We use cookies to tailor your experience and present relevant ads. By clicking “Accept”, you agree that cookies can be placed per our Privacy Policy
ACCEPT
avatar image
Advertisement

Singapore further tightens rules to tackle property price surge

The government increased the stamp duty for those who sell their private homes within four years

Reading Time:2 minutes
Why you can trust SCMP
1
Private home prices in Singapore climbed 0.5 per cent in the second quarter from the previous three months. Photo: AFP
Singapore introduced fresh measures to tame housing prices, raising the stamp duty for those who sell their private homes within four years.

The changes take effect for all private residential properties bought from Friday, according to a joint statement from the Ministry of National Development, Ministry of Finance and Monetary Authority of Singapore late on Thursday.

The holding period for homes which will incur a seller’s stamp duty will be extended to four years from three. The rates payable will rise to 16 per cent from 12 per cent within the first year.

“In recent years, the number of private residential property transactions with short holding periods has increased sharply,” the agencies said in the statement. “In particular, there has been a significant increase in the sub-sale of units that have not been completed.”

The latest move “came as a surprise to us” given the slower pace of price growth and subdued initial demand for new launches, said Citigroup Inc. analyst Brandon Lee. The rationale seems targeted at speculators, a trend that could accelerate with a continued drop in mortgage rates, Lee wrote in a note.

Private home prices in the city state climbed 0.5 per cent in the second quarter from the previous three months, rising for a third straight period. The preliminary figures released earlier this week suggest Singapore’s property market remains resilient even after sales of new homes slowed in recent months.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x