Singapore Govt extended deadline for 44 housing projects due to meet their ABSD obligations between 2021 and 2023

SINGAPORE: 44 projects, which represent 12% of those facing a sales deadline from 2021 to 2023, were granted additional time to meet their sales targets.

These extensions — not part of the COVID-19 Temporary Relief Measures — were approved due to extraordinary circumstances, including unforeseen and uncontrollable site-specific delays encountered by the developers, said Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong.

This was said in response to questions raised regarding the extension of the Additional Buyer’s Stamp Duty (ABSD) deadline for the Cuscaden Reserve development.

Cuscaden Reserve, a luxury leasehold condominium located in District 10, was one of several private housing developments approaching an important deadline in 2023 for the ABSD, where failing to sell all its units by this date would trigger significant stamp duty fines.

Mr Sitoh Yih Pin, People’s Action Party Member of Parliament for Potong Pasir SMC and Mr Chua Kheng Wee Louis, Workers’ Party MP for Seng Kang GRC, queried the DPM Wong, on two fronts: the specifics of the ABSD deadline extension for Cuscaden Reserve, including the rationale and conditions tied to it, and the broader number of residential projects that have received similar extensions since the ABSD remission rules for developers came into effect, excluding the period of the COVID-19 pandemic.

In response, Mr Wong elaborated on the general framework guiding ABSD remission for developers, stating, “Today, housing developers purchasing residential sites can qualify for an upfront remission of Additional Buyer’s Stamp Duty (ABSD), if they meet the specified timelines for commencement and completion of the housing development, and the sale of units within the residential development.”

He further clarified that “Requests for extensions to the specified timelines are considered by the Government on a case-by-case basis. I would not comment on individual cases, as the details include confidential taxpayer-specific information.”

Highlighting the compliance rate among developers, Mr Wong added, “The vast majority of housing developers have met the sale timeline for ABSD remission, after taking into account the extension provided under the COVID-19 Temporary Relief Measures. A small group of developers have applied for an extension.”

The developer of Cuscaden Reserve was SC Global Developments, together with Hong Kong-listed New World Development and Far East Consortium.

Marketing agents have reportedly been offering Cuscaden Reserve’s units at discounted rates starting from S$2,900 per square foot—around 20 per cent below the initial average price of S$3,600 psf.

When developers acquire land for residential projects, they are liable for a 40 percent ABSD. From this, 5 percent must be paid immediately, and the remaining 35 percent can be waived if all residential units are sold within a five-year period.

However, if the developer does not manage to sell all units within this timeframe, the 35 percent is retrieved, along with interest, no matter how many units remain unsold. Reportedly, not meeting the sales quota within the stipulated timeframe could result in an ABSD fine estimated at 15 per cent of the land purchase price, or approximately S$61.5 million.