{"id":8203,"date":"2016-03-03T11:30:46","date_gmt":"2016-03-03T04:30:46","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-respite-from-mounting-extension-charges-for-developers\/"},"modified":"2016-03-16T21:08:55","modified_gmt":"2016-03-16T14:08:55","slug":"no-respite-from-mounting-extension-charges-for-developers","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-respite-from-mounting-extension-charges-for-developers\/","title":{"rendered":"No respite from mounting extension charges for developers"},"content":{"rendered":"


\nLuxury apartments in the Orchard area. (Photo: Cheryl Marie Tay)
\nProperty 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.
\nWhile this is lower than the $29.98 million recorded in 2014, a recent report from Swiss bank Credit Suisse forecasts that extension charges could rise significantly this year.
\nBased on Qualifying Certificate (QC) rules, overseas developers are required to offload all the units in their private residential projects within two years of receiving the Temporary Occupation Permit (TOP). Otherwise, they must pay extension charges pro-rated to the percentage of remaining units.
\nThe Additional Buyer\u2019s Stamp Duty (ABSD) rules, implemented in December 2011, also stipulate that developers need to build, complete and sell all units within five years of buying the land. If there are any unsold units, they would be penalised with a 10 percent levy, which was subsequently increased to 15 percent for land plots purchased from 12 January 2013.
\nAccording to estimates from Credit Suisse, the total QC and ABSD charges could soar to $226 million in 2016 and $1.3 billion next year.
\nIn particular, the jointly developed Nouvel 18 by CDL and Wing Tai could take the biggest hit this year, with charges amounting to $38.2 million if all of its 156 units remain unsold. This is followed by $15.2 million for China Sonangol\u2019s TwentyOne Angullia Park near Orchard Road, and $14.6 million for Wing Tai\u2019s Le Nouvel Ardmore at Ardmore Park.
\nHowever, experts feel that the figures reported by Credit Suisse could drop as they only cover unsold units as of 31 December 2015.
\n\u201cThe QC fees estimate is based on the assumption that developers do not sell any more units. That\u2019s unlikely. As they continue to move units, the fees payable will drop.\u201d Likewise for the ABSD charges, said Ku Swee Yong, CEO of Century 21 Singapore.
\nWong Xian Yang, OrangeTee\u2019s Senior Manager for Research and Consultancy, reckons that developers with more unsold units may pursue other means of selling their projects instead of just reducing prices. They may consider bulk sales, which is being done for iLiv@Grange.
\nProperty firm Heeton Holdings has been seeking a buyer to purchase the 30-unit condominium. If it fails to secure a deal by October 2016, it will have to pay its second QC extension.
\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…No respite from mounting extension charges for developers<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Luxury apartments in the Orchard area. (Photo: Cheryl Marie Tay) Property developers forked out $24.9...<\/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-8203","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\/p75ss1-28j","jetpack-related-posts":[{"id":116153,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/government-unveils-temporary-relief-measures-for-property-developers-individuals\/","url_meta":{"origin":8203,"position":0},"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":32395,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hiap-hoe-buys-up-unsold-units-at-luxury-condo-to-avoid-hefty-fines\/","url_meta":{"origin":8203,"position":1},"title":"Hiap Hoe buys up unsold units at luxury condo to avoid hefty fines","date":"October 31, 2016","format":false,"excerpt":"\r Located in prime District 9, Waterscape At Cavenagh still has 50 unsold units. (Artist\u2019s impression) To avoid paying additional extension charges for the 50 remaining units at Waterscape At Cavenagh, the developer of the 200-unit freehold residential project in District 9 had no choice but to be acquired by\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":8203,"position":2},"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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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":34824,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/primary-sales-take-up-prices-may-not-be-sustainable\/","url_meta":{"origin":8203,"position":4},"title":"Primary sales take-up, prices may not be sustainable","date":"November 18, 2016","format":false,"excerpt":"\r Industry sources have said it is too early to tell if primary property sales take-up and prices will be sustainable. The sustainability of primary sales take-up and prices remain unclear, given the bleak economic outlook and the substantial new supply coming onstream, reported The Business Times, citing the Real\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":112995,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-chief-wants-absd-extension-to-ease-immense-pressure\/","url_meta":{"origin":8203,"position":5},"title":"CDL chief wants ABSD extension to ease "immense pressure"","date":"December 11, 2019","format":false,"excerpt":"\r (Above: The recently launched Sengkang Grand Residence by CDL) One 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. According to the rules, developers\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\/8203"}],"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=8203"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/8203\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=8203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=8203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=8203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}