Extended ABSD Remission Deadline for Large En Bloc Projects

More Time for Developers to Complete Complex Redevelopment Projects

Singapore’s en bloc and urban transformation landscape is set for a shift with the government’s decision to extend the Additional Buyer’s Stamp Duty (ABSD) remission deadline for large-scale redevelopment projects.

Announced by Minister for National Development Desmond Lee in Parliament on March 5, 2025, this change provides developers with much-needed flexibility to complete and sell units in complex, large-scale urban projects.

Previously, developers were required to commence construction within two years and sell all units within five years to qualify for ABSD remission.

Failure to meet this deadline resulted in the clawback of the remittable ABSD component with interest.

However, with this latest policy shift, developers now have six months to one year of additional time to complete their projects, depending on the scale and complexity of the development.

Key Changes to the ABSD Remission Deadline

Under current rules, developers pay an ABSD rate of 40% on residential land acquisitions, with 5% payable upfront and 35% remittable upon fulfilling the sales deadline.

The extension grants developers more breathing room, particularly for large en bloc redevelopments and projects with significant technical challenges.

For projects that meet the new criteria, the ABSD remission timeline will be extended by six months to a year for land acquired on or after March 6, 2025.

This revision aims to support developers in their efforts to undertake complex, large-scale urban transformations while maintaining housing supply stability.

Eligibility Criteria for Extended ABSD Remission

The policy extension applies to four categories of projects:

Large en bloc redevelopments – Projects that will yield at least 700 residential units or 5 times the number of existing homes upon completion.
Projects with extensive technical or infrastructure requirements – This includes developments integrated with public transport hubs or those requiring significant conservation efforts.
Strategic Development Incentive (SDI) Scheme projects – Developments approved under this initiative, which promotes innovative and transformative urban solutions.
Projects adopting advanced construction technologies – This includes the use of robotics, automation, or collaborative contracting methods to boost productivity.

Projects that meet one of these criteria will receive a six-month extension, while those meeting multiple criteria will qualify for a one-year extension.

Impact on Singapore’s Real Estate Market

Encouraging Urban Transformation & Redevelopment

With Singapore’s focus on rejuvenating older estates and optimizing land use, this policy change provides greater support for developers who wish to take on larger, infrastructure-heavy projects.

By extending the ABSD remission timeline, the government is encouraging developers to invest in long-term urban transformation efforts without the pressure of short deadlines.

Boosting En Bloc Redevelopment Activity

The en bloc market in Singapore has faced challenges in recent years, with developers cautious about acquiring sites due to stringent sales deadlines.

The extended remission period could renew interest in en bloc purchases, particularly for large-scale redevelopment opportunities in mature estates.

Stabilizing Housing Supply & Pricing

By allowing developers more time to complete and sell projects, this policy reduces the likelihood of rushed launches and unsold inventory, which can impact pricing.

The additional time also enables developers to implement higher-quality, sustainable designs that align with Singapore’s urban planning goals.

Expert Opinions & Industry Reactions

Government’s Perspective

Minister Desmond Lee emphasized that this policy update will support developers in their urban transformation efforts, particularly for projects that require significant planning and construction innovation.

The government aims to balance housing supply needs with long-term urban redevelopment goals.

Developers’ Reactions

Real estate analysts and developers have welcomed the move, stating that the extension provides much-needed flexibility for large-scale projects.

With rising construction costs and regulatory requirements, the additional time will help developers optimize project execution while ensuring quality urban planning and integration.

What’s Next for Developers & Investors?

Key Takeaways for Developers

More time for completion and sales of complex en bloc and urban transformation projects.
Higher confidence in undertaking large-scale redevelopments without the risk of ABSD penalties.
Encouragement to adopt new construction technologies to improve efficiency and productivity.

Opportunities for Investors & Homebuyers

Increased en bloc activity, creating new investment opportunities in high-potential redevelopment zones.
Future developments may feature better infrastructure, smart city integration, and sustainable living solutions.
More strategic project launches, potentially leading to better housing options and stable property prices.

The extension of the ABSD remission deadline marks a significant shift in Singapore’s real estate policy, offering developers greater flexibility to undertake large-scale en bloc redevelopments and complex urban transformation projects.

With the potential to revitalize older estates and drive more strategic urban planning, this policy update is expected to shape the future of Singapore’s property market in 2025 and beyond.

As developers assess new en bloc opportunities, the industry is watching closely to see how this policy change will influence redevelopment trends, investment strategies, and the overall housing market in the coming months.

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