Singapore Expats

Yes, a CGT is actually more effective but they also have the SSD (Seller Stamp Duty) - IMO it would be a better tool to modify as it encourages long term holding rather than flipping. I expect we will see a change in SSD actually.

SSD alone isn't really that much of a deterrent. Most people (even investors) are going to hold the property beyond three years. CGT is similar, although it would remove one friction when someone needs to sell relatively soon but doesn't have large gains. CGT is probably better aligned/fairer for the en bloc situation as well (SSD is another friction to buying old properties, which probably reduces liquidity).

ABSD is likely a much stronger deterrent to people acquiring large blocks of properties (or non-SC/PR buying at all); whether this is justified or creates other problems is a separate argument.

I honestly don't think they know what they're doing or there are internal PAP divisions on this.

Both may be true?

Here are some stats on the last 15 years (2010-2024):
US Shares (S&P 500) = 13.7%
Ex-US Shares (in USD) = 5.8%
US property (Case Shiller) = 5.4%
US Inflation = 2.6%
Singapore Property (non-landed, all segments) = 5.2%
Singapore Property CCR (non-landed) = 3.7%
Singapore Inflation = 2.1%

Property movements tend to come in booms and busts. This was a while ago, but over extended periods of time, I believe a lot of markets were more like inflation plus 1%-2%.

Anyways, the figures above are just out of interest. ABSD has certainly had an impact on things.

abbby wrote: ↑

Wed, 25 Jun 2025 9:50 am

And now locals are the ones who cannot stop buying new launches causing property prices to rise so much. So I think time to remove / reduce ABSD and perhaps look into capital gain tax (ie: selling in 3rd,4th,5th yr) to reduce the speculative behaviour. It's not healthy for the next generation who are buying properties

ABSD is on the entire value, CGT is only on the gain, so it means far less tax revenue, and because it comes at the time of sale instead of purchase, it won’t be top of mind when buying.

Rules around financing, specifically on how large of a downpayment is required, is the easiest and most effective way to reduce speculation. The government could also impose an additional interest rate surcharge for 2nd property and up.

But none of that is going to make the property market more affordable for the next generation… for that, you MUST increase supply of housing, plain and simple.

So we are now officially in a communist country. (Unless you're a minister). Also I called it. This won't be the last time the useless busybodies meddle with SSD.

*The SSD was introduced in 2010 as a deterrent against flipping property for profit.*

https://www.straitstimes.com/singapore/ ... ers-raised

I don't think there is much impact increasing the holding period from 3 to 4 years.

If this revised SSD doesn't work then probably they will relook into ABSD.

Hello, everyone. This is a big debate because it balances the social goal of ensuring affordable housing with the economic need to maintain a liquid and fair real estate market for homeowners. Understanding that the intention of the ABSD is to curb speculation, the key is to find a balance.

Perhaps the ABSD could be reduced, but at the same time a capital gains tax could be established for short-term sales. This would punish speculators, but it would free up the market for legitimate investment and allow investors to diversify into other assets (stocks/bonds), as some suggest.