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News Release

Singapore

JLL News Flash | MOF Release on Measures Relating to Residential Property


​​​Seller’s Stamp Duty

The reduction of the holding period of the Seller’s Stamp Duty to 3 years and lowering the rates to between 4 per cent and 12 per cent by itself may not have a significant impact on sales volume as the change is an incremental one from the previous 4 years holding period with rates ranging from 4 per cent to 16 per cent. Over the last few years, buyers had already switched to a mindset of longer term property investment and the reduction of the SSD holding period by 1 year is unlikely to encourage a speculative mindset. For those under financial hardship and need to dispose of their properties, the easing of this measure would reduce or remove the SSD penalty.

 

Total Debt Servicing Ratio (TDSR)

The relaxation of the TDSR for mortgage equity withdrawal loans with LTV ratios of 50 per cent or less is to assist those who need to monetize their assets. It is also not expected have a significant impact on demand.

 

Signal to the market

While the adjustments to the SSD and TDSR by themselves may not have a significant impact on the market, it is the signal that they are sending that is expected to have a positive impact. The policy relaxation is likely to be seen as the beginning of the unwinding of cooling measures and this is expected to lead more buyers back to the market. Buyers would perceive the market as bottoming and be hopeful of a price recovery. Transaction volume which has been increasing in the last two years is likely to pick up further and some upside to prices can be expected.


Stamp duties on transfer of equity interest in entities 

Notwithstanding the imposition of normal stamp duties on transactions involving transfer of equity interest in an entity holding residential properties, there will still be demand from investors in bulk purchases but at a wider discount.

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