ABSD Deadline for Developers: How can you benefit from these new condo with ABSD deadline?
When developers buy land through en bloc sales or government land sales, they are subject to a 40% Additional Buyers Stamp Duties* (ABSD) of which 35% may be remitted and 5% non-remissible. How will the ABSD Deadline for Developers benefit you?
*Updated Rates after December 2021 cooling measures
Table of Content
- ABSD for Developers
- How can You Benefit?
- New launch Condo List with ABSD Deadlines
📌1. ABSD for Developers
- The 35% ABSD (or 25% before Dec 2021) can only be remitted if the developers sell off all the units in the project within five years.
- This is regardless whether it is a small boutique apartment with 30 units or mega big condo with more than 1,000 units.
- Developers with looming ABSD deadlines will be motivated to sell their last remaining units rather than to pay the ABSD for developers
- This may result in developer offering discounts for some lucky buyers.
📌2. How can You Benefit
- When the new condo has achieved a take up rate of 90% or are left with a small number of unsold units, it will not be worthwhile to pay the ABSD.
- For projects that have received its Temporary Occupation Permit (TOP) and near the ABSD deadline, you may start seeing limited time developer’s discounts for the last remaining units.
- These discounts may get steeper as we inch closer towards the ABSD deadline.
- A recent example in 2021, 38 Jervois launched a fire sale to clear off all its unsold units by giving out 13-24% discount.
- Besides fire sale, developers can offer deferred payment in the form of “Stay & Pay Later” schemes.
- In 2016, two mega projects, D’Leedon and The Interlace offered 15% discount and a stay-then-pay programme for the majority of their unsold units when they were near the ABSD deadline.
- Through this scheme, the buyers enjoyed a discount and were also allowed to move in immediately after exercising the Option to Purchase (OTP).
📌3. New Condo List with ABSD Deadlines
- Below is a list of new launch condo (with unsold units) and their corresponding developer ABSD deadlines in 2022/2023
- To know which condos may be more suitable for you based on your needs and budget, contact us for a no-obligation consultation @ 9828 5808
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