{"id":112995,"date":"2019-12-11T16:21:23","date_gmt":"2019-12-11T09:21:23","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-chief-wants-absd-extension-to-ease-immense-pressure\/"},"modified":"2019-12-11T17:02:58","modified_gmt":"2019-12-11T10:02:58","slug":"cdl-chief-wants-absd-extension-to-ease-immense-pressure","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-chief-wants-absd-extension-to-ease-immense-pressure\/","title":{"rendered":"CDL chief wants ABSD extension to ease "immense pressure""},"content":{"rendered":"


\n(Above: The recently launched Sengkang Grand Residence by CDL)
\nOne of Singapore\u2019s largest developers, City Developments Ltd (CDL), has put the finger on the Additional Buyer\u2019s Stamp Duty (ABSD) levy imposed by the government\u00a0as the indirect cause of\u00a0the large property supply overhang in Singapore.
\nAccording to the rules, developers must develop the residential site they acquired and sell all units within the new project within five years\u00a0from the date of acquisition\/purchase\u00a0to qualify for upfront remission of ABSD\u00a0based on the purchase price of the land.\u00a0Should a developer fail to do so, it will have to pay the 25% ABSD with interest, which was raised from 15%\u00a0from 6 July 2018 onwards.
\nCDL CEO Sherman Kwek has called on the government to extend the timeline to seven or 10 years as he believes it helps to extinguish some of the pressure on developers.\u00a0
\n\u201cI hope authorities can consider lengthening the ABSD timeline to maybe seven or even 10 years so that it reduces the immense pressure on developers and prevents the current supply glut from worsening,\u201d Kwek said in a Bloomberg interview. He believes that a lengthened timeline\u00a0can\u00a0still ensure that developers do not hoard land indefinitely.
\n\u201cWith a longer permissible development and sales period, developers can then stagger their sales launches and ensure a more balanced demand and supply equation,\u201d he explained
\nWe\u2019ve had some \u201cclose shaves\u201d: CDL CEO
\nAccording to URA, Singapore has nearly 32,000 apartment units that are either under-construction or unsold \u2013 which market watchers said could take four years to clear. In November, the Monetary Authority of Singapore (MAS) warned that the supply glut could also push down property prices.
\nKwek noted that last year\u2019s cooling measures brought the ABSD penalty at a \u201cpetrifying rate\u201d of 31.25%, comprising a 25% penalty that is compounded at an annual interest rate of 5% for five years.
\nWhen asked if CDL has ever incurred ABSD, he revealed that they have been fortunate that none of their projects have ever been caught by the ABSD, albeit they had some \u201cclose shaves\u201d.
\nLevied on the total land price and not prorated to the number of remaining units, the penalty is \u201cfar too hefty and unless the land price is relatively small, I do not believe most developers can stomach such a penalty\u201d, he added.
\nSingapore property prices to remain resilient in 2020: PropertyGuru
\nDespite the large supply overhang, property prices will likely\u00a0remain stable in 2020 as the supply is gradually absorbed by the market over the next five years, according to PropertyGuru\u2019s Property Market Outlook for 2020.
\nMeanwhile, urban renewal and infrastructure benefits across Singapore will continue to bring upside for property. Specifically, the upcoming Thomson-East Coast MRT line (TEL) and Singapore-Johor Bahru Rapid Transit System (RTS)\u00a0could enhance\u00a0property value even more.
\nWhat will 2020 hold for Singapore? Read our\u00a0Property Market Outlook 2020 report\u00a0here.
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…CDL chief wants ABSD extension to ease “immense pressure”<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

(Above: The recently launched Sengkang Grand Residence by CDL) One of Singapore\u2019s largest developers, City...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-112995","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-tov","jetpack-related-posts":[{"id":36522,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-confident-of-selling-homes-before-absd-deadline\/","url_meta":{"origin":112995,"position":0},"title":"Developers confident of selling homes before ABSD deadline","date":"November 30, 2016","format":false,"excerpt":"\r The Venue Residences must be fully sold by September 2017 in order for CDL to avoid the ABSD charge. Despite the multi-million dollar fines involved if they fail to sell all their residential units within five years, property developers in Singapore are unlikely to cut home prices to attract\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8928,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/its-crunch-time-for-sg-developers-before-the-buyers-stamp-deadline\/","url_meta":{"origin":112995,"position":1},"title":"It\u2019s crunch time for SG developers before the buyer\u2019s stamp deadline","date":"March 23, 2016","format":false,"excerpt":"\r Developers are confident that they can dispose their unsold units in time Alex Residences in Redhill has 173 unsold units Some developers in Singapore are optimistic they can sell all the remaining units in their private residential projects before the stipulated deadline, even if they don\u2019t offer huge discounts,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":47277,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-to-amend-absd-rules-to-include-share-transfer\/","url_meta":{"origin":112995,"position":2},"title":"Gov\u2019t to amend ABSD rules to include share transfer","date":"March 9, 2017","format":false,"excerpt":"\r National Development Minister Lawrence Wong announced plans to plug ABSD loophole. Source: Wikimedia Commons The authorities are planning to amend the rules to plug a loophole that allows some companies to avoid paying Additional Buyers Stamp Duty (ABSD), by acquiring shares in a company that owns the property, rather\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":114099,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/public-listed-developers-welcome-qualifying-certificate-exemption\/","url_meta":{"origin":112995,"position":3},"title":"Public-listed developers welcome qualifying certificate exemption","date":"February 7, 2020","format":false,"excerpt":"\r Public-listed companies with \u2018substantial connections to Singapore\u2019 can now be exempted from the QC regime. Singapore-listed property developers welcomed the government\u2019s move to exempt publicly-listed housing developers from the Qualifying Certificate (QC) regime, if they have \u2018substantial connections to Singapore\u2019, according to a statement by the Ministry of Law\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":96181,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-capitaland-bags-prime-site-in-sengkang-central\/","url_meta":{"origin":112995,"position":4},"title":"CDL-CapitaLand bags prime site in Sengkang Central","date":"August 17, 2018","format":false,"excerpt":"\r A joint venture (JV) between CapitaLand and City Developments Ltd (CDL) has clinched a prime mixed-use site in the heart of Sengkang Central for $777.78 million ($923.6 psf ppr), announced the Urban Redevelopment Authority (URA) on Thursday (16 August). The JV said the 3.7ha (401,008 sq ft) site is\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8203,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-respite-from-mounting-extension-charges-for-developers\/","url_meta":{"origin":112995,"position":5},"title":"No respite from mounting extension charges for developers","date":"March 3, 2016","format":false,"excerpt":"\r Luxury apartments in the Orchard area. (Photo: Cheryl Marie Tay) Property developers forked out $24.9 million in extension fees last year for failing to dispose of all the residential units in their developments within the mandated period, reported The Straits Times. While this is lower than the $29.98 million\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/112995"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=112995"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/112995\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=112995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=112995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=112995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}