A friend recently bought a second residential property and had to pay a 7% ABSD which amounted to quite a bit of money. He asked why wasn't I considering buying another property as I seem to have the financial ability to do so. Well, apart from the fact that I think that Singapore's residential property market is facing a glut and will continue to face a glut for a few years, I am reluctant to pay the ABSD. ABSD stands for Additional Buyer Stamp Duty. This is at 7% for Singaporeans who buy a second residential property and is paid in addition to the regular 3% Buyer Stamp Duty (that has to be paid anytime a residential property is purchased). For Singaporeans who buy a third residential property, the ABSD is 10%. Imagine buying a $800,000 property and having to pay the taxman an additional $80,000! That is enough......