The higher stamp duty put in place since 2011 has led to hefty losses for some home sellers.
More than $70 million has been collected in seller’s stamp duty (SSD) for non-landed private property transactions since 5 years ago.
Since 14 Jan 2011, all properties sold within four years of its purchase would have incurred the higher SSD of 4% to 16%.
Properties sold within their first year of purchase would have to pay the maximum SSD of 16%, while those sold within two, three and four years of purchase would pay 12%, 8% and 4% respectively.
The higher SSD was put in place to discourage property speculation by motivating buyers to take a longer-term stance on their investment.
In the past year, at least 59 non-landed private home transactions suffered a loss after paying the SSD. For instance, a unit at Four Seasons Park incurred a total loss of $2.64 million after paying a 12% SSD of $1.14 million.
Mr Nicholas Mak, head of research and consultancy at SLP International said that these sellers choose to sell their homes despite a loss to reduce any further losses due to the market downturn.
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Conversely, you might also be interested in finding out how homebuyers have benefitted from new rules by URA.
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