Cooling measure changes and how you can benefit from it

Seller Stamp Duty SSD Changes

Changes to SDD, TDSR and Stamp Duty for Companies (PHEs)

On 11 March 2017, The MOF and MND released a joint statement regarding changes to the cooling measures currently in place when you purchase property in Singapore.

These are :

1) Reduced Sellers Stamp Duty (SSD)

Properties purchased after 11 March will be subjected to a reduced holding period that is subjected to the Sellers Stamp Duty. (i.e. 3 years instead of the 4 years currently in place) as well as a reduction of % points . See table below. 

2) Changes to the TDSR limit for those planning to take out an equity term loan using their current property.

The current TDSR framework has limited an owner's ability monetise their properties in their retirement years, i.e. to borrow against the value of their properties to obtain additional cash. Therefore MND will no longer apply the TDSR framework to mortgage equity withdrawal loans with LTV ratios of 50% and below.

3) A new Stamp Duty Treatment for 'Property Holding Entities' (PHEs)

Companies owning properties are now subjected to a higher stamp duty rate, in line with the stamp duty rate for individuals. 

Since changes 2 & 3 only applies to a select group, we shall talk about it in a separate blog post .

Seller stamp duty changes

The sellers stamp duty has been in place since Feb 20, 2010 to prevent investors from making a quick profit in a rising market.

When times were good previously,  there were instances a single property could change hands multiple times within a few days, earning the flippers a good deal of money and creating a runaway housing market that the government was later forced to control.

​To curb this, the Government introduced the Sellers Stamp Duty which forced the seller to pay a percentage of the property's selling price to the government, thus reducing the sellers profits. Although it was not one of the most effective tools of the entire cooling measures in the government's arsenal, it contributes to an investor's hesitation to purchase a property, since they will not be able to sell it off if quickly if he loses his holding power.

​The Government announced that for properties bought on or after 11th March 2017, there will be a reduction in the holding period as well as the amount of stamp duty/percentage points of the SSD as shown in the table below :

Holding Period

1 year or less 

Between 1-2 years

Between 2-3 years

Between 3-4 years

Between 4-5 years

From Feb 2010 to 
10 March 2017






From 11 March 2017






How the changes can benefit you.

As of now, we believe that the changes in the SSD may have an impact on new launch properties or those that are still under construction. Smaller units that are meant for investment may experience the biggest impact.

[Analysts from the straits times seem to think so too. Click here for the article.]

The Seller stamp duty or the SSD starts from the day you exercise the Option To Purchase or sign the Sales & Purchase Agreement. This is regardless of if you purchase a new launch, a property under construction, one that has just TOP or a resale unit. 

[In contrast, the 5 year holding period of a HDB flat or the MOP, starts from the day you receive the keys, not while its under construction]

Therefore, the changes in the SDD can benefit you if you purchase a new launch, due to the following factors :

1) Reduced risk of not being able to rent the unit out in a slow market.

This means that the SSD period for buyers of new launches would be mostly during the construction period, taking away some risk from the owner, i.e. the risk of not being able to rent it out in a slow market.  Your profits would be through the capital appreciation that a development happens from launch to TOP, since not all buyers out there are willing to wait 3 years for a place to stay. 

To maximise your profits,  you should choose a property that is in an area that is either going through gentrification or one that MND has earmarked as a 'growth area'. Examples include Park Place Residences in Paya Lebar or Parc Riveria in the Jurong Lake District.  [ Other growth areas include Woodlands Regional Center and the Punggol Creative Cluster. ]

At the same time, we would advise against just purchasing a random property that under construction. Although this change cuts your risk, you should still stick to the fundamentals of purchasing a property at a good entry price and one that can easily be rented out. Not sure which properties to look at? Sms/ Whatsapp 96918885 so that we can give you proper advice. 

2) Lesser "Capital Outlay" via the progressive payment scheme if you purchase a property at a new launch.

Investors can also opt for the Progressive Payment Scheme when you purchase a new launch.

The progressive payment schedule for new condo launches are as follows: 

Progressive Payment Scheme for new condo launches

The monthly amount you pay depends on the stage of construction of the unit you purchased and monthly outlay can be as little as a few hundreds each month for the first few phases of construction. We've done up an example based on a $700 000 new launch unit. This can be via cash or CPF depending on your situation. 

Progressive payment schedule for new launches

3) Prices at launch are the usually the cheapest.

