Will Changes in Seller’s Stamp Duty Affect the Property Market?

On the evening of 03 Jul 2025, the Singapore government announced changes to the Seller’s Stamp Duty (SSD), with higher duties and longer holding period kicking in hours later, from the midnight of 04 Jul 2025.

With this recent change, you’re likely wondering how these changes will reshape the property market. This policy is designed to curb speculative buying and stabilize property prices, but what does that mean for investors and homebuyers? Understanding the target market for this shift and the potential impacts can reveal key insights into the market’s future direction.

Higher Seller’s Stamp Duties

The Ministry of National Development announced the new SSD rates, ranging from 4% to 16% over a four-year holding period, serve to deter speculative transactions that have surged in popularity.

There is an increase of 4% across the board throughout every tier of all the holding periods from 0 to 4 years.

Longer SSD Holding Period

There are many ‘short term’ investors who like to buy and ‘flip’ several (usually three) years later for a tidy profit. But this ‘short term’ period is going to become longer, with longer holding period as a requirement for private residential property sellers who want to sell without incurring a Seller’s Stamp Duty.

Previously, private property sellers will not incur SSD so long as they hold the property for a minimum of 3 years. Now, from 04 Jul 2025, they have to hold for at least 4 years to not be taxed for SSD.

Which Groups Will Likely Be Affected By This SSD Change?

Who stands to be most affected by the recent changes in Seller’s Stamp Duty (SSD) regulations?

• Speculative buyers

Those who are looking to profit and sell quickly. But an increase from 3 to 4 years is incremental, and likely not the big blow that some may make this out to be.

• Those who are about to purchase a private residential property but haven’t done so

If you haven’t recently purchased a property, this SSD change may make you reconsider your decision making process in terms of timing and whether to enter the market.

• Those who are going to purchase a private residential property in the coming weeks and few months

This group will be well aware that they have to hold onto their properties for at least 4 years now. While this may only seem like delaying the selling timeframe for selling properties by a year, there may be a result of either a sudden surge of selling after finally holding out for 4 years, or a slowing desire to sell ‘quickly’, since 4-5 years is no longer ‘quick’ and property owners may want to bide their time for the right sell.

• Those who plan to purchase a resale residential property in the next 3-4 years

This SSD update will likely influence the future supply in 3-4 years’ time, when today’s purchasers will still be seeing out their SSD holding period. So whether this has an impact on the sellers’ market will also influence the future buyers too.

What to Expect Next?

Expect transactions with shorter holding periods to decrease, prompting a shift towards more strategic, long-term investments. Consequently, this may favour genuine homebuyers over investors, fostering a healthier market environment. Ultimately, these SSD adjustments could signal a strong governmental intent to sustain property market resilience and combat unsustainable price fluctuations.

Property investing behaviour may be reshaped, steering away from short-term speculative buying. This policy aims to create a more stable property market, favouring long-term investment strategies which will benefit own-stay homebuyers.