Housing Developers of Large En Bloc Projects to Get More Time to Sell Units Under Revised ABSD Rules

Singapore is adjusting its Additional Buyer’s Stamp Duty (ABSD) rules to provide housing developers with more time to sell units from large en bloc projects. This revision aims to encourage bigger redevelopments and bolster the nation's housing supply. The updated regulations, effective for residential land acquired on or after July 29, 2026, offer extended deadlines for developers to meet ABSD remission conditions, while incorporating new measures to ensure homes reach the market promptly.

The Ministry of Finance and Ministry of National Development stated that these enhancements are designed to further support developers in undertaking large-scale redevelopment projects. This initiative is expected to facilitate site rejuvenation and increase housing availability to meet ongoing demand. Currently, developers pay a 40 percent ABSD on residential land purchases, comprising a 5 percent non-remittable portion and a 35 percent remittable component. The remittable part, along with interest, is forfeited if developers miss timelines for commencing development, project completion, or selling all units.

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This enhancement is intended to further support housing developers in undertaking large-scale redevelopment projects, thereby facilitating the rejuvenation of these sites and availing additional housing supply to meet resilient housing demand

Under the revised rules, projects yielding between 700 and 1,400 units, classified as "Large Sites," will have six years for construction and sales, an increase from the previous 5.5 years. For "Mega Sites" with at least 1,400 units, the timeline extends to seven years. The deadline to commence development remains 2.5 years for both categories. To qualify, projects must increase the number of residential units by at least 1.5 times the existing development, promoting more intensive land use. New sales requirements for mega projects include selling at least 50 percent of units within six years to prevent market delays; failure to meet this threshold results in the forfeiture of the full 35 percent remittable ABSD with interest. Rules for smaller en bloc developments (under 700 units) remain unchanged.

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These conditions ensure the timely injection of housing supply and encourage housing developers to bid for land prudently