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19-02-24, 10:08
Budget 2024: Tweak in ABSD on land to give developers more leeway on sales
Feb 16, 2024
HOUSING developers will be granted some flexibility under the Additional Buyers’ Stamp Duty (ABSD) regime, said Finance Minister Lawrence Wong on Friday (Feb 16).
The revisions will reduce the amount of ABSD payable by developers on their land purchases, if they fail to sell out their projects within a five-year timeline.
For residential developments that have sold at least 90 per cent of units within five years of the land acquisition, the ABSD clawback rate will be lowered.
Currently, housing developers face an ABSD rate of 40 per cent on land purchased for residential development. Of the 40 per cent ABSD, 5 per cent is payable upfront.
If the developer fails to sell all the residential units in its project within five years of the date of acquisition of the land, the 35 per cent remittable component will be clawed back with interest, regardless of the number of unsold units. Sites acquired between Jul 6, 2018, and Dec 15, 2021, have a 25 per cent remittable component.
“But despite their best efforts, the developers sometimes face difficulties in meeting this timeline requirement,” said Wong.
The change will ensure that the housing supply will continue to be released promptly, while providing some flexibility to the developers, he said in his Budget speech.
https://i.imgur.com/PBXHoui.png
https://www.businesstimes.com.sg/property/budget-2024-tweak-absd-land-give-developers-more-leeway-sales
Feb 16, 2024
HOUSING developers will be granted some flexibility under the Additional Buyers’ Stamp Duty (ABSD) regime, said Finance Minister Lawrence Wong on Friday (Feb 16).
The revisions will reduce the amount of ABSD payable by developers on their land purchases, if they fail to sell out their projects within a five-year timeline.
For residential developments that have sold at least 90 per cent of units within five years of the land acquisition, the ABSD clawback rate will be lowered.
Currently, housing developers face an ABSD rate of 40 per cent on land purchased for residential development. Of the 40 per cent ABSD, 5 per cent is payable upfront.
If the developer fails to sell all the residential units in its project within five years of the date of acquisition of the land, the 35 per cent remittable component will be clawed back with interest, regardless of the number of unsold units. Sites acquired between Jul 6, 2018, and Dec 15, 2021, have a 25 per cent remittable component.
“But despite their best efforts, the developers sometimes face difficulties in meeting this timeline requirement,” said Wong.
The change will ensure that the housing supply will continue to be released promptly, while providing some flexibility to the developers, he said in his Budget speech.
https://i.imgur.com/PBXHoui.png
https://www.businesstimes.com.sg/property/budget-2024-tweak-absd-land-give-developers-more-leeway-sales