Private developers’ ability to take on new projects will be constrained by the latest round of property cooling measures, as the construction sector continues to grapple with manpower shortages, rising material costs and cash flow issues caused by the Covid-19 pandemic.

The developers are also concerned they may not be able to sell all the units in their existing projects within the stipulated timeline, as sales are expected to slow down due to the increase in additional buyer’s stamp duty (ABSD) rates, said Mr Chia Ngiang Hong, president of the Real Estate Developers’ Association of Singapore (Redas), at an event on Wednesday (Feb 9).

Under the new set of measures, which kicked in on Dec 16 last year, developers purchasing land for any residential property have to pay a higher land ABSD rate of 35 per cent, up from the previous 25 per cent, on top of a non-remittable component of 5 per cent.

Developers will get back the 35 per cent ABSD only if they complete and sell all units within five years.

Read more at: https://www.straitstimes.com/singapore/developers-ability-to-take-on-new-projects-constrained-by-property-cooling-measures-says-redas