions on multiple-property investors.

For upgraders, ERA proposed allowing Singaporean households moving from HDB to a private home to defer ABSD, provided they sell their HDB within a six- to nine-month window after taking possession of the private property, with ABSD and penalties applying if the deadline is missed.

It suggested a mirror arrangement for right-sizers moving from a private home to an HDB resale flat, allowing them to buy first and sell within a similar timeframe.

ERA also called for a recalibration of ABSD for foreign buyers, proposing a lower rate in the range of 30% to 60%, citing a sharp drop in foreign-buyer transactions since the April 2023 increase.

It suggested additional safeguards such as longer holding periods or restrictions on renting. The agency further floated a differentiated approach for Sentosa Cove, including a targeted reduction or removal of ABSD, arguing the area is a niche segment with limited impact on the wider market.

On executive condominiums, ERA flagged affordability pressures, noting that the median price of new ECs has risen about 47% from 2021 to 2025.

It suggested a modest increase in the EC income ceiling whilst keeping the mortgage servicing ratio at 30%, cautioning against adjusting both at the same time.

Finally, ERA proposed measures to support redevelopment and housing supply, including lowering the consent threshold for en-bloc sales of older developments and extending ABSD remission timelines for large collective-sale sites that require longer planning and infrastructure coordination.