First, what are ABSD and SSD?
ABSD stands for Additional Buyer's Stamp Duty. It's an extra stamp duty charged on top of the normal buyer's stamp duty, and it mainly targets residential property — especially additional residential purchases and purchases by foreigners and entities.
SSD stands for Seller's Stamp Duty. It's a duty you pay if you sell certain property within a minimum holding period. And here's the part that surprises many people: SSD does apply to industrial property, not just residential.
Does ABSD apply to industrial property?
No. ABSD applies to residential property purchases. When you buy an industrial property — a factory, warehouse, workshop, or industrial strata unit — ABSD does not apply. You only pay the normal Buyer's Stamp Duty (BSD), the standard stamp duty on the purchase price.
This is one reason industrial property can be attractive to business owners and investors. If you already own a home and ABSD would make buying another residential property expensive, industrial property sidesteps that entirely.
Does SSD apply to industrial property?
Yes — and this is the one to be careful about. Seller's Stamp Duty does apply to industrial property acquired on or after 12 January 2013, if you sell (or dispose of) it within three years of purchase. IRAS sets out the SSD rates for industrial property as follows:
| Holding period (acquired on/after 12 Jan 2013) | SSD rate |
|---|---|
| Up to 1 year | 15% |
| More than 1 year and up to 2 years | 10% |
| More than 2 years and up to 3 years | 5% |
| More than 3 years | No SSD payable |
How SSD is calculated
SSD is calculated on the higher of the selling price or the market value of the industrial property at the date of sale. So if you buy an industrial unit and sell it within the first year, you could pay 15% of the sale price (or market value, if higher) as SSD.
After three years, no SSD is payable. So if you hold the property for more than three years before selling, SSD is not a factor. Industrial property acquired before 12 January 2013 is also not subject to SSD.
This is why holding period matters when you're planning an industrial property purchase. If you think you might need to sell quickly, SSD is a real cost to factor in.
What about commercial property?
ABSD does not apply to commercial property (offices, retail) either. SSD, however, is specifically targeted at industrial property — it generally does not apply to commercial property. So if you're looking at a pure commercial unit, SSD on sale is typically not a concern, but you should always confirm the exact treatment for your specific property with IRAS or a conveyancing lawyer.
What stamp duty do you pay when buying?
When you buy an industrial property, you pay the normal Buyer's Stamp Duty (BSD), calculated on the purchase price or market value, whichever is higher. For non-residential property acquired on or after 15 February 2023, IRAS's BSD top marginal rate is 5% — non-residential BSD rates are generally lower than residential rates. ABSD does not apply to industrial or commercial purchases.
When you rent, you pay stamp duty on the lease, calculated based on the lease term and rent.
Why this matters for your decision
For a lot of business owners, the absence of ABSD is what makes buying industrial property viable. It's exactly how I started — I was still in my BTO within the Minimum Occupation Period, so buying private residential wasn't an option at the time, but industrial property was.
But SSD is the cost people sometimes forget. If there's a chance you'll need to sell within three years, that 5–15% can change the maths significantly. I'll walk you through the full set of costs — BSD, SSD, GST, financing, property tax — honestly before you commit, so there are no surprises.