The Singapore government has extended the Additional Buyer’s Stamp Duty (ABSD) remission timeline for large-scale en bloc redevelopments, aiming to rejuvenate older estates and boost housing supply. Developers now have up to seven years to complete and sell all units for projects yielding 1,400 or more homes, and six years for those with 700 to 1,399 units.
This policy change is expected to make large en bloc projects more attractive by reducing the financial pressure of meeting tight deadlines. However, industry experts caution that the success of these projects still hinges on realistic pricing. High asking prices have previously deterred developers, and without adjustments, the extended timelines may not lead to increased sales.
The government's move also lifts the 15-month wait-out period for private property owners purchasing non-subsidised HDB resale flats without an HDB housing loan, acknowledging the cooling in the resale market.
While the extended ABSD remission timelines provide developers with more flexibility, the market's response will depend on the alignment of project pricing with current market conditions. Stakeholders will be closely monitoring how these policy adjustments influence the viability and attractiveness of large en bloc redevelopment projects.