Decoupling Property in Singapore: A Strategic Move for Property Investors

In Singapore’s stringent real estate market, “decoupling” has emerged as a popular strategy among property investors. This approach involves one co-owner of a property transferring their share to the other co-owner, allowing the transferor to be considered a first-time buyer for future property acquisitions. The primary aim of decoupling is to minimize the impact of the Additional Buyer’s Stamp Duty (ABSD), thus facilitating more cost-effective property investments.

Understanding Additional Buyer’s Stamp Duty (ABSD)

The Singapore government introduced the ABSD as part of its cooling measures to stabilize the property market and curb speculative buying. ABSD rates Decoupling property singapore are substantial and vary based on the buyer’s residency status and the number of properties owned. For Singapore citizens, the ABSD rate is 17% on the second property and 25% on the third and subsequent properties. Permanent Residents (PRs) and foreigners face even higher rates, making the purchase of multiple properties increasingly expensive.

How Decoupling Works

Decoupling involves a series of legal and financial steps to transfer property ownership between co-owners. Here’s a step-by-step outline of how the process typically works:

  1. Legal Consultation: Both parties need to engage a lawyer to ensure compliance with all legal requirements. The lawyer will draft the necessary legal documents, such as the Deed of Transfer.
  2. Property Valuation: A new valuation of the property is required to determine the current market value of the share being transferred. This step is crucial for calculating the stamp duty payable on the transfer.
  3. Stamp Duty Payment: The transfer of ownership incurs stamp duty, calculated based on the market value of the property share being transferred.
  4. Mortgage Refinancing: If there is an existing mortgage, refinancing might be necessary. The sole owner must demonstrate the ability to service the entire loan independently.
  5. Completion of Transfer: Once all legal and financial arrangements are in place, the transfer can be executed, and the new ownership will be reflected in the property title.

Benefits of Decoupling

The primary benefit of decoupling is the significant savings on ABSD, allowing investors to expand their property portfolios more cost-effectively. By enabling one party to purchase a new property as a first-time buyer, substantial tax savings can be realized. Decoupling also offers greater flexibility in estate planning, enabling the redistribution of property assets among family members in a tax-efficient manner. This strategy aligns with long-term financial goals and investment strategies, facilitating a more diversified and robust property portfolio.

Risks and Considerations

While decoupling offers substantial benefits, it is not without risks and costs. Legal fees, stamp duties, and potential refinancing costs must be factored into the decision-making process. Additionally, the transfer may attract the Seller’s Stamp Duty (SSD) if the property is sold within a specified holding period. Investors must also consider the financial implications of one party assuming full ownership responsibilities, including the ability to service the mortgage independently.

Regulatory changes and market conditions can also impact the effectiveness of decoupling. As such, it is crucial for investors to stay informed about policy updates and market trends to make well-informed decisions. Engaging professional advisors can help navigate the complexities and ensure the strategy aligns with the investor’s financial objectives.


Decoupling has emerged as a strategic move for property investors in Singapore, offering a viable method to mitigate the impact of the ABSD and optimize property investment portfolios. However, it requires meticulous planning, a thorough understanding of the legal and financial intricacies, and professional advice to navigate potential pitfalls. By strategically employing decoupling, investors can enhance their property holdings and achieve their long-term financial objectives in Singapore’s competitive real estate market.

While the benefits of decoupling are significant, the strategy demands careful execution and consideration of all associated risks and costs. Through strategic planning and professional guidance, investors can effectively leverage decoupling to expand their property investments with reduced tax burdens, ultimately achieving greater success in Singapore’s dynamic property market.