If you’re a foreign property owner in Singapore, you’ve probably asked yourself this question lately: 

“Should I hold on or is it time to exit?”

It’s a fair question.

Because for years, Singapore has been the “safe haven” of Asia, stable, strong, and politically predictable. But as of today, the tone of the market has changed.

The 60% Additional Buyer’s Stamp Duty (ABSD) for foreign buyers has redrawn the playing field entirely.

• Luxury condo transactions in the Core Central Region (CCR) have dropped by over 30% year-on-year since the 2023 cooling measures.
  
• Prime rental rates, after peaking in 2023, have softened by around 6–8%, especially in areas like Orchard, River Valley, and Marina Bay.
  
• And many foreign owners are now quietly cashing out, because re-entry is simply too expensive.
  

As a realtor who speaks with high-net-worth clients daily, I can tell you, the mood has shifted from “buy and hold forever” to “where should I redeploy my capital next?”

The 60% ABSD — A Wall Too High for Re-Entry

In 2023, Singapore raised the ABSD for foreigners to 60% — effectively making it the highest in the world for residential real estate.

Now, the difference between 30% and 60% doesn’t just double your tax — it destroys your yield calculation.

Buying a S$3 m condo now costs S$1.8m in tax alone, that’s 60% lost before you even start.

Even if the property appreciates 10% in five years (S$300k) or even 5% a year, it could take over a decade just to break even on that tax.

That’s why many owners are now thinking strategically:

“If I sell now, I can redeploy my capital where I can actually grow it.”

The Luxury Market Reality: Demand Is Cooling

If you own in prime districts like Orchard, Tanglin, River Valley, or Sentosa, you’ve probably noticed: listings are staying longer, viewing traffic is quieter, and rents are no longer surging.

• Overall private home prices rose only 2.8% year-on-year, the slowest since 2020.
  
• Foreign buyer share of new launches fell below 2%, down from 7% before the ABSD hike.
  
• Luxury rents in the Core Central Region (CCR) have softened about 6–8% since their 2023 peak. 
• According to URA’s Q3 2025 report, average luxury rents in District 9–10 are down roughly 6.3% from the peak, as new supply from CanningHill Piers, Leedon Green, and Irwell Hill Residences enters the market.
  
  

To give perspective:

A 6% decline might seem modest, but for a 1,000 sq ft apartment renting at S$8 psf, that’s roughly S$500 less per month or S$6,000 per year in lost rental income.

For landlords who entered the market at peak valuations, this softening erodes yield, especially when factoring in:

• Higher maintenance and property taxes
• Increased mortgage servicing costs post-rate hikes
• Limited ability to raise rents further as tenants push back

Still, when viewed globally, Singapore’s rental market remains one of the most stable and sought-after. Compared to Hong Kong or London, rental declines are relatively mild, and occupancy remains high.

So yes, the direction has turned, but it’s still a healthy normalization, not a crash.

Resale Market Outlook — Limited Upside Ahead

Resale demand for foreign-owned luxury units has slowed, especially those bought between 2017 and 2021. Here’s why:

• The price growth projection for Singapore private residential property is modest: around 3-4% for full year 2025.
  
• Resale ABSD exposure deters new foreign buyers. 
  
• Foreign buyer participation is low, so resale liquidity for foreign-preferred units may be weaker.
  
• Locals and PRs prefer brand-new launches with developer perks.
  
• High interest rates (hovering around 3.5–3.8%) make holding costs painful.

What does it all mean?

The combination of high entry tax + low yields + local buyer dominance = less upside for foreign-owned resale units in Singapore.

If you’re a foreign property owner, this is where strategy comes in. With 60% ABSD now locked in for any re-entry, some owners are wisely taking profit while still ahead. Others, however, continue to hold for legacy reasons, or for their family’s residency and education plans.

The question isn’t “Is the market falling?”

It’s “Does holding this asset still make financial sense compared to what’s happening overseas?”

So…Should You Hold or Exit?

Let’s be clear, there’s no one-size-fits-all answer.  But here’s how I frame it with my clients:

I’m not telling you to panic. I’m telling you to think strategically. Holding is fine, but holding blindly is not.

Sometimes, the smartest move isn’t to fight the market, but to move with it.

Singapore Investors Are Quietly Moving Capital Abroad

Let’s be real, the trend is already happening.

Over the past year, I’ve personally seen more Singapore-based investors shifting capital abroad than at any point in the last decade. 

• Singapore’s outbound real estate investment hit US$3.9 billion in the last 12 months.
• Singapore also ranked among the Top 5 global sources of cross-border capital in 2025.

• And here’s the interesting part: more than 80% of that money stayed within Asia-Pacific.

According to the 2025 HSBC Global Wealth Report, over 48% of affluent Singaporean investors plan to expand their property portfolios overseas in the next 12 months.

Source: HSBC Global Investor Survey, Nov 2025

That means investors like you are already diversifying, not because they’ve lost faith in Singapore, but because they want balance.

You don’t have to “leave Singapore.” You just have to think globally — letting your money work in more than one market, where growth potential and yields are stronger.

Let’s Talk Before the Next Cycle Turns

If you’re holding a Singapore property and feeling unsure whether to keep, sell, or reinvest abroad, let’s talk.

Here’s the truth: timing matters more than ever.

If you wait another year, you might still sell your Singapore property, but you’ll likely miss today’s window of strong resale demand from PRs and local buyers who are still active in the high-end market.

Meanwhile, overseas markets are already heating up. Prices that look affordable today in Melbourne, Tokyo, or Bangkok may not stay that way in six months.

Don’t wait for the market to decide for you, make your move while the options are still in your favour.

Message us now to start your private property review and explore your next move before the next cycle turns.