If you are wondering why there are still crowds at new launches, this is probably why. Buyers are willing to brave the crowd and wait in line to ballot for units during launch date because they are able to get their pick of the best units at a good price. Prices for good units tend to increase once supply decreases and the closer the development is to TOP.  

These are probably part of the reasons why, despite the cooling measures in place, new launches have experienced brisk sales at launch date. 

Thinking of benefiting from the changes? We suggest you take a look at new launch properties in growth areas, especially Park Residences at Paya Lebar. SMS us at 9691 8885 to book an appointment slot and a VIP pass to view the showflat before the official launch date.

Preview Period : 11th - 20th March 2017. Targeted Launch Date 25th March 2017.

Park Place Residences

Click here to find out more about the development or SMS/whatsapp us at 96918885.

Are developers becoming increasingly creative? OUE and the deferred payment scheme

Developer Discounts Property

1. Will creativity help the Singapore Property Market? 

Tough times call for creative measures and this exactly what this developer did.

UOE announced last week that they were offering 2 schemes to sell off the remaining units of the UOE Twin Peaks located on Leonie Hill Road in District 10. Rather than slash property prices to bring in buyers, the developers have decided to offer 2 creative payment methods to buyers in hopes of selling more units before they have to pay the ABSD and the extension QC charges for unsold units in 2018.

Straits times article : UOE Twin Peaks 

2. What is the OUE Twin Peaks selling scheme about?

a. Scheme 1

In the first scheme, the Buyer puts down a 20% downpayment for the unit he wants to purchase but he will only sign the Sales and Purchase (S&P) agreement ( $1000 ) at the end of the year (instead of completing the sale in about 2 weeks to 1 month i.e. the normal procedure. )

This scheme allows the buyer to lock in the purchase price, eventhough the sale will only be completed at the end of the year, where developers and experts predict the ABSD might be reduced or even removed. (Note: The various Stamp Duties is usually due upon the sale completion i.e. signing of the S&P)



  • You get to lock in the price and not be affected by price increases if the ABSD is removed/ reduced at the end of the year
  • (Analysts predict that removal of the ABSD will result in an increase in price, because of suppressed demand )
  • Instead of 5% cash deposit, you will need to pay a 20% cash deposit. 
  • If ABSD is not removed, its pretty much the status quo. You will still need to pay the ABSD if this is your second or third property and alternatively market forces might have allowed you to purchase a sub-sale unit at a cheaper price.

b. Scheme 2

Buyers will have to make a 20% downpayment first and sign the sales and purchase agreement (another $1000 ) as per normal but the loan payments/ balance payment can be deferred for another 3 years.

This is known as the deferred payment scheme.

However, since the S&P has been signed, buyers would have to make the payment for the various stamp duties as per IRAS’s timelines.



  • With no monthly mortgage payment, buyers who are purchasing a unit to rent out will not be pressured by the weak rental market.
  • These buyers can technically underbid all other landlords who are renting out their units in the same or neigbouring developments. The rent collected for the next 2-3 years adds directly to your profits.
  • If the overall property and rental market improves in 3 years time, owners would have bypassed the worst of times.
  • Instead of 5% cash deposit, you will need to pay a 20% cash deposit. 
  • The property price is increased by about 3-9 %
  • You will still need to make the ABSD payments.

What is the Deferred Payment Scheme (DPS) ?

The deferred payment scheme is basically a scheme which allowed buyers to put off a bulk of their mortgage payments until the building was ready for construction. This was popular in 2002 to 2006 but was removed in 2007 when the market started heating up. 

Currently the deferred payment is only available for Executive Condominiums.

Why is UOE able to do this? Will other developers follow suit?

UOE is able to do this because the property has received the CSC (Certificate of Statutory Completion) and is no longer subjected to the Housing Developers Rules. Other developers might follow suit or they might have other methods of overcoming the ABSD.

In this Business Times article, " Developers sanguine about selling out before stamp duty deadline, rather than giving hefty discounts to individual buyers and thus be accountable to their lenders and their shareholders, other options might include:

  • Buying the properties themselves (using a subsidiary) and rent the units out. 
  • Selling to a bulk buyer
  • Accepting a silent offer from a buyer without offering hefty discounts from the public. 

Our Thoughts? 

With plenty of supply and many buyers waiting on the sideline, developers would definitely come up with creative ways of selling off their units.  

However, its still quite clear that these developers have choices and it is not as simple as slashing their prices to get more sales. Their bottomlines and profit margins still matter especially where there are shareholders involved. These developers won't risk scaring off their shareholders or even reducing the shareholder's confidence because this affects the company's long term progress ( while selling off the units affects only their short term balance sheet). 

