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 - 321 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 2011 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.
🧠 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.
