Government tightens rules on quick flips

A revision to Singapore's seller's stamp duty (SSD) rules that extends the minimum holding period for residential properties from three to four years is expected to dissuade short-term investors and complicate exit strategies for some buyers, analysts said.

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"Condo construction periods are typically three to four years, and the extension of seller's stamp duty to four years would likely dissuade investors who are only interested to hold and sell after three years," Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield, told Singapore Business Review.

The rule change, which took effect on 4 July, raises seller's stamp duty rates by four percentage points for each tier of the holding period.

For residential properties sold within twelve months of purchase, the rate increased to 16% from 12%. For those sold after a year but within two years, the rate rose to 12% from 8%.

Units sold after two years but within three years now incur an 8% rate, up from 4%, whilst a 4% rate applies to properties sold after three years but within four years-previously exempt.