The Singapore government has revised the Seller’s Stamp Duty (SSD) by extending the holding period from three to four years and increasing the rates by four percentage points. This change, effective from 4 July 2025, seeks to moderate the rising number of sub-sales in the private residential market, according to PropNex Realty’s CEO, Ismail Gafoor.
The SSD, first introduced in 1996 and reintroduced in 2010 after a brief suspension, has undergone several revisions over the years. The latest adjustment is not seen as a new cooling measure but rather a return to previous SSD rules to curb sub-sales, which involve selling units before completion. Sub-sales have increased from 198 units in 2020 to 1,428 units in 2024, although still below the levels seen between 2007 and 2012.
Gafoor noted that the SSD revisions in 2010 and 2011 effectively reduced sub-sales, leading to a relaxation in 2017. However, sub-sales have risen post-COVID-19, driven by a strong market rebound and a 38% cumulative increase in the Urban Redevelopment Authority’s Property Price Index from Q1 2020 to Q4 2024.
Despite the changes, PropNex does not anticipate a significant impact on the housing market, as most buyers currently adopt a mid- to long-term view. With private home prices moderating and a 1.3% increase in the first half of 2025, the motivation for short-term sales may decrease. Gafoor also suggested that some investors might shift focus to commercial properties, which are not subject to SSD or additional buyer’s stamp duty.
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