Lately, conversations among overseas property investors often circle around the same questions:
“Where is the best place to buy now? With Hong Kong lifting property curbs, should I grab a unit there?”
“Isn’t Singapore’s 60% stamp duty basically shutting foreigners out?”
At first glance, Singapore’s hefty Additional Buyer’s Stamp Duty (ABSD) of up to 60% for foreigners looks like a deliberately built wall, deterring many in the short term. But if the horizon extends to20years or even across generations, the decision becomes far less obvious
1. Policy Differences: The Visible Cost of Entry
Let's begin by focusing on the tax comparison between Singapore and other core cities.
On single data points, Singapore may look “outrageously expensive,” Hong Kong “shockingly cheap,” and the UK/US “somewhere in between.” But when you consider the full cycle of purchase, sale, and inheritance, a different logic emerges.
• Singapore: High ABSD Filters for Long-Term Buyers
Since 2023, Singapore has levied a60%ABSD on foreign buyers. On a property priced atS$5million, this means paying an extraS$3million in tax upfront—effectively screening out short-term speculators. On top of that, Seller’s Stamp Duty (SSD) applies on properties resold within four years, with rates decreasing each year. Together, these measures compress the space for “quick flips.”
• Hong Kong: Policy Eases, Short-Term More Attractive
In February2024, Hong Kong removed multiple “cooling measures” (SSD, BSD, NRSD). Today, foreign buyers only pay the Ad Valorem Duty (Scale 2), ranging from 0.1% to 4.25%. This sharp reduction in entry costs has revived short-term speculative demand, making Hong Kong’s market significantly cheaper than Singapore’s at entry.
• London and New York: Lower Entry, Higher Long-Term Burdens
The UK imposes a2%non-resident SDLT surcharge, while central London properties still attract lower upfront tax than Singapore’s 60%. New York has no foreign-buyer surcharge but levies transfer and mansion taxes. Crucially, both markets apply high capital gains and inheritance taxes, creating substantial “hidden leakage” for long-term and generational investors.
2. Short-Term vs Long-Term: Which Is Truly “Cheaper”?
A useful way to illustrate the trade-off is to annualize Singapore’s one-time ABSD cost:
At 60% ABSD:
5-year hold → ~9.9% annual drag
10-year hold → ~4.8%
20-year hold → ~2.4%
30-year hold → ~1.6%
This shows that for a 5-year horizon, taxes almost wipe out potential gains—Singapore is unattractive for short-term plays. But as the holding period extends, the upfront “wall” is diluted. With no capital gains or inheritance taxes, selling or passing on property incurs almost zero friction, making Singapore favorable for generational wealth preservation.
By contrast, London and New York’s lower entry barriers mask future costs: capital gains taxes of 20–30% upon sale, plus inheritance taxes of up to 40%, steadily erode wealth over time. Hong Kong currently avoids these taxes, but its policy volatility and geopolitical uncertainty add a significant “risk premium” for long-term holders.
The section highlighted in red on the chart illustrates Hong Kong's price trend from 2015 to 2025
The section highlighted in red on the chart illustrates Singapore's price trend from 2015 to 2025
3. Institutions and Stability: The Real Pillar of Wealth Preservation
Beyond taxes, the political and economic environment is decisive:
• Political and Legal Stability: Singapore consistently ranks high on the World Bank’s Governance Indicators. Transparent rule of law and predictable policy make it uniquely attractive for high-net-worth families seeking asset security and cross-border inheritance certainty.
• Scarce Land, Controlled Supply: With just 735 km² of land, the government tightly regulates housing supply, supporting long-term price resilience.
• Wealth Hub Status: As Asia’s leading hub for family offices and private banking, Singapore provides a full ecosystem for wealth management and intergenerational planning.
4. Conclusion: Time Horizon Determines the Winner
If the goal is 5–10 year arbitrage or capital rotation, Hong Kong—or certain Western markets—offer lower entry costs and liquidity, making them more suitable.
But if the objective is 20+ years of wealth preservation and intergenerational transfer, Singapore’s “expensive to enter, cheap to hold” model keeps wealth safest. Its high ABSD filters short-term money, while no capital gains or inheritance tax, combined with political stability, creates a moat few global cities can match.
Ultimately, investors must ask themselves:
Do you want to make a quick profit, or protect wealth for generations?
On that question, Singapore’s answer may be more convincing than any statistic.
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