Latest news with #MinistryofNationalDevelopment
AsiaOne
3 days ago
- Business
- AsiaOne
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.
Straits Times
4 days ago
- Business
- Straits Times
Seller's stamp duty rate for private residential properties raised
Sign up now: Get ST's newsletters delivered to your inbox The latest changes will apply to all residential property purchased on and after 12am on July 4. SINGAPORE - Sellers of private homes will have to pay higher seller's stamp duty (SSD) rates of between 4 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 4 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. 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 fewer than four years. Top stories Swipe. Select. Stay informed. Singapore 193ha of land off Changi to be reclaimed for aviation park; area reduced to save seagrass meadow Business More Singapore residents met CPF Required Retirement Sum when they turned 55 in 2024 Singapore PAP questions Pritam's interview with Malaysian podcast, WP says PAP opposing for the sake of opposing Singapore 1 in 4 appeals to waive HDB wait-out period for private home owners approved since Sept 2022 Sport A true fans' player – Liverpool supporters in Singapore pay tribute to late Diogo Jota Singapore Healthcare facility planned for site of Ang Mo Kio Public Library after it moves to AMK Hub Singapore $500 in Child LifeSG credits, Edusave, Post-Sec Education Account top-ups to be disbursed in July The latest changes on July 4 will apply to all residential property purchased on and after 12am on July 4.
CNA
4 days ago
- Business
- CNA
Singapore private property owners who sell homes within 4 years must pay seller's stamp duty
SINGAPORE: Private property owners who sell their homes within four years will incur a seller's stamp duty, the Ministry of National Development (MND) announced on Thursday (Jul 3). The seller's stamp duty (SSD) holding period will increase to four years, up from three years. The SSD rates will also increase by 4 percentage points for each tier of the holding period, the ministry changes will take effect for all residential properties purchased on and after Jul 4, 12am. The revised SSD will not affect HDB owners due to the Minimum Occupation Period for HDB flats, MND said. The SSD is payable by those who sell a residential property within a specified period after purchase. In 2017, this period was reduced from four to three years, and the SSD rates were also reduced by four percentage points for each tier of the holding period, said MND. 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, it added. 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, it said.
Business Times
4 days ago
- Business
- Business Times
Government raises seller stamp duties on residential properties to curb rise in ‘flipping'
[SINGAPORE] The government moved to curb rising speculative buying in Singapore's residential property market, increasing the seller's stamp duty rates by 4 per cent and extending the holding period that SSD applies from three to four years. These changes will take effect for all residential properties purchased on and after Jul 4, 2025, 12.00am, the Ministry of National Development, Ministry of Finance and Monetary Authority of Singapore said in a statement late Thursday (Jul 3) night. The authorities said: 'The revised SSD will not affect HDB owners due to the Minimum Occupation Period for HDB flats.' '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.'
Business Times
18-06-2025
- Business
- Business Times
Singapore acts to draw developers back to state land tenders
[SINGAPORE] Despite the uncertain global economic and political climate, the government will continue to provide stable land supply for private housing development in the second half of this year. Last Friday (Jun 13), the Ministry of National Development (MND) said it will release land for about 4,725 private housing units in H2 2025 through the confirmed list, a 6 per cent drop from the 5,030 units in H1 2025. These figures include executive condominium (EC) units, a public-private housing hybrid, with initial buyer eligibility and resale restrictions that are completely lifted 10 years after an EC project has been completed. Beyond the numbers, what is more important is that developers are being offered an appealing selection of plum sites that is likely to draw more of them to participate in government land sales (GLS) tenders than in the past 15 months. After all, it is only when these sites are sold to developers can the intended private housing supply be actualised and cater to home buying demand. This includes aspirational upgrading demand from those living in Housing & Development Board flats. Under the GLS programme, property developers are offered land through two channels. On the confirmed list, sites are launched for sale according to schedule, regardless of demand. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up In contrast, sites on the reserve list are launched for sale only upon successful application by a developer, or when there is sufficient market interest. By market watchers' reckoning, the package of sites MND has put together for the next-half confirmed list is so attractive that developers are unlikely to trigger for sale sites on the reserve list. All 10 residential sites – including two EC plots – on the H2 confirmed list are new. They offer a wide range of choices for developers. There are sites in the prime districts (next to Newton MRT station, and in Dunearn Road) and in city-fringe areas (in Tanjong Rhu Road, next to Singapore Swimming Club; and a plot in Kallang Avenue facing the waterway). There are also well-located plots in the suburbs (a site in front of Tanah Merah MRT station, another a stone's throw from Lentor MRT station and an EC site near Woodlands