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In a decisive move to curb rising speculative activity in Singapore’s residential property market, the government announced a hike in the Seller’s Stamp Duty (SSD) rates and a reinstatement of the four-year holding period. Effective from July 4, 2025, these measures aim to discourage short-term flipping of private homes, especially uncompleted units.
Under the revised framework, property sellers will face higher SSD rates, with the maximum duty raised to 16% for sales within the first year of purchase—up from 12% previously. The duty then tapers down to 12% for properties sold within the second year, 8% in the third year, and 4% in the fourth year. No SSD is payable beyond the four-year holding period. This is a reversion to pre-2017 policies, where a four-year holding period was also in place.
| Holding Period | SSD Rate (Till Jul 3, 2025) | SSD Rate (From Jul 4, 2025) |
|---|---|---|
| Up to 1 year | 12% | 16% |
| >1 to 2 years | 8% | 12% |
| >2 to 3 years | 4% | 8% |
| >3 to 4 years | 0% | 4% |
| >4 years | 0% | 0% |
According to a joint statement by the Ministry of National Development, Ministry of Finance, and the Monetary Authority of Singapore on July 3, the adjustments target rising sub-sale activity and the growing trend of flipping units before project completion. The agencies noted that “the number of private residential transactions with short holding periods has increased sharply in recent years.”
Notably, HDB owners will not be affected by the revised SSD, as flats are already subject to a Minimum Occupation Period (MOP) of five years.
The resurgence in sub-sale transactions—where a buyer sells a property before its completion—has alarmed policymakers. While far from the 2007 peak of nearly 5,000 deals, the numbers have grown steadily in recent years.
URA caveat data recorded 1,428 sub-sales in 2024, up from 1,294 in 2023, and 765 in 2022. Despite a slight dip to 292 sub-sales in Q1 2025, down from a recent high of 393 in Q4 2023, the trend remains well above pandemic-era lows.
These measures also come amid signs of cooling in the residential property market. Transaction volume saw a sharper correction, plunging 40% quarter-on-quarter from 7,261 units in Q1 to 4,340 units in Q2 2025.
The SSD was originally introduced in 1996 to temper speculative buying and has been adjusted several times since. This latest revision underscores the government’s continued vigilance in maintaining a stable and sustainable property market, especially in the face of ongoing global economic uncertainties and a still-resilient housing demand.
The Seller’s Stamp Duty (SSD) cooling measure affects private residential property owners who purchase a property on or after July 4, 2025 and sell it within four years of acquisition. Specifically, it impacts:
Investors or individuals intending to “flip” properties (especially sub-sales before completion).
Buyers of new launches or resale private homes planning to sell within four years.
Property speculators looking for short-term gains.
Who is not affected:
HDB flat owners, as they are already subject to a 5-year Minimum Occupation Period (MOP).
Owners who sell their private property after holding it for more than 4 years.
Buyers who purchased properties before July 4, 2025, as the new SSD rules do not apply retrospectively.
The revised Seller’s Stamp Duty (SSD) measures will have several implications for property developers in Singapore:
Investors and short-term buyers may hold back from purchasing uncompleted units due to the extended 4-year SSD holding period and higher tax rates.
This could reduce take-up rates at new launches, particularly for mass-market and mid-tier developments that traditionally attract speculative buyers.
Developers may face slower sell-through rates, especially for larger projects.
This may affect their cash flow and increase the cost of holding unsold inventory.
The market may shift towards more genuine, long-term owner-occupiers rather than short-term flippers or speculators.
Developers may need to adjust their marketing strategies and unit mix to cater to end-users.
With weaker speculative demand, developers may face pressure to moderate prices to attract genuine buyers.
Profit margins could be affected, especially for sites acquired at high land costs.
Developers may become more cautious with collective sales and land acquisitions, anticipating a more challenging selling environment.
They may prioritize smaller or phased projects to manage risk.
In summary, while the SSD revision aims to cool speculation, it may result in more cautious demand, impacting the sales momentum, pricing strategies, and development timelines for property developers.