This is not to say that there aren't any developers who offer price discounts.

While 'waiting for prices' to drop may seem a reasonable strategy , we believe that taking a pro-active method and offering a lower but still reasonable price for a better unit can make all the difference for you, especially if the development is in a good location. 

Update: As of 5th May, The Straits Times reported that UOE Twin Peaks sold about 30 units over the past few weeks. Its not indicated if all the buyers opted for the DPS. 

Eyeing a condo at a particular development ? Let us find out for you the lowest price developers have accepted for similar unit types.  Email us at today. 

Dual Key Condominium Units

Dual Key Condominiums in Singapore

What are dual key condominium units?

Dual Key condo units are apartments with 2 separate living spaces, typically a 2 or 3 bedder apartment and with an attached studio unit or one bedroom apartment.

They are found in private condominiums and executive condominiums (ECs).

[Note: As of end 2013, HDB revised its policies and would only allow multi-generational families to purchase Dual Key ECs.]

Dual Key Condominium Singapore

Sample 3 bedroom Dual Key Unit at the Santorini in Tampines

As you can see from the floor plan above, there is one main door but living space is quite clearly defined.

Some dual key units (like the one in the floorplan above) come with 2 kitchens spaces (i.e. the studio unit has an induction cooker) while others come with an oven / microwave oven for simple cooking and reheating.

Why are these types of units popular?

1) Passive income while enjoying condo living.

While many people enjoy the perks and facilities of a private development, be it a condominium or an apartment, they usually shudder at the thought of the hefty mortgage payments.

A dual key condominium unit ensures that you have some rental income coming in while you enjoy the luxuries associated with condo living.

2) More privacy than renting out a room

Some families, especially those with young children, do not like the option of renting out a room because of the loss of privacy associated with the sharing of a bathroom, kitchen etc.

With a dual key unit, the tenant has access to his own bathroom and kitchen, which means more privacy for the family.

3) Restrictions of the Cooling Measures

Currently, if you purchase a second property, there are several restrictions for example a lower loan amount (LTV), and an additional stamp duty (ABSD) imposed on the owner.

With a dual key unit, you technically own ‘two’ properties since you can rent one out.

However, we can also suggest other legal means of avoiding the ABSD if it is an issue for you.

Typical Use of dual key units

  1. Owners of dual key units usually stay in the main living space and rent out the one bedroom /studio
  2. There are also savvy singles or young couples who prefer to stay in the one bedder and rent out the 2 or 3 bedder for a higher monthly rent.
  3. Multigenerational families also remain close by using the space for their teenage or adult children, or even elderly parents.
  4.  Entrepreneurs who operate a home office might also prefer to use the unit as a study or as an office space. Please take note that you would still need to abide by URA's guidelines for operating a home office. 

Is it a wise investment to purchase a dual key apartment?

As with other investment properties, you need to remember that there are basic concepts to purchasing a good rental property.

    1) Proximity to amenities and transportation

If the attached apartment does not have any cooking facilities, proximity to eateries would definitely be an important factor.

Distance to public transportation is definitely an important factor since , if everything else is equal, tenants would definitely prefer accommodation closer to public transport.

2) Living space

Some dual key studio or 1 bedroom units come in loft style, which means that the bed is on a platform. You might want to survey the other developments in the area to see if this is a typical set up because tenants might not be too receptive to this set up, unless there are a lot more advantages to living in that development, for example, bigger living spaces, a condominium in the city center etc.

3) Lower Quantum because of total PSF

When buying a private property, the bigger the size of the unit, the lower the PSF (i.e. price per square foot).​

If you were to compare the cost of purchasing a 4-room dual key apartment to 2 separate apartments (i.e. a 3 bedder and a one bedroom apartment for rental), the cost of the dual key is definitely cheaper than that of the 2 separate units.

A list of condominium developments with dual key units?

Note: This is not a comprehensive list of developments. If you have any other development in mind and need more information, we will be glad to assist. 

Private Condominiums

  • Citygate - Beach Road
  • Sunnyvale Residences- Lorong K Telok Kurau
  • The Santorini - Tampines
  • Bartley Ridge - Bartley Rd
  • The Interlace - Depot Road
  • Waterfront at Faber
  • The Glades - Tanah Merah

Executive Condominiums (ECs)

  • Ecopolitan @ Punggol