Developers to welcome extension on ABSD regime

This will give developers more wiggle room.

Developers will welcome the recent revision to the Additional Buyer’s Stamp Duty (ABSD) regime, which will extend remission timelines for completed projects as well as extend the qualifying period for the ABSD remission timeline extensions for smaller projects submitted through CORENET X, according to several analysts.

“Such extensions will give developers more flexibility and may help to mitigate development risks to some extent, as they have a bit more time to sell units, particularly for mega projects. In a way, this is probably a fairer treatment in our view. Imagine a project with 800 units having the same 5-year ABSD remission timeline as a boutique development with 80 units to build and sell all units,” Ismail Gafoor, CEO of PropNex, said.

Huttons Asia said the move recognises the fact that bigger projects or complex projects will need more time to plan and sell and would boost the en bloc market, in particular bigger en bloc projects.

Meanwhile, Christine Sun, Chief Researcher & Strategist at OrangeTee Group, said that this is a fairer system as larger and more complex projects should not be held to the same deadlines as smaller ones.

“This approach will ensure that the quality of the projects is not compromised, ultimately enhancing construction standards when given additional time,” Sun said.

However, there is no expected revival on the en bloc market as developers continue to be cautious given the high cost of redevelopment, ample oncoming private housing supply, and potential policy risk, Gafoor said.