{"id":87466,"date":"2025-07-11T10:56:40","date_gmt":"2025-07-11T02:56:40","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=87466"},"modified":"2025-07-11T10:56:40","modified_gmt":"2025-07-11T02:56:40","slug":"ssd-hike-2025","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/ssd-hike-2025\/","title":{"rendered":"Seller Stamp Duty back up due to new launch sub-sales? We deep-dive into the details of this policy hike"},"content":{"rendered":"
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The Seller\u2019s Stamp Duty (SSD)<\/a> was first introduced in 1996 to curb rampant short-term investment activity in Singapore’s private housing market. The framework has seen multiple changes over the years; including a rollback and a reintroduction in 2010. The 2025 revision, however, marks the most substantial tightening of SSD rules since 2017.<\/span><\/p>\r\n\r\n\r\n\r\n

We have already captured the <\/span>impact of the policy change<\/span><\/a> on new launches and the tertiary sub-sale market. In this deep dive, we examine in detail what led to the SSD hike, where the sub-sale market has grown disproportionately, and how this latest update hopes to reset buyer behaviour.<\/span><\/p>\r\n\r\n\r\n\r\n

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Table of contents<\/h3>\r\n
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  • The anatomy of a sub-sale: Where, when, and how<\/a>\r\n
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    • Okay, this sounds perfectly normal. Why is this an issue, again?<\/a><\/li>\r\n
    • And let\u2019s be real, sub-sales can bring in really good profits<\/a><\/li>\r\n
    • So are sub-sales a concern only when they cause losses?<\/a><\/li>\r\n
    • Has Singapore ever gone through this bubble before?<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n
    • And we have seen sub-sales spike recently as well.\u00a0<\/a><\/li>\r\n
    • So, if the latest spike was mostly due to COVID, then was a policy revision necessary?\u00a0<\/a><\/li>\r\n<\/ul>\r\n<\/div>\r\n\r\n\r\n\r\n

      The anatomy of a sub-sale: Where, when, and how<\/b><\/h2>\r\n\r\n\r\n\r\n

      Before diving into the causes behind the rise of sub-sales, it’s important to understand what defines a sub-sale and how it differs from a resale.<\/span><\/p>\r\n\r\n\r\n\r\n

      A sub-sale refers to the transaction of a private residential unit before it obtains its Temporary Occupation Permit (TOP).<\/a> In contrast, a resale occurs after TOP, once the property is completed and issued its official occupancy status. The classification depends on construction status of a given project: If the unit is still under development, the sale is logged as a sub-sale.<\/span><\/p>\r\n\r\n\r\n\r\n

      Sub-sales typically occur when a buyer who originally purchased a unit directly from the developer decides to sell it to another buyer before taking possession. The incoming buyer inherits the original Sale and Purchase Agreement (S&PA)<\/a> terms, but the developer must now issue a fresh S&PA to this new party.<\/span><\/p>\r\n\r\n\r\n\r\n

      In contrast, resale transactions involve completed units, often several years post-TOP, and are handled directly between the seller and buyer, without the developer\u2019s reissuance of contracts.<\/span><\/p>\r\n\r\n\r\n\r\n

      Okay, this sounds perfectly normal. Why is this an issue, again?<\/b><\/h3>\r\n\r\n\r\n\r\n

      Sub-sales, at a glance, are just another form of property transaction. You could even frame it as savvy investing or portfolio reshuffling. The issue lies not in the act of sub-selling itself, but in the market psychology it fuels.<\/span><\/p>\r\n\r\n\r\n\r\n

      Let\u2019s say you have a condo in a new launch project which you would like to sell in the future. You see that someone just sold a unit in the same project for S$1.6 million, before the unit was even completed!\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

      Suddenly, every other seller in that area, including you, starts to think that their unit should also fetch a similar price, or higher. Prices start to rise not because of real demand, but because of <\/span>an expectation of profit.\u00a0<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

      And let\u2019s be real, sub-sales can bring in really good profits<\/b><\/h3>\r\n\r\n\r\n\r\n

      That\u2019s because sub-sellers typically buy units at early-bird launch prices, when developers are still trying to meet minimum sales quotas. These units often come with early discounts or incentives. If the project sells out quickly or sentiment improves before the TOP, sub-sellers can sell their units at a premium, without ever living in them or paying much in holding costs.<\/span><\/p>\r\n\r\n\r\n\r\n

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      Let me put on my realtor hat and help you with the math.<\/p>\r\n

      Imagine Mr. X picked up an OCR condo unit at S$1.5 million in 2020 during a new launch, and sold it in 2023 before the project completes for S$1.8 million. There would be no mortgage to pay, due to the progressive payment scheme. And no ABSD, as this is Mr. X\u2019s first purchase. Even after factoring in Seller\u2019s Stamp Duty at 4% (as per the old 2017-2025 rates), legal fees, agent commission, and other expenditures, that’s still a potential net gain of about S$250,000 in three years.\u00a0<\/span><\/p>\r\n<\/div>\r\n\r\n\r\n\r\n

      And this isn\u2019t hypothetical.<\/span><\/p>\r\n\r\n\r\n\r\n

      According to <\/span>reports<\/span><\/a>, the average profit made on sub-sales in 2024 was around S$270,000. Some standout sub-sales include:<\/span><\/p>\r\n\r\n\r\n\r\n

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      • A unit at Boulevard 88<\/a>, purchased in March 2019 and sub-sold in April 2023, which yielded a whopping S$3.9 million in gains<\/span><\/li>\r\n\r\n\r\n\r\n
      • A unit at Marina One Residences<\/a>, sold for over S$2 million in profit within a few years of launch<\/span><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n

        But of course, not all sub-sales end with champagne. In 2024, 17 sub-sale transactions were unprofitable, with average losses of around S$90,000. Some of the more painful examples include a S$297,600 loss at Riviere, and a S$132,000 loss at Sky Everton<\/a>.<\/span><\/p>\r\n\r\n\r\n\r\n

        Interestingly, 8 out of those 17 loss-making sub-sale occurred before the SSD period had expired, indicating that sellers were likely under financial pressure and couldn\u2019t wait out the minimum holding period.<\/span><\/p>\r\n\r\n\r\n\r\n