Extended ABSD remission deadline for big, complex projects timely: Analysts

Developers' association calls for ABSD waiver for projects that have sold at least 95% of units

- Grace Leong

Developers who undertake large-scale complex projects, including larger collective sale redevelopments, will likely have more wiggle room after a critical sales deadline was extended by six months or a year.

While analysts say the policy change is timely, the Real Estate Developers' Association of Singapore (Redas) called for more fine-tuning to the Additional Buyer's Stamp Duty (ABSD) regime.

Minister for National Development Desmond Lee said in Parliament on March 5 that the ABSD remission timeline will be extended by six months or a year for developers undertaking complex projects that could "transform our urban environment at a large scale, optimise land, rejuvenate older estates or adopt new technologies".

Developers are subject to ABSD of 40 per cent on the price of land purchased for residential development, but can obtain a remission of 35 per cent if they sell all the units in the development within five years of their buying the land.

Extensions will be granted to projects approved under the Strategic Development Incentive scheme, as well as projects with complex technical or infrastructure requirements, including sites integrated with MRT stations and bus interchanges, and those that seek to achieve higher productivity targets via adoption of new construction technologies.

Extensions will also be granted for eligible smaller projects submitted through Corenet X, to encourage adoption of this platform that the authorities launched, which streamlines how companies seek regulatory approvals.