Overview of the Policy Change
Effective from July 4, 2025, Singapore has increased the Seller’s Stamp Duty (SSD) rates and extended the minimum holding period for private residential properties. These changes are aimed at curbing speculative activity and stabilizing the property market, following a sharp rise in short-term property transactions and sub-sales of uncompleted units.
New SSD Rates and Holding Period
The revised SSD applies to all private residential properties purchased on or after July 4, 2025. The key changes are:
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Holding period extended from 3 years to 4 years.
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SSD rates increased by 4 percentage points for each tier.
| Holding Period | SSD Rate (from July 4, 2025) | Previous SSD Rate (till July 3, 2025) |
|---|---|---|
| Up to 1 year | 16% | 12% |
| Over 1 year and up to 2 years | 12% | 8% |
| Over 2 years and up to 3 years | 8% | 4% |
| Over 3 years and up to 4 years | 4% | 0% |
| Over 4 years | 0% | 0% |
SSD is calculated on the higher of the selling price or market value at the time of sale.
Rationale for the Changes
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Increase in Short-Term Transactions: Authorities observed a significant rise in private residential property transactions with short holding periods, especially sub-sales of uncompleted units.
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Curbing Speculation: The government aims to deter speculative “flipping” of properties, which can lead to price volatility and affect housing affordability for genuine buyers.
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Return to Pre-2017 Framework: The new structure reverts to the pre-2017 SSD regime, which also had a four-year holding period and higher rates.
Impact on Different Groups
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Private Home Sellers: Owners selling within four years of purchase will face higher SSD, making short-term sales less attractive.
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HDB Flat Owners: No impact, as HDB flats are already subject to a five-year Minimum Occupation Period.
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Sub-Sale Market: The move is expected to moderate the recent surge in sub-sale transactions, which accounted for 6.6% of non-landed private home sales in 2024.
Additional Context: Buyer’s Stamp Duty
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In April 2023, the Additional Buyer’s Stamp Duty (ABSD) was also raised, with foreigners now paying 60% ABSD and Singaporeans paying 20% on their second property. These measures complement the SSD changes to ensure a stable property market.