Due to delays in their labor supply caused by tighter border procedures in April and May, property developers will be granted an extra six months to finish residential, commercial, and industrial projects
Other temporary relief provisions for residential developments under the qualifying certificate (QC) regimes and extra buyer’s stamp duty (ABSD) have been extended for another six months.
Both the ABSD and the QC regimes basically compel developers to start, finish, and sell all units in a residential development project within certain timeframes or face financial penalties. This is to prevent developers from hoarding and speculating on residential property.
The National Development, Finance, Law, and Trade and Industry ministries stated in a joint statement on Monday (June 28) that the construction industry has continued to face labor shortages, causing additional delays in building schedules.
Tighter border controls aimed at preventing the spread of the coronavirus have restricted the influx of migrant workers, who are largely dependent on the construction industry.
According to the ministries, the new extension of the temporary relief measures would offer targeted assistance to developers in the near future.
“The government will continue to assist developers and contractors in their efforts to finish development projects on schedule while maintaining compliance with safety measures,” they said