What's Up With The Sellers' Stamp Duty??

So, in Singapore, we have this thing called the Sellers' Stamp Duty (SSD). It's a government initiative , started in 2010, to cool down the red-hot property market, together with stuff like ABSD (additional buyer stamp duty), TDSR (total debt servicing ratio).

These measures certainly had the intended effect.
Take a look at this chart:

• 2010 - Sellers Stamp Duty (SSD)
• 2011 - Additional Buyer Stamp Duty (ABSD)
• 2013 - Total Debt Servicing Ratio (TDSR)

So we can see the index slowing its rise in 2010 until it reached its peak in late 2013, after the introduction of TDSR. Since then, the index has been dropping steadily.

2013 was also the year where I bought my first property, in Shunfu Ville. Shunfu Ville is famously known for being the biggest enbloc sale in recent years. It has yet to achieve legal completion as the legal case is ongoing at the Court of Appeal.

However, the SSD is already paid as somehow, it's dated to the time that the developer exercise their option to purchase after winning the tender (which was around May 2016). This does not make sense to me:

1. Winning the tender does not equal to a sale. There are still various steps to reach legal completion.
2. The time from winning the tender until legal completion can be many months. In the case of Shunfu Ville, it's been almost an entire year. This means we are taxed way before we receive any money from the developer (have to wait for legal completion), and before we can safely buy another replacement property (we can buy, but if the Court of Appeal rules in favour of the objectors, we'll be screwed).

Furthermore, I'm not a proponent of the enbloc sale. I did not sign the CSA. Yet I'm liable for this tax.
Taxing such a large amount of money, so early on, also means lost income in the form of interests or capital gain from investments. And I don't think this SSD qualifies me for any income tax rebate.

My SSD liability was 4% of the sale price, as my period of ownership was between 3-4 years. It's a lot of money to me, considering that I need to buy a similarly-sized property within the area.

I guess people will just tell me to move somewhere else where it's cheaper.
Well, it's more complicated than that. Proximity to the kids' schools is a consideration. Everything has been arranged around this location.
And all of these has been FORCED on us! We didn't choose to sell our estate. Yet we are being forced to move, to pay the SSD on top of that.

To make things WORSE (yes, it can get worse), the government just announced tweaks to the SSD.

Screenshot from IRAS website

Basically, they have announced reductions to the SSD period (from 4 years to 3), with immediate effect. Right after the announcement, share prices of developers shot up. http://m.todayonline.com/business/property-counters-jump-after-easing-cooling-measures

As if I don't have enough to deal with, now I might have to expect property prices to go up, however slightly. As mentioned before, I cannot purchase a property right now before legal completion of the enbloc sale. By my estimation, I might find something around June earliest (its a property, mind you).

I will certainly be praying that prices don't go up, yet. Suffice to say, I'm not hopeful at all that IRAS will give me back my SSD. In any case, I have to give a shot, meet my MPs, etc. 

From this experience, I just want to say that the SSD scheme serves a purpose, but it is flawed, as shown in my case. Firstly, I'm not a speculator, nor property investor. I bought my unit because I liked its location and size. 

In a typical scenario, if I sold my unit, I buy a replacement one, pay my taxes, done deal.

But in this enbloc scenario, I'm being taxed a YEAR before any money exchanges hands. Why?? And I'm also losing interest income. I get no compensation for that.

Thirdly, I'm not a supporter of the enbloc. The whole exercise started about 2 years after I moved in. I cannot claim to have knowledge that it will happen, because I simply didn't.

I have heard of buyers coming in after the enbloc started. Let them pay the SSD! They are at least aware that it is happening!

Hopefully, this post helps a potential property buyer. If you are buying a private property, make sure they are not going for enbloc exercise in the next 3 years.

For me, I've already crossed out several potential land mines...

27/3/2017 Update:

I wrote an email to IRAS on 13th March, highlighting my arguments as above. It's been two weeks and so far no reply from them (other than the automated reply). I wonder if that is a good sign? That they are looking into my case seriously? Or it's been thrown out the window and they can't be bothered with me? Hmmm...