Tier Additional Buyer's Stamp Duty and Selling Deadlines for Development Projects of Different sizes

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.

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.