SINGAPORE - The Singapore government today announced new measures to maintain a stable and sustainable property market, which will take effect by tomorrow, January 14.

From tomorrow, the holding period for the imposition of Seller's Stamp Duty (SSD) will be increased from the current three years to four years.

Currently, for residential properties bought on or after 30 August 2010, SSD is imposed on the sale of such properties within three years of purchase. This followed the introduction of SSD for residential properties bought on or after 20 February 2010.

The SSD rates will also be increased sharply so as to provide a strong disincentive for investors looking to make
short term gains. The impact of the SSD is especially significant as it is payable regardless whether the property is eventually sold at a gain or loss.

For residential properties bought on or after 14 January 2011, the SSD rates to be levied on the full consideration will be increased to as follows:

1. SSD at 16 per cent (higher than up to 3 per cent currently), if the property is sold in the first year of purchase, i.e. the property is held for 1 year or less from its purchase date.
2. SSD at 12 per cent (higher than up to 2 per cent currently), if the property is sold in the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years.
3. SSD at 8 per cent (higher than up to 1 per cent currently), if the property is sold in the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years.
4. SSD at 4 per cent (no SSD currently), if the property is sold in the fourth year of purchase, i.e. the property is held for more than 3 years and up to 4 years.

Currently, the SSD rates are levied at the same rate as buyer's stamp duty, i.e. 1 per cent for the first $180,000, 2 per cent for the next $180,000 and 3% on the balance. The SSD rates are tiered according to the duration of the holding period, i.e. the seller pays the full SSD rate if the residential property is sold in the first year of purchase; 2/3 the full SSD rate if the sale is in the second year; 1/3 the full SSD rate if in the third year.