a day ago
Seller's stamp duty rates for private homes raised; holding period increased from 3 years to 4, Singapore News
SINGAPORE — Sellers of private homes will have to pay higher seller's stamp duty (SSD) rates of between four per cent and 16 per cent if they sell a residential property less than four years after the date of purchase.
The SSD is currently payable by those who sell a residential property within three years of purchase, at rates of between four per cent and 12 per cent.
The Ministry of National Development, Ministry of Finance and Monetary Authority of Singapore announced the longer holding period and higher rates, which will kick in on July 4, in a statement late at night on July 3.
The authorities said that in recent years, the number of private residential property transactions with short holding periods has increased sharply.
"In particular, there has been a significant increase in the sub-sale of units that have not been completed," they said. A sub-sale refers to the sale of a unit to another buyer before the unit is completed.
"Therefore, the Government will revert to the pre-2017 SSD holding period of four years and raise the SSD rates by four percentage points for each tier of the holding period."
The SSD was introduced in 2010 as a deterrent against flipping property for profit.
It was relaxed in 2017, when sellers no longer had to pay SSD if they sell a residential property after a holding period of three years. Before that, SSD was payable if they sold a property after owning it for less than four years.
The latest changes will apply to all residential property bought from midnight on July 4.
They do not affect Housing Board flat owners, owing to the minimum occupation period of at least five years for such flats.
A report by property firm OrangeTee Group in April showed that sub-sales gained traction in 2024, jumping to 1,306 transactions, up from 178 in 2020. Sub-sales accounted for 6.6 per cent of overall non-landed home sales in 2024.
This is the latest measure targeting the private property market.
In April 2023, additional buyer's stamp duty (ABSD) rates were raised for Singaporeans and permanent residents buying their second and subsequent properties. The rate for foreigners buying any residential property was also doubled from 30 per cent to 60 per cent.
The hikes were aimed at preventing property prices from being pushed up by investors, and prioritising Singaporeans buying homes for owner-occupation.
ABSD rates for home buyers and developers were earlier raised in December 2021.
[[nid:719344]]
This article was first published in The Straits Times . Permission required for reproduction.
