Singapore tightens property measures to cool housing market

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 purchased 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% from 12% 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.”

Private home prices in the city-state climbed 0.5% 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.

Singapore has sought to tackle the property price surge in recent years, prompting authorities to implement cooling measures. This included higher levies on foreign purchases in 2023 and adding curbs on public housing last year.

Cost-of-living pressures including housing affordability were among key concerns raised by voters in the lead-up to a national election held in May.

The revised levies will not affect public housing owners as they are already subject to a minimum occupation period for their homes.