Stamp duties apply to Singapore property transactions. Property-value tier | BSD rate (residential)

Question

Stamp duties apply to Singapore property transactions.

Property-value tier	BSD rate (residential)
First $\$180\,000$	$1\%$
Next $\$180\,000$	$2\%$
Next $\$640\,000$	$3\%$
Next $\$500\,000$	$4\%$
Next $\$1\,500\,000$	$5\%$
Remaining amount	$6\%$

Buyer profile	ABSD $16\text{ Dec}\hspace{0.5em}2021\text{–}\hspace{0.5em}26\text{ Apr}\hspace{0.5em}2023$	ABSD from $27\text{ Apr}\hspace{0.5em}2023$
SC first property	Not applicable	Not applicable
SC second property	$17\%$	$20\%$
SC third/subsequent	$25\%$	$30\%$
SPR first property	$5\%$	$5\%$
SPR second property	$25\%$	$30\%$
SPR third/subsequent	$30\%$	$35\%$
Foreigner any residential property	$30\%$	$60\%$

Holding period	SSD rate
Up to one year	$12\%$
More than $1$ year, up to $2$ years	$8\%$
More than $2$ years, up to $3$ years	$4\%$
More than $3$ years	No SSD

Rachel is a Singapore citizen who owns one private residence. In March 2023 she bought a second residential property, P, for $2 000 000 excluding duties, paying in full. In April 2025 she receives an offer of $2 300 000.

Calculate the total stamp duties Rachel paid when purchasing P in 2023.[3]
Property prices rise by 7% each year. Determine whether Rachel should accept the April 2025 offer or wait until April 2026 to sell at market value. Exclude legal fees, commissions, financing, renovation, maintenance and interest-rate effects; assume the market and policies remain stable. Justify your decision.[6]

Accepted Answer

(a) $\$409\,600$ (b) Wait until April 2026; projected profit $\$40\,486$.

Property-value tier	BSD rate (residential)
First \(\$180\,000\)	\(1\%\)
Next \(\$180\,000\)	\(2\%\)
Next \(\$640\,000\)	\(3\%\)
Next \(\$500\,000\)	\(4\%\)
Next \(\$1\,500\,000\)	\(5\%\)
Remaining amount	\(6\%\)

Buyer profile	ABSD \(16\text{ Dec}\hspace{0.5em}2021\text{–}\hspace{0.5em}26\text{ Apr}\hspace{0.5em}2023\)	ABSD from \(27\text{ Apr}\hspace{0.5em}2023\)
SC first property	Not applicable	Not applicable
SC second property	\(17\%\)	\(20\%\)
SC third/subsequent	\(25\%\)	\(30\%\)
SPR first property	\(5\%\)	\(5\%\)
SPR second property	\(25\%\)	\(30\%\)
SPR third/subsequent	\(30\%\)	\(35\%\)
Foreigner any residential property	\(30\%\)	\(60\%\)

Holding period	SSD rate
Up to one year	\(12\%\)
More than \(1\) year, up to \(2\) years	\(8\%\)
More than \(2\) years, up to \(3\) years	\(4\%\)
More than \(3\) years	No SSD

2025 SJI PRELIMS P2 Q10

2025 SJI PRELIMS P2 Q10

Solution:

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