Singapore Tightens Property Rules: higher Stamp duties to Curb Speculation
Singapore, July 3, 2024 – In a move aimed at cooling the private property market and curbing short-term speculation, Singaporean authorities announced late Wednesday a significant increase in Seller’s Stamp Duty (SSD) rates and a return to a four-year holding period for residential properties. The changes,effective midnight July 4th,will see SSD rates ranging from 4% to 16% for those selling within four years of purchase.
Currently, SSD is levied on properties sold within three years of acquisition, with rates between 4% and 12%. The Ministry of National Progress, Ministry of Finance, and Monetary Authority of Singapore cited a sharp rise in transactions involving short holding periods, particularly “sub-sales” – the sale of units before completion – as the primary driver for the policy shift.
“In particular, there has been a significant increase in the sub-sale of units that have not been completed,” a joint statement from the ministries read. The government is essentially reverting to pre-2017 SSD rules, aiming to disincentivize fast property flips for profit, a practice the SSD was originally designed to deter.
Key Changes:
Holding Period: Increased from three years to four years.
SSD Rates: Increased by 4 percentage points across all tiers.
Effective Date: July 4, 2024 (midnight).
Exemptions: The changes do not affect housing Board (HDB) flat owners due to the existing five-year minimum occupation period.
Data from OrangeTee Group highlights the growing trend of sub-sales, with transactions jumping from 178 in 2020 to 1,306 in 2024, representing 6.6% of all non-landed home sales this year. This latest measure builds on existing efforts to moderate the private property market and ensure long-term stability.
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