For property investors who have held an investment property for several years, the decision of when to sell is as consequential as the initial purchase decision.
Indicators That Selling Makes Sense
Selling is worth considering seriously when: the remaining lease is approaching the level where CPF usage restrictions begin to bite; when the property has appreciated significantly and your net yield on current value has fallen below 2%; when you're within five to ten years of retirement and want to reduce portfolio complexity; or when you have a specific use for the capital.
Indicators That Holding Makes Sense
Holding is worth continuing when: the remaining lease is long, the property is well-located near MRT with strong rental demand, and the net yield is healthy with reliable tenants; when selling would trigger ABSD on a future acquisition; or when the area has upcoming infrastructure development not yet fully priced in.
The Holding Period That Minimises Seller's Stamp Duty
Seller's Stamp Duty (SSD) applies if you sell within three years of purchase: 12% in year 1, 8% in year 2, 4% in year 3. Beyond three years from purchase, SSD no longer applies. This is the minimum rational holding period for any investment property in Singapore — selling before three years is almost always value-destructive after SSD.