Tier Additional Buyer's Stamp Duty and Selling Deadlines for Development Projects of Different sizes
Ministry of FinanceSpeakers
Summary
This question concerns Mr Don Wee’s inquiry on whether the government would adjust and tier Additional Buyer's Stamp Duty (ABSD) and selling deadlines based on project size to reflect better equity. Minister for Finance Lawrence Wong replied that current remission conditions already differentiate between licensed and non-licensed developers, who must sell all units within five and three years respectively. These conditions ensure timely completion and sale of residential units while encouraging prudent land bidding by developers. Minister for Finance Lawrence Wong noted that about 85% of licensed and 90% of non-licensed developers met these deadlines in 2019 and 2020. Consequently, the Government considers the current ABSD sale timelines to remain relevant despite regular reviews of the framework.
Transcript
20 Mr Don Wee asked the Minister for Finance whether the Ministry will consider adjusting and tiering the Additional Buyer's Stamp Duty (ABSD) and selling deadlines for development projects of different sizes to reflect better equity.
Mr Lawrence Wong: Today, housing developers purchasing residential sites can qualify for upfront ABSD remission of 25%, if they meet specified conditions for the commencement and completion of development, and sale of all units within the residential development.
These conditions for the ABSD remission for housing developers ensure the timely commencement and completion of development, and sale of residential units, and encourage developers to bid for land prudently.
The existing conditions for the ABSD remission already differentiate between licensed housing developers (developing five or more residential units) and non-licensed housing developers (developing four or less residential units). As part of these conditions to qualify for the ABSD remission, licensed housing developers and non-licensed housing developers need to sell all units within five years and three years from the site acquisition date respectively.
The Government regularly reviews the ABSD framework. The ABSD sale timeline of five years for licensed housing developers and three years for non-licensed housing developers remain relevant. For licensed housing developers, about 85% or more of developments met the five-year ABSD sale deadline in 2019 and 2020. For non-licensed housing developers, about 90% of developments met the three-year ABSD sale deadline in 2019 and 2020.