In a bid to kerb speculative activity in the property market, the Singapore government has announced changes to the sellers’ stamp duty (SSD) for private residential properties, effective from 4 July 2025. The holding period subject to SSD has been extended from three to four years, and the duty rates have been increased by four percentage points across all tiers, now ranging from 4% to 16%. These measures aim to discourage short-term property sales and speculative demand, according to government sources.
The changes mark a return to pre-2017 SSD levels, following a significant rise in property transactions with short holding periods and increased sub-sale activity. The Urban Redevelopment Authority’s property price index indicates that private home prices have surged by an average of 9.7% in the core and rest of the central region, and 19% outside the central region since the end of 2022. Despite this, sub-sales accounted for only 2.6% to 9.5% of total transactions from 2022 to 2024.
Whilst the impact on the residential market is expected to be limited due to the small percentage of sub-sale transactions, the policy revision could affect market sentiment. Upcoming project launches, such as The Robertson Opus and UPPERHOUSE at Orchard Boulevard, will be closely monitored for sales response.
The sector remains neutral, with expectations of a slower macroeconomic outlook and cautious buying sentiment. UOL Group is highlighted as a preferred sector pick due to its strong balance sheet and potential for value creation through acquisitions and asset enhancements.
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