Singapore’s property market is known for its high prices and stringent regulations, which can pose significant challenges for investors and homeowners. One of the strategies that have gained traction in recent years to navigate these challenges is “decoupling.” This method allows property owners to maximize their investment potential while managing the financial implications of owning multiple properties. Decoupling has become particularly relevant in the context of Singapore’s Additional Buyer’s Stamp Duty (ABSD).

What is Decoupling?

Decoupling refers to the process where co-owners of a property transfer their ownership shares to one party, effectively making the property solely owned by that individual. This strategy enables the other party to purchase another property as a first-time buyer, thereby avoiding or reducing the ABSD.

How Does Decoupling Work?

In Singapore, the ABSD can significantly increase the cost Decoupling property singapore of acquiring additional properties. For Singaporean citizens, the ABSD rate is 17% on the second property and 25% on the third and subsequent properties. For permanent residents and foreigners, these rates are even higher. By decoupling, a couple or joint owners can strategically manage their property investments to minimize these costs.

For instance, consider a married couple that co-owns Property A. They wish to buy Property B but want to avoid the high ABSD on a second property. By transferring one spouse’s share of Property A to the other, the transferring spouse is no longer considered an owner of Property A. This spouse can now purchase Property B as a first-time buyer, thereby paying a lower ABSD rate or none at all.

Benefits of Decoupling

  1. Significant Cost Savings: The primary advantage of decoupling is the substantial savings on ABSD. For high-value properties, these savings can be considerable, running into tens or even hundreds of thousands of dollars.
  2. Increased Investment Opportunities: Decoupling allows property owners to expand their portfolio without the financial burden of high taxes, enabling them to seize investment opportunities that may arise.
  3. Enhanced Financial Flexibility: By restructuring property ownership, couples can better manage their financial commitments and mortgage loans, tailoring their obligations to meet their long-term financial goals.

Considerations and Risks

While decoupling offers several benefits, it also involves certain risks and considerations:

  1. Legal and Administrative Costs: The decoupling process incurs legal fees, stamp duties for the transfer of ownership, and potentially refinancing costs. These expenses need to be carefully weighed against the potential ABSD savings.
  2. Mortgage Implications: Changing ownership may require a reassessment of the mortgage. The remaining owner must qualify for the loan independently, which can be challenging if their income or creditworthiness is insufficient.
  3. Future Scenarios: Owners should consider future implications, such as changes in their relationship status, financial stability, or further property investments. Proper legal advice and financial planning are essential to navigate these complexities.
  4. Regulatory Changes: Property regulations in Singapore are subject to change. Investors need to stay informed about potential regulatory shifts that could impact the benefits of decoupling.


Decoupling is a strategic method within Singapore’s property market that can offer significant financial benefits by mitigating the impact of ABSD. However, it requires careful consideration of legal, financial, and personal factors. Prospective investors should seek professional advice to ensure that this strategy aligns with their long-term goals and financial capabilities. As the property market and regulations evolve, meticulous planning and staying informed will be crucial for maximizing the advantages of decoupling.


By Admin