The government has announced an increase in the Seller’s Stamp Duty (SSD) for residential properties, extending the holding period from three to four years. This policy change is intended to address the prolonged rise in sub-sale transactions and curb speculative growth, according to Christine Sun, Chief Researcher and Strategist at Realion Group.
The number of sub-sale transactions for non-landed homes has been on the rise since the pandemic, with a quarterly average of 220 transactions from Q3 2020 to Q2 2025, compared to 88 in the preceding five years. Although this figure is lower than the 502 average transactions from Q1 2010 to Q4 2014, the government aims to prevent a resurgence of speculative activity.
Sun noted that the increase in SSD and the extended holding period are likely preventive measures as more flats are set to receive their Temporary Occupation Permit (TOP) in the coming years. The number of private residential units securing TOP is projected to rise from 5,920 in 2025 to 10,306 in 2027. Additionally, new projects and land sales are expected to boost buying activity, aided by lower interest rates.
Despite these changes, Sun believes the impact on the market may be limited. “Most flats are purchased for owner-occupation,” she explained, suggesting that those buying for personal use will not be significantly affected by the increased SSD. The reduced number of units in the resale market could help maintain price stability as more flats obtain TOP.
In summary, the government’s measures aim to stabilise the property market by reducing speculative transactions and ensuring a balanced supply of housing units.
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