Housing developers of large en bloc projects to get more time to sell units under revised ABSD rules

Housing developers of large en bloc projects to get more time to sell units under revised ABSD rules The extension of the ABSD remission timeline for housing developers of large-scale en bloc projects will help facilitate rejuvenation and boost housing supply, says the Ministry of Finance and the Ministry of National Development. SINGAPORE: Housing developers taking on large en bloc projects will get more time to complete and sell units under revised Additional Buyer’s Stamp Duty (ABSD) rules announced on Tuesday (Jul 28), in a move aimed at supporting bigger redevelopments and boosting housing supply. The changes, which take effect for residential land acquired on or after Jul 29, 2026, give developers of larger projects longer timelines to meet conditions tied to ABSD remission, while introducing new safeguards to ensure homes are released to the market in a timely manner. This enhancement is intended to further support housing developers in undertaking large-scale redevelopment projects, and in doing so, facilitate rejuvenation and boost housing supply to meet demand, the Ministry of Finance (MOF) and Ministry of National Development (MND) said on Tuesday. Currently, licensed housing developers purchasing residential land are subject to 40 per cent ABSD. This comprises a 5 per cent non-remittable component and a 35 per cent upfront remittable component. The remittable component, with interest, is clawed back if developers fail to meet timelines for commencing development, completing the project or selling all housing units. These conditions ensure the timely injection of housing supply and encourage housing developers to bid for land prudently, said the ministries. LONGER TIMELINES FOR LARGER PROJECTS Under the revised rules, en bloc projects that yield at least 700 residential units but fewer than 1,400 units - classified as “Large Sites” - will have up to six years to complete construction and sell all units, up from the current 5.5 years. For larger “Mega Sites” with at least 1,400 units, developers will be given up to seven years, compared with 5.5 years previously. The timeline to commence development remains unchanged at 2.5 years for both categories. To qualify for the extended completion and sale timelines, redevelopment projects must produce at least 1.5 times the number of residential units compared with the existing development. NEW SALES REQUIREMENTS FOR MEGA PROJECTS To prevent delays in releasing housing supply, a new intermediate condition will apply to mega projects. Developers must sell at least 50 per cent of units within six years. If this threshold is not met, the full 35 per cent remittable ABSD component will be clawed back with interest at the six-year mark. Even if the requirement is met, developers must still complete the project and sell all units by the end of seven years or face similar penalties. The latest revisions build on a framework implemented in March 2025, which allowed six-month extensions for qualifying complex projects, such as those involving technical challenges, nascent construction technologies or those approved under the Strategic Development Incentive scheme. Projects that qualified under more than one category of this framework were eligible for an additional six-month extension. Similarly, under the enhancements announced on Tuesday, Large or Mega Sites that qualify for more than one category will be given an additional extension of six months. This means that such sites will be granted a commencement timeline of three years, as well as completion and sale timelines of 6.5 years for Large Sites and 7.5 years for Mega Sites. Rules for smaller en bloc developments - those yielding fewer than 700 units - remain unchanged. These projects will continue to be subject to a five-year completion and sale timeline, and a two-year deadline to begin development.