Singapore housing demand seen holding firm despite SSD hike

The bank expects the revised Seller’s Stamp Duty (SSD) to have only a moderate cooling effect in the near term.

Singapore’s latest move to tighten property rules may deliver a short-term dip in domestic housing demand, but market fundamentals remain solid, according to a new report by UOB.

The bank expects the revised Seller’s Stamp Duty (SSD)—which raises rates by four percentage points and extends the minimum holding period for sellers to four years—to have only a moderate cooling effect in the near term.

UOB pointed to supportive conditions including lower interest rates, stable employment, and a healthy pipeline of new housing supply as factors that will continue to underpin buyer confidence and housing demand.

The policy change, which took effect on 4 July, is aimed at curbing speculative activity in the private residential market, particularly the sharp rise in sub-sales of uncompleted units.

Sub-sales had surged to 9.5% of total transactions in Q4 2023, a level not seen since 2011, and remained elevated in Q1 2025 at 4.4%—well above the pre-pandemic average.

Authorities from the Ministry of National Development, Ministry of Finance, and Monetary Authority of Singapore said the move is designed to dampen short-term flipping and reinforce market stability.

The measure follows a series of previous cooling steps, including a hike in Additional Buyer’s Stamp Duty in April 2023.

Although price growth has moderated in the first half of 2025, UOB noted that transaction volumes have picked up, prompting concern that low borrowing costs could re-ignite speculative buying.

Still, the bank views the broader outlook as resilient, highlighting Singapore’s sound economic backdrop and measured housing policy as key buffers.