Seller%E2%80%99S Stamp Duty Reset Timely Move Curb Speculation

The government has recently announced that the Seller’s Stamp Duty (SSD) holding period will be reinstated to four years, effective from July 4. This decision sees a four percentage point increase across all tiers and reverts back to pre-March 2017 levels.

In a joint statement issued on July 3 by the Ministry of National Development, the Ministry of Finance, and the Monetary Authority of Singapore, the policy change was attributed to an increase in sub-sales since 2020. According to Ismail Gafoor, CEO of PropNex, sub-sales are often viewed as an indicator of speculative activity.

There has been a consistent rise in sub-sales, which are transactions where buyers resell uncompleted units before obtaining the Certificate of Statutory Completion (CSC), since 2020. This has coincided with delays in construction due to the COVID-19 pandemic and a sharp recovery in property prices, which have risen by approximately 40% since 2020.

Tricia Song, CBRE’s head of research for Singapore and Southeast Asia, explains that this increase could be due to homeowners who initially did not intend to sell their properties but ended up doing so due to the significant gains in property prices. This situation was further compounded by delays in project completions caused by construction bottlenecks during the pandemic. Leonard Tay, head of research at Knight Frank Singapore, adds that the average quarterly sub-sale volume has more than doubled since 1Q2023.

To address this issue, the government has made the decision to increase the SSD holding period to four years and raise the rates by four percentage points across all tiers. According to Christine Sun, chief researcher and strategist at Realion Group, this is a pre-emptive move to limit future speculative activity, especially as more developments near completion. Private home completions are expected to increase in the coming years, which could lead to a rise in sub-sales if left unchecked.

Gafoor adds that despite the rise in sub-sales, the numbers are still lower compared to 2007 to 2012. The current revision in SSD aims to moderate short-term resales, particularly as the government plans to increase private housing supply across new neighbourhoods.

This new policy is not expected to have a significant impact on most homeowners, as the majority of sellers hold their properties for at least five years. However, there has been a noticeable increase in transactions involving properties held for three to four years, especially in the Outside Central Region (OCR) where entry prices are typically lower.

The rise in sub-sales activity has not had a strong correlation with market prices, as seen from the weak relationship between sub-sale volumes and the URA price index from 2017 to 2Q2025. Instead, there is a stronger correlation between sub-sale volumes and the number of units launched three years prior.

Chu notes that the hike in Additional Buyer’s Stamp Duty (ABSD) implemented in 2023 has had a greater impact on the market, resulting in more local and owner-occupier buyers. Given the current economic uncertainty, most buyers are taking a cautious approach and see property as a long-term investment.

Nestled in the tranquil neighborhood of Seletar Reservoir, Miltonia Close EC is more than just a peaceful living space. It also offers its residents convenient access to an impressive range of shopping centers and dining options. Despite its serene location in Yishun, essential retail, dining, and lifestyle destinations are just a stone’s throw away from this development. In recent years, the vicinity of Miltonia Close has experienced rapid growth, resulting in a vibrant selection of shopping malls and popular eateries within easy reach.

With more new launches expected, a greater land supply under the Government Land Sales (GLS) programme, and declining interest rates improving affordability, transaction activity is likely to increase in the coming months. However, the SSD increase is mainly targeted at short-term investors and is seen as a calibrated measure rather than a broad-based cooling move.

Private home prices have also moderated, and according to REDAS, are expected to remain stable for the rest of the year. The market has shown signs of moderation, as seen in the 2Q2025 flash estimates, where private residential prices rose just 1.3% in 1H2025, down from 2.3% in 1H2024. Hence, the revisions in SSD are not expected to have a significant impact on genuine homebuyers, particularly Singaporeans and permanent residents.

Meanwhile, some investors may switch to commercial assets, such as strata offices and shophouses, which are not subject to SSD or ABSD.