In a bid to cool the property market, the Singapore government has announced an increase in the Seller’s Stamp Duty (SSD) by 4% and extended the holding period for properties subject to the SSD from three to four years. This measure, effective from 4 July, was jointly announced by the Ministry of National Development, Ministry of Finance, and Monetary Authority of Singapore.
The SSD, first introduced in 2010, has undergone several adjustments to align with policy and market conditions. The latest change reverts the SSD to its pre-March 2017 state. This move targets speculative private home purchases, which have seen a sharp rise in transactions with short holding periods, particularly in the sub-sale of uncompleted units.
Despite previous cooling measures, private property sub-sales have surged post-COVID, peaking at 9.5% of total transactions in Q4 2023. Although sub-sales have eased, they remain above pre-COVID levels, with 321 units or 4.4% of total transactions in Q1 2025. Concerns persist over market overheating due to increased transactions and declining domestic interest rates.
The property market has shown resilience despite high interest rates and multiple cooling measures since December 2021. The most recent measure, in April 2023, raised the Additional Buyers’ Stamp Duty for multiple home purchases by residents and foreigners. Economists expect the SSD tightening to moderately adjust property demand in the short term, with lower interest rates and robust economic growth acting as mitigating factors. The Singapore property market continues to rest on strong fundamentals.
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