Feb 16, 2024
Finance Minister Lawrence Wong said that housing developers will be granted some flexibility under the Additional Buyers’ Stamp Duty (ABSD) regime.
Currently, housing developers face an ABSD rate of 40% on land purchased for residential development. Of the 40% ABSD, 5% is payable upfront.
If the developer fails to sell all the residential units in its project within five years of the date of acquisition of the land, the 35% remittable component will be clawed back with interest, regardless of the number of unsold units. Sites acquired between Jul 6, 2018 and Dec 15, 2021 have a 25% remittable component.
For all projects on residential land acquired on or after Jul 6, 2018., the ABSD clawback rate will be lowered should developers sell at least 90% of each development within the prescribed sale timeline.
