The Singapore government has reinstated the Seller’s Stamp Duty (SSD) to a four-year holding period, with rates increased by 4 percentage points in each yearly bracket. This decision comes as a response to the rising number of subsales, which have surged from 198 in 2020 to a peak of 1,428 by 2024, according to Leonard Tay, Head of Research at Knight Frank Singapore.
The increase in subsales is attributed to the COVID-19 pandemic’s impact on construction timelines, causing delays and pushing project completions beyond the SSD period. As a result, many homeowners who purchased properties before or during the pandemic found themselves able to sell their homes without incurring SSD, capitalising on the rising private home prices. In 2023 alone, 19,968 homes were completed, offering subsale buyers more affordable options compared to new launches.
Interest rate hikes from 2022 to 2023 also played a role, as some buyers faced higher mortgage payments and opted to sell their properties instead. With construction delays now resolved and supply meeting demand, the government aims to prevent subsales from driving up prices further by extending the SSD period and increasing rates.
Looking ahead, Tay speculates that if subsales continue to rise despite these measures, the government might consider implementing a Minimum Occupation Period (MOP) for private homes, similar to that of HDB flats. This move would aim to stabilise the market and ensure long-term affordability.
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