Whether a foreigner can buy a Singapore shophouse depends on its “use zoning”, not its looks. Per SLA and URA: a purely commercial (Commercial-zoned) shophouse can be bought freely by foreigners — no ABSD, no approval; a shophouse with residential use may need approval and incur 60% ABSD. Getting the zoning right is step one.
💡 Lucy’s tip: The classic mistake is assuming a shophouse “looks like a shop” so it’s ABSD-free — then getting hit with 60% ABSD because URA zoning includes residential. Always check the URA use zoning first — I do this for clients up front.
Three types by use (per URA zoning)
| Zoning | Foreigner | ABSD | Approval |
|---|---|---|---|
| Commercial | ✅ Yes | None | No |
| Mixed (Commercial/Residential) | ⚠️ Depends | Possible | Possibly |
| Residential | ⚠️ Landed needs approval | 60% | Yes |
Conservation shophouses
Per URA, conservation shophouses in areas like Chinatown, Joo Chiat and Tanjong Pagar are scarce, protected and resilient — favoured by family offices and HNW individuals for use, income and collection value.
Taxes (per IRAS)
- Commercial-use: BSD (up to 5%) + possible 9% GST, no ABSD.
- Residential-use: may incur 60% ABSD.
Summary
- Commercial-use shophouses: buyable, no ABSD.
- First step: check URA use zoning, not looks.
- Most prized: conservation commercial shophouses.
- Contact Lucy — I hold shophouse deals and do the zoning checks.
⚠️ Zoning and taxes as per URA / IRAS; verify with a licensed agent and lawyer.