04/07/2025
*📣 Government Reintroduces Higher Seller’s Stamp Duty (SSD) from 4 July 2025*
Last night, the government announced an increase in the Seller’s Stamp Duty (SSD) on residential properties, *effective from 4 July 2025*, to curb property flipping.
This move was not totally unexpected, especially given the *rising trend of sub-sale* activities in recent years.
📊 Sub-sale Transactions (Volume)
Year
Sub-sale Volume
2022 - >700 units
2023 - >1200 units
2024 - >1400 units
Q1 2025 - 292 units
📈 Private Property Price Index Growth
Year
Price Index Growth
2021- 10.6 %
2022- 8.6%
2023- 6.8%
2024- *3.9%*
2025 (1H)- *1.3%* (YTD)
🔍 Policy Context and Impact
The *SSD revision is not considered a new cooling measure* per se. Rather, it is the reinstatement of a policy tool that was previously in place. From 2010 to 2017, the SSD holding period was 4 years, before being reduced to 3 years in 2017. The government has now *reverted back to a 4-year SSD, using it as a lever to fine-tune market stability*.
Here’s the updated SSD tier with effect from 4 July 2025:
Holding Period
New SSD Rate
< 1 year-16%
> 1 to ≤ 2 years-12%
> 2 to ≤ 3 years-8%
> 3 to ≤ 4 years-4%
> 4 years- 0%
🧠 Market Sentiment & Observations
The increase in sub-sales between 2022 and 2024 is understandable, given the strong post-COVID market rebound. From 2021 to 2023, private home prices *increased by a cumulative 26%*, motivating some owners to sell early and realise profits.
However, in today’s market climate:
• Price growth has *moderated significantly* since 2024.
• The first half of 2025 shows *only a 1.3% increase*.
• Current buyer sentiment is *not speculative* in nature.
• Most buyers today adopt a *mid to long-term view*—as genuine homeowners or long-horizon investors.
✅ Conclusion
This *SSD revision is a calibrated measure, not a broad-based cooling action*. It is unlikely to have any significant impact on the current real estate market, where *speculative activity is now almost non-existent*.
