Decoupling Property in Singapore: An Effective Strategy for Property Investors

In Singapore’s highly regulated real estate market, “decoupling” has become a popular strategy among savvy property investors. This method involves one co-owner of a property transferring their share to the other co-owner, allowing the former to be considered a first-time buyer for future property purchases. Decoupling is primarily utilized to circumvent the Additional Buyer’s Stamp Duty (ABSD) imposed on second and subsequent property acquisitions, thereby optimizing tax liabilities and facilitating further investment.

The Role of ABSD in Singapore’s Real Estate Market

The ABSD was introduced by the Singapore government as part of cooling measures to stabilize the property market and prevent speculative investments. The ABSD rates are substantial, varying according to the buyer’s residency status and the number of properties owned. For Singapore citizens, the ABSD on a second property is 17%, and on a third property, it rises to 25%. Permanent Residents and foreigners face even higher rates, which can significantly impact Decoupling property singapore the affordability of purchasing additional properties.

How Decoupling Works

Decoupling involves a series of legal and financial steps to transfer property ownership between co-owners. Here’s a simplified example: suppose a married couple, John and Mary, jointly own a property. If they want to buy another property without incurring the high ABSD, John can transfer his share of the current property to Mary. Post-transfer, Mary becomes the sole owner of the existing property, and John can purchase a new property as a first-time buyer, thus avoiding the ABSD on the second property.

The Process of Decoupling

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

Advantages of Decoupling

The main advantage of decoupling is the significant savings on ABSD, allowing investors to expand their property portfolios more cost-effectively. Additionally, decoupling offers greater flexibility in estate planning, enabling the redistribution of property assets among family members in a tax-efficient manner. This strategy can also be beneficial for long-term financial planning, aligning with investors’ broader investment goals.

Risks and Considerations

While decoupling can offer substantial benefits, it is not without its risks and costs. Legal fees, stamp duties, and potential refinancing costs must be considered. Additionally, if the property is sold within a specified holding period, the transaction may attract the Seller’s Stamp Duty (SSD). The process can also be financially and legally complex, necessitating professional advice and careful consideration of the couple’s financial situation and future plans.


Decoupling has emerged as an effective strategy for property investors in Singapore to navigate the high costs associated with the ABSD and expand their property portfolios. However, it requires meticulous planning, a thorough understanding of the legal and financial implications, and professional guidance to ensure a successful and beneficial outcome. By strategically employing decoupling, investors can enhance their property investment strategies and achieve their long-term financial objectives in Singapore’s competitive real estate market.