Higher seller's stamp duty a 'light touch' to curb property flipping: Experts, Money News
These measures, set to kick in for all private homes purchased on and after Friday (July 4), will not dampen demand among genuine buyers, several experts told AsiaOne.
The Ministry of National Development (MND), Ministry of Finance (MOF) and Monetary Authority of Singapore (MAS) said that the holding period for private properties will increase from three to four years.
Homeowners will also have to pay higher SSD rates of between four per cent to 16 per cent if they sell their private homes within four years of the purchase.
MND, MOF and MAS noted the measures come after that there has been a "significant" increase in sub-sale of units that have not been completed.
Sub-sale transactions refer to homeowners selling their properties before it is completed.
Chief Researcher and Strategist of Realion Group Christine Sun said that according to data from the Urban Redevelopment Authority, the number of such transactions for non-landed private homes has been increasing in recent years.
There has been an average of 220 sub-sale transactions from 2020 to 2025, higher than the average of 88 seen from 2015 to 2020.
Echoing Sun's observations, ERA Singapore CEO Marcus Chu said that there since 2021, there had been a "significant jump" in sellers who sold their homes after holding them for between three and four years.
He added that in 2020, only 358 people sold their non-landed private residential properties after holding them for three to four years, compared to 2024, which saw a peak of 2,104 sellers.
Chu, as well as head of research and data analytics at Singapore Realtors Inc Mohan Sandrasegeran, said that a majority of homeowners continue to sell their properties after holding them for five years or more.
"Generally, most private home buyers are already holding for longer than four years, the adjustment targets short-term speculators, helping to discourage rapid turnover and flipping," added Sandrasegeran. Limited impact
Property experts told AsiaOne that the measures will have a limited impact on the private home market, with genuine buyers and long-term investors unlikely to be affected.
Sun said that while the number of sub-sale transactions is higher than before the pandemic, the quarterly transactions have been on a downtrend over the past few quarters.
"Furthermore, most condominiums are purchased for owner-occupation, especially after the additional buyer's stamp duty has been raised several times.
"Those who buy properties for their own use will not be affected by the increased SSD, as they are likely to stay in the property for the long term," she added.
Realion Group's Sun said that the policy changes were "probably" introduced as a preventive measure to limit speculative growth, since more condominiums are due to obtain their Temporary Occupation Permit (TOP).
The number of sub-sale transactions might rise in line with the anticipated increase in private residential units securing TOP, which is projected to grow from 5,920 units in 2025 to 6,838 units in 2026 and further to 10,306 units in 2027, according to Sun.
She also noted that several new projects are expected to be launched in the coming months, adding lower interest rates also make housing loans more affordable -- spurring buying activity.
Meanwhile, Chu said that buyers have become more cautious due to the economic uncertainty, and more now see property as a long-term investment.
"Since most homebuyers are genuine owner-occupiers or longer-term investors, this measure is a gentle touch rather than a heavy-handed approach on the overall market. It aims to stabilise any spikes caused by short-term investors," he added.
"It is not designed to crack down on the market but to reduce the froth from investors who sell shortly after the third year."
Sandrasegeran said that genuine home buyers can further benefit if the Government introduces further policy changes, such as reducing, or even removing entirely, the 15-month wait-out period for private homeowners seeking to buy a resale HDB flat.
The housing board previously said that 25 per cent of the 5,500 appeals for waiver from 2022 to March 2025 have been successful.
"The SSD revision would not be negated by such a change. It will act as an added safeguard to prevent opportunistic exits from the private market," he added, while pointing out households who are motivated to "right-size" due to life transitions or financial constraints will benefit from such a move.
"Together, these policies support both ends of the housing spectrum, with the SSD helping to curb speculative activity, and a potential relaxation of the wait-out period offering flexibility for those with genuine housing needs."
Leonard Tay, Head of Research, Knight Frank Singapore, suggested further policy changes if the number of sub-sale transactions continue to increase.
"It would not be too much of a stretch of the imagination to wonder whether the Government might even go so far as to consider imposing a Minimum Occupation Period in the private home market, similar to that applied to HDB flats," he said.
[[nid:719806]]
chingshijie@asiaone.com
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