Cooling Measures Ups Pressure on Property Developers – Meanwhile, ABSD for entities buying residential property has been raised to 35% from 25%. For developers, there’s an additional 5% that is non-remittable on top of the 35% ABSD.
The Real Estate Developers’ Association of Singapore (Redas) responded to the government’s latest property cooling measures as ‘tough’ and ‘unexpected’. In a press release on Dec 16, the association states that it feels the recalibrated measures come as the property market is “beginning to emerge from the challenging Covid-19 situation”.
It pointed out that the increase in the Additional Buyer’s Stamp Duty (ABSD) for land purchases from 25% previously to 35% under the revised measures impose “immense additional pressure on land acquisition as they compress their development, sales, project completion period and land replenishment cycle time in order to meet the stringent requirements for the remission”.
Redas suggests that the government differentiate the remission criteria for projects of different sizes, especially as the construction sector continues to struggle to meet project completion deadline.
It asks the government to consider allowing some developers a three-month extension to fulfil certain conditions precedent for recently purchased development land before the revised ABSD rate is applied to those purchases.
For a comprehensive review of the impact of the changes to your financial well-being, do get in touch, or with your advisors who will be able to guide you as well.
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You can read more about higher ABSD, HDB loan limits lowered at https://www.mnd.gov.sg/newsroom/press-releases/view/measures-to-cool-the-property-market
