Seller Stamp Duty Increase in July 2025

Singapore's property market has just seen a significant adjustment on 4th July 2025 : the government has raised the Seller's Stamp Duty (SSD) rates on residential properties and extended the holding period for its application.

These changes are effective for all residential properties purchased on and after July 4, 2025. This move aims to curb rising speculative buying, particularly "property flipping," which has seen a sharp increase in recent years. This will probably affect those new launches from this weekend.

At least they made it easy for us (and RES exam students) to remember that it is on 4th July Independence of a certain Ang Mo country that they made this change 😛 Happy 4th July or not, it is up to individual situation.

The Return to a 4-Year Holding Period and Higher Rates

There are TWO changes specifically.

Change 1 : There is now a Holding Period (Private Condo MOP 😄) of 4 years. This mark a return to the pre-2017 SSD holding period of four years. Unlike a HDB MOP, you can always sell your private property within the 4 years. You just need to pay money lo. No SSD is payable after four years. It's important to note that these changesdo not affect HDB owners due to the minimum occupation period (MOP) for HDB flats.

Change 2 : Under the new regime, the rates have been increased by four percentage points across each tier of the holding period compared to the previous schedule. That means Seller are PAYING more at each tier if you sell earlier.

Here's a breakdown of the new SSD rates (effective July 4, 2025) compared to the previous rates:

Why the Change? A Look at the Background and Reasons

The SSD was first introduced in 1996 to deter rampant speculative buying, especially when one in five transactions involved a sub-sale. After being rolled back, it was reintroduced in 2010 to curb property flipping for profit. The holding period was extended to four years from January 2011 to March 2017, before being reduced to three years in 2017 with corresponding rate reductions.

This latest adjustment is hence technically not considered a new cooling measure in itself, but rather a reinstatement of a policy tool to fine-tune market stability. But you know law, humans don't think of that way (only we agents do...).

The primary reason for the increase is the sharp rise in private residential property transactions with short holding periods, particularly an increase in the sub-sale of uncompleted units.

• The Business Times reported in March 2024 that sub-sale volume rose for a second year in 2023 to 1,294 transactions, marking a 69% jump from the previous year and the highest level since 2013.
• While far from the peak of nearly 5,000 sub-sale units in 2007, these transactions have been "creeping up" and remained "highly profitable".
• Post-pandemic, sub-sale volumes jumped from 765 deals in 2022 to 1,294 in 2023, and further to 1,428 in 2024.
• The increase in sub-sales between 2022 and 2024 is understandable given the strong post-COVID market rebound, with private home prices increasing by a cumulative 26% from 2021 to 2023, motivating some owners to sell early and realize profits.

Implications for Sellers

For those considering selling, especially properties purchased on or after July 4, 2025, these changes will directly impact your potential profits if you sell within four years. While this might lead to a short-term slowdown in resale volume, history shows that SSD does not crash the market.

Sellers are advised to price their properties reasonably to attract genuine buyers. If you are upgrading, the focus should be on your overall gain from both buying and selling, rather than solely on the selling price. Negotiating smartly on both ends is key.

Advice for Buyers and Homeowners Today

This move primarily targets short-term speculative activity, encouraging a longer-term mindset for property investors.

• For Buyers:
  • If you're eyeing new launches, the sources suggest no major impact as land and construction costs are generally locked in for the next two years.
  • For those buying resale for own stay, the market is expected to remain stable due to factors like the Total Debt Servicing Ratio (TDSR), growing incomes, and the fact that most current sellers bought at lower prices.
  • For careful and responsible investing, it's prudent to revisit your investment budget and consider increasing your financial buffer from 18 to 24 months. This aligns with the extended SSD holding period and provides stronger holding power and peace of mind.
  • Current buyer sentiment is generally not speculative, with most buyers adopting a mid to long-term view as genuine homeowners or long-horizon investors. Speculative activity is now considered "almost non-existent".
• For Homeowners:
  • If you purchased your property before July 4, 2025, the previous SSD rules will still apply to you.
  • However, if you are planning future property purchases on or after this date, be mindful of the new holding periods and rates to avoid unexpected stamp duty costs.
  • It's a good time to review your overall property strategy and understand how these changes might affect your long-term financial goals.

In conclusion, the SSD increase in Jul 2025 is a calibrated measure designed to ensure market stability by curbing short-term speculative activities. While it introduces higher costs for quick property turnovers, it reinforces a focus on longer-term property ownership and investment in Singapore.

End of the day we all want a more stable sustainable property market for Singaporeans.