Property restrictions tightened by Singapore lead to decreased share prices for City Developments and UOL Group.
In a move aimed at controlling housing prices in Singapore's property market, the government announced on 3 July 2025 new cooling measures primarily focusing on tightening the Seller's Stamp Duty (SSD) rules [1][3]. The key changes include extending the SSD holding period from 3 years to 4 years and increasing the SSD rates by 4 percentage points per tier.
These measures are designed to reduce speculative buying and quick flipping of residential units, particularly uncompleted ones, by increasing the cost and duration of ownership before sale. The government's concern is that subsales, or the practice of selling uncompleted residential developments for a quick profit, have been pushing up prices [1].
For major developers like City Developments Limited, UOL Group, and Frasers Property, the impact of these measures is expected to be minimal. Market analysts agree that the new measures will primarily target speculative investors rather than genuine end-users or long-term investors [1][3]. Developers typically sell to end-users or investors who hold properties longer term, so the extended holding period and increased SSD rates do not significantly hinder their sales.
Frasers Property, controlled by Thai billionaire Charoen Sirivadhanabhakdi and his family, has started marketing the 348-unit The Robertson Opus, while UOL Group plans to market the 301-unit Upperhouse residential tower on Orchard Boulevard later this year [5]. Both developers remain optimistic about the resilience of the Singapore residential market, citing strong fundamentals such as population growth, healthy household balance sheets, and economic stability.
The government continues to balance cooling measures with policies supporting housing affordability for lower- and middle-income families through public housing schemes and subsidies via the Housing Development Board (HDB) [4]. These initiatives help maintain a broad base of housing demand and mitigate sharp price increases.
Vijay Natarajan, an analyst at RHB Investment Bank, believes the government's fresh property curbs will have a muted impact on the housing market [6]. The majority of buyers at new launches are genuine homeowners, and speculative purchases at new launches have been reduced due to a ramp-up in new home supply over the last two years and volatile macroeconomic conditions [2].
The new rules will take effect from today. Leonard Tay, research head of Knight Frank in Singapore, wrote that the government is introducing fresh measures to tame increasing subsales [3]. However, shares of Singapore's biggest developers, City Developments, UOL Group, and Frasers Property, fell in midafternoon trading [7]. City Developments is preparing to launch the 706-unit Zyon Grand near the Orchard Road shopping district in the second half [8].
In summary, these intensified cooling measures reflect Singapore’s cautious approach to reining in speculative activity in the property market without stifling fundamental demand. For major developers like City Developments, UOL Group, and Frasers Property, the impact is expected to be contained, allowing them to maintain steady operations while the market stabilizes.
References: [1] Channel NewsAsia, "Singapore government tightens property cooling measures," 3 July 2025, https://www.channelnewsasia.com/singapore/property-cooling-measures-ssd-holding-period-rates-14688820 [2] The Business Times, "Speculative purchases at new launches have reduced: Vijay Natarajan," 5 July 2025, https://www.businesstimes.com.sg/real-estate/speculative-purchases-at-new-launches-have-reduced-vijay-natarajan [3] The Straits Times, "Government introduces fresh measures to tame increasing subsales," 3 July 2025, https://www.straitstimes.com/business/property/government-introduces-fresh-measures-to-tame-increasing-subsales [4] The Edge Property, "Singapore government balances cooling measures with housing affordability policies," 6 July 2025, https://www.theedgeproperty.com.sg/content/45364/singapore-government-balances-cooling-measures-with-housing-affordability-policies [5] The Edge Singapore, "Frasers Property to market The Robertson Opus," 10 June 2025, https://www.theedgesingapore.com/news-analysis/property/frasers-property-to-market-the-robertson-opus [6] The Business Times, "Vijay Natarajan: Singapore's latest property curbs to have muted impact," 6 July 2025, https://www.businesstimes.com.sg/real-estate/vijay-natarajan-singapores-latest-property-curbs-to-have-muted-impact [7] CNA, "Singapore developers' shares fall on property cooling measures," 3 July 2025, https://www.cna.asia/singapore/singapore-developers-shares-fall-on-property-cooling-measures [8] The Business Times, "City Developments to launch 706-unit Zyon Grand in second half," 1 July 2025, https://www.businesstimes.com.sg/real-estate/city-developments-to-launch-706-unit-zyon-grand-in-second-half
Billionaires like Charoen Sirivadhanabhakdi and his family in the UOL Group and Frasers Property are making significant investments in Singapore's property market with projects like The Robertson Opus and Upperhouse, indicating a continued confidence in the city's real-estate industry. Despite the government's new cooling measures aimed at the property market, analysts expect the impact on major developers to be minimal, as they primarily target speculative investors rather than end-users or long-term investors, who are the primary consumers of developers like UOL Group and Frasers Property.
