Singapore just tweaked its Seller’s Stamp Duty (SSD) again. If you buy a residential home on or after 4 July 2025, you must now keep it for at least four years (not three) to avoid paying SSD. Here’s a look at what changed, why it happened, and how it should shape your next property move.

1. What exactly changed?

If you sell your property...

≤1 year after purchase -> 16% SSD

1-2 years after purchase -> 12% SSD

2-3 years after purchase -> 8% SSD

3-4 years after purchase -> 4% SSD

>4 years after purchase -> 0% SSD

(Note that the above only applies if you purchased a residential home on or after 4 July 2025)

2. Why did the Government tighten SSD?

The main purpose of tightening the SSD is to prevent a strong surge in property supply in 2028. There will be 7 new launches slated for H2 2025 alone, which adds up to roughly 4,725 units. If the old SSD rules applied, owners who purchased their new homes in 2025 would start to sell their properties in 2028 through sub-sales (before TOP) or otherwise, in order to cash out and take profit. This can be seen from how sub-sales rose from 0.9 % of deals (2020) to 6.8 % (2023), and still stood at 4.5 % in Q2 2025. 

Furthermore, coupled with the HDB flats which finish their MOP in 2028, the surge in supply will be significant — Fundamentals of economics tell us that when supply is more than demand, the price of properties will then fall and de-stabilize. This destabilization is not ideal because price whiplash invites short-term “bottom-fishing” and not long-term ownership. This basically means that more people will speculate on changes in property prices, which the government wants to avoid. The State prefers predictable pricing so families can plan with confidence, and not gamble on timing. 

Hence, by applying this rule, homeowners are deterred from sub-selling at the 3-year mark and instead hold on for another year in order to avoid SSD — this results in the supply being pumped into the market over 2028 and 2029, reducing downward pressures on property prices and keeping the prices stable.

3. Who really feels the pinch?

For Forever-Home owners, there is no real impact – since they do not intend to sell ≤ 3 yrs anyway. For general owners and investors, they must budget an extra year of mortgage, MCST fees (~S$300-600/mth), and property tax before cashing out — it is important to stress-test cash flow for 4 full years. Ensure that value appreciation and rental yield in the 4th year outweigh the mortgage costs, MCST fees, and annual tax.

4. What can buyers & owners do?

a. Plan for a 4-year lock-in (Stress-test cash flow) – make sure emergency funds cover four full years of mortgage, MCST, and tax — budget for an extra year of MCST, mortgage, and annual tax.

b. Prioritise rental resilience (Product selection) – city-fringe units with big tenant pools and strong rental yield (e.g. Marine Parade, Kallang, Geylang) help offset that extra year.

c. Stress-test yields – aim for cash-flow that at least covers interest + fees, not “capital-gain only” bets.

d. The extra 12 months is extra 12 months of value growth and rental yields versus MCST and property tax — the former needs to outweigh the latter, so it’s important to identify city-fringe projects with lower maintenance fees, stronger rental yields, and strong growth trends.