In response to rising speculation within the property market, the government has announced an extension of the Seller’s Stamp Duty (SSD) holding period from three years to four years, effective July 4, 2025, at 12am. This significant policy change is designed to address the increasing trend of rapid property flipping that has been observed in recent months. By extending the holding period, the government aims to discourage speculative buying and stabilize the real estate market, which has seen a notable uptick in private residential property transactions characterized by short holding periods.
The revised SSD rates have also seen an increase of four percentage points across all tiers. The new rates will now stand at 16%, 12%, 8%, and 4%, marking a substantial rise in costs for sellers who choose to dispose of their properties within the newly stipulated four-year timeframe. This adjustment is a return to the pre-2017 SSD framework, which previously featured a longer holding period and higher rates. The government’s decision reflects a broader strategy to ensure that the property market remains sustainable and is not overly influenced by short-term speculation.
The extension of the SSD holding period and the increase in rates are likely to have considerable implications for both buyers and sellers in the property market. For potential sellers, the additional year of the holding period may compel some to reconsider their plans for property sales, especially if they are motivated by short-term profit. Buyers, on the other hand, may find themselves in a position where they need to factor in these new costs when making decisions about property investments. This could lead to a cooling effect in the market, as buyers and sellers adjust their strategies in response to the revised regulations.
This policy change arrives at a time when the government is closely monitoring the property market’s dynamics. With the rise in property transactions occurring within short durations, authorities are keen to ensure that the market does not succumb to volatility driven by speculative activities. By implementing these measures, the government signals its commitment to fostering a balanced and stable property market environment.
Stakeholders in the real estate sector, including property developers, real estate agents, and potential investors, are expected to scrutinize these developments closely. Industry experts suggest that the longer holding period and higher tax rates may encourage a more cautious approach to property transactions. This could potentially lead to a healthier market, where investments are driven by long-term value rather than short-lived gains.
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News Source: Edgeprop
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