{"id":50742,"date":"2017-04-03T12:15:58","date_gmt":"2017-04-03T05:15:58","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/spore-property-developers-face-a-dilemma-after-rule-changes\/"},"modified":"2017-04-03T13:11:24","modified_gmt":"2017-04-03T06:11:24","slug":"spore-property-developers-face-a-dilemma-after-rule-changes","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/spore-property-developers-face-a-dilemma-after-rule-changes\/","title":{"rendered":"S\u2019pore property developers face a dilemma after rule changes"},"content":{"rendered":"


\n\u00a0
\nProperty developers in Singapore are faced with a difficult decision after the government closed a tax loophole that enabled them to offload residential units in bulk to institutional investors and wealthy individuals, reported Bloomberg.
\nThis is to discount unsold luxury houses or pay penalties for failure to meet government-mandated sales deadlines.
\nTo prevent land hoarding, the government now requires developers with non-Singaporean shareholders or directors to complete construction of projects and obtain the Temporary Occupation Permit within five years of acquiring the land. They are given another two years to sell all residential units or face hefty fines.
\nSince December 2011, developers have been given a five-year period to sell all units within a project or pay 10 percent of the land price as penalty.
\nDevelopers skirted the rules by selling the houses in bulk via a share transfer to wealthy investors, who pay lower stamp duty.
\nBut with the tax loophole now closed, developers may be forced to offer the residential units at a discount, which could prolong the three-year decline in property values. Paying the penalty, on the other hand, could prove to be more costly.
\nIndustry estimates based on official data shows that around 2,098 residential units remain unsold across 57 projects, with penalties for these units reaching about $647 million this year.
\n\u201cThis could incentivise them to give greater discounts to buyers who have been waiting on the sidelines for further price corrections,\u201d said Christine Li, Director of Research at Cushman & Wakefield Singapore.
\nShe noted that smaller developers may offer bigger discounts while bigger developers may hold out.
\n\u201cPaying the penalties will still be the last resort,\u201d she noted.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…S\u2019pore property developers face a dilemma after rule changes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Property developers in Singapore are faced with a difficult decision after the government closed...<\/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-50742","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-dcq","jetpack-related-posts":[{"id":64372,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-to-focus-on-smaller-sites\/","url_meta":{"origin":50742,"position":0},"title":"Developers to focus on smaller sites","date":"August 23, 2017","format":false,"excerpt":"\r \u00a0 While homes sales have been on the uptrend, some developers are expected to focus on smaller residential developments at the H2 2017 Government Land Sales (GLS), revealed an Edmund Tie & Company report. This comes as developers try to mitigate the risk of incurring Additional Buyers Stamp Duties\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":116153,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/government-unveils-temporary-relief-measures-for-property-developers-individuals\/","url_meta":{"origin":50742,"position":1},"title":"Government unveils temporary relief measures for property developers, individuals","date":"May 8, 2020","format":false,"excerpt":"\r Singaporean married couples will now have a year instead of six months to sell their first property in order to get the ABSD remission for their second property.\u00a0 The Singapore government has rolled out temporary relief measures for individuals and property developers affected by disruptions to sales of housing\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":50742,"position":2},"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":[]},{"id":159323,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hong-kong-developers-to-offer-more-than-200-flats-amid-rate-optimism\/","url_meta":{"origin":50742,"position":3},"title":"Hong Kong developers to offer more than 200 flats amid rate optimism","date":"August 15, 2025","format":false,"excerpt":"\r Hong Kong developers are selling more than 200 residential units on Friday, taking advantage of improved buying sentiment fuelled by anticipation that interest rates will start to fall as early as next month. Two projects account for most of the available homes. A consortium led by Sino Land will\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":50742,"position":4},"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. 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About 180 of the 208 units the company released at the fourth round sale of its Grand Central residential project in\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\/50742"}],"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=50742"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/50742\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=50742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=50742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=50742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}