Singapore’s Sub-Sale Property Market: Slower Activity, But Profits Remain

Singapore’s sub-sale market—where buyers sell new units before completion—has slowed amid tighter regulations and economic uncertainty. Yet, despite the decline in transaction volume, most sellers are still seeing strong returns.

Sub-sale market cools, but patient investors still see profits.

Decline in Sub-Sale Activity

Sub-sale transactions fell to 292 units in Q1 2025, down 26% from the previous quarter. Sub-sales now make up just 4.3% of non-landed private home transactions, compared to 9.8% in Q4 2023. This marks a clear drop from pre-cooling measure highs, although levels remain above pandemic-era lows.

Policy Measures Curb Speculation

Cooling measures introduced in 2023—particularly higher stamp duties and elevated interest rates—have made short-term flipping less attractive. The Seller’s Stamp Duty (SSD), which imposes up to 12% tax on early resale, discourages quick exits, leading more buyers to hold for longer.

Profits Still Strong

Despite the drop in activity, profitability remains high. From Q1 2024 to Q1 2025, the median gross profit for sub-sales was S$257,000, with a gross return of 20.2% and an annualised return of 4.6%. Fewer than 1% of sub-sale deals recorded losses or broke even.

High-Performing Projects and Launches

Projects like Gem Residences and Riverfront Residences saw high sub-sale activity, each with over 25% of units resold. Recent launches such as Chuan Park and The Orie were well-received, selling most units quickly, though current price levels suggest limited room for further short-term appreciation.

Outlook

With economic sentiment fragile and speculative activity curbed, sub-sale volumes may continue to ease. However, a tight pipeline of unsold units could support near-term demand.

Conclusion

The sub-sale market is cooling, but remains profitable for those who can hold beyond SSD timelines. While quick flips are fading, disciplined investors may still find solid long-term gains.