Singapore, 4 July 2025 – The Government has announced two changes to the Seller’s Stamp Duty (SSD) for residential properties:
(a) An increase in the holding period from three to four years, and
(b) increase of the SSD rates by 4% for each tier of the holding period.
These changes took effect for all residential properties purchased on and after 4 July 2025, 12.00am. The revised SSD will not affect HDB owners due to the Minimum Occupation Period for HDB flats.
This reversion to the pre-2017 SSD holding period of four years aims to reduce speculative demand. It does so by lowering the number of sellers who flip their homes after just three years.
According to IRAS, the SSD of a residential property is payable for properties acquired after 20 Feb 2010. In most instances, the date of purchase/ acquisition of a property refers to:
- Date of Acceptance of the Option to Purchase* or
- Date of Sale and Purchase Agreement or
- Date of Agreement for Lease (for new HDB flat) or
- Date of transfer to a beneficiary where the property was originally held on trust for non-identifiable beneficial owner(s) or
- Date of Transfer where the above (a), (b), (c) and (d) are not applicable
*Excludes an Option to Purchase that is subject to the execution/ signing of the Sale and Purchase Agreement
What does it mean?
“These adjustments to the SSD framework will help reduce speculative activity. Although they will affect only a small minority of buyers, we welcome the changes. We believe they will complement broader measures, such as increasing land supply, to foster a sustainable market.
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 stabilize any spikes caused by short-term investors. Moreover, it is not designed to crack down on the market but to reduce the froth from investors who sell shortly after the third year.
Notably, the elevated interest rates since September 2022 have eroded meaningful profits for property investors. This may have led them to extend their holding periods. Especially now that interest rates have eased in recent months.
The property tax revisions introduced in 2023 have also resulted in higher taxes on non-owner-occupied residential properties. This may have contributed to this trend as well.
Investors have shifted towards a medium- to long-term holding strategy to increase rental income while waiting for prices to reach their preferred levels before selling. This requires greater endurance. However, most now have that capacity and plan their exit strategies accordingly,” said Marcus Chu, Chief Executive Officer, ERA Singapore.
Table 1: Seller Stamp Duty Schedule
Source: MND, MOF, MAS, ERA Research and Market Intelligence
With the higher Additional Buyer’s Stamp Duty tiers introduced in April 2023, the residential landscape has shifted largely towards domestic and owner-occupier demand. Coupled with heightened economic uncertainty in recent months, buyers have become more prudent, and more are viewing property as a long-term investment. We are likely to see property investors, who often buy and sell their units within three years, to be most impacted by this move. However, the majority of homebuyers, who are owner-occupiers, are unlikely to be affected by this change.
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