South MRT station). MND will also be offering a private housing site near Dairy Farm Nature Park, and an EC site in Miltonia Close facing a golf course and the Lower Seletar Reservoir. The new projects on these two sites may attract home buyers who prefer to live in a more nature-oriented setting. Bite-sized and more manageable sites The appeal of the latest confirmed list for developers is not only that it has a spread of eye-catching sites but that most of these are relatively bite-sized, making the total investment more manageable. There are no mega sites that can yield 700 to 1,000 housing units as seen in GLS tenders over the past few years. Five of the 10 plots on the H2 confirmed list can yield between 335 and 450 units. The parcel that can generate the most homes, 625 units, is in Dover Road. It has strong selling points: It is near the one-north MRT station and a string of educational institutions, from Fairfield Methodist School (Primary) and Anglo-Chinese Junior College to the Insead and Singapore Institute of Technology @ Dover campuses. The combination of well-located sites and palatable sizes is calculated to pull more developers to state tenders. The competition will raise the likelihood that the respective top bids will be high enough for the state to award the plots. Developer participation at state land tenders has been patchy in recent times. Excluding EC sites, tenders have closed for 21 sites under MND's GLS Programme over the past 15 months. Of these, 10 sites fetched either one or two bids. Two of these 10 sites were not awarded as the bids were assessed to be too low: the Jurong Lake District (JLD) master developer site and the Media Circle site for which the entire residential component is to comprise long-stay serviced apartments. There were also a couple of sites – out of the pool of 21 – that did not garner any bids: Upper Thomson Road (Parcel A), which included a mandatory long-stay serviced apartment component, and Media Circle (Parcel B). The tender for Upper Thomson Road (Parcel A) will be launched again this month, under the H1 2025 confirmed list; this time, long-stay serviced apartment use will not be mandated but can be allowed subject to approval. The other three plots – the JLD master developer site, Media Circle and Media Circle (Parcel B) – are available on the reserve list. Industry feedback on JLD master developer site Those poring through the details of the latest GLS Programme would have spotted an interesting nugget of information in a footnote pertaining to the JLD master developer site on the reserve list. The 6.5-hectare site, zoned white, was previously launched for tender under the H1 2023 confirmed list but not awarded. The minimum office quantum required for Phase 1 of the master developer site has been cut from 70,000 square metres (sq m) gross floor area (GFA) to 40,000 sq m. A spokesperson for the Urban Redevelopment Authority (URA) told The Business Times on Friday night that the minimum office quantum for the entire site, too, has been reduced from 146,000 sq m GFA to 100,000 sq m. The changes were made in end-2024 following extensive engagements with industry stakeholders after URA announced the decision in September last year not to award the tender for the site. The master developer site, meant to kickstart the next phase of development in JLD, was put on the market under a dual-envelope concept-and-price tender launched in June 2023. The tender closed in March 2024 with a consortium of five developers – comprising CapitaLand Development, City Developments, Frasers Property, Mitsubishi Estate and Mitsui Fudosan (Asia) – submitting two bids, with different concept proposals for the site. There were no other bidders. Six months later, URA said the tendered price of S$640 per square foot per plot ratio for the shortlisted concept was assessed to be too low. The site was then placed on the reserve list. URA has envisioned JLD as the 'largest mixed-use business district outside the city centre'. Industry players, however, have reservations about the depth of office demand in the vicinity of Jurong East MRT station. Generally, big-name tenants prefer to have their Singapore offices in prime Central Business District (CBD) locations such as Marina Bay and Raffles Place. Key factors cited include the prestigious address, talent retention, C-suites' preference, and employee commuting time tends to be more equitable from all corners of the island to the CBD. Despite the reduction in the minimum office quantum requirement, the maximum GFA for the entire master developer site remains unchanged at 365,000 sq m. However, the maximum residential GFA for the overall site has been increased to 186,000 sq m, of which a maximum 166,000 sq m can be for private apartments/condos. Both these figures are 20,000 sq m higher than the original numbers when the site was launched. Being allowed flexibility to develop a bigger quantum of private apartments/condo units which can be presold should positively impact a potential master developer's cashflow, noted analysts. URA's spokesperson said the reduction of the minimum office quantum requirement was made to 'provide developers with more flexibility in determining the mix of uses and to better pace the roll-out of office space for the master developer site'. For private housing sites, too, the authorities have been taking heed of developers' participation rates at GLS tenders, how they make a beeline for choicer sites and give mediocre sites a miss. Developers have also been giving feedback that sites that can generate fewer than 500 housing units would be more palatable. URA engaging developers and other stakeholders to better understand the market dynamics is definitely a step in the right direction, especially in the current uncertain environment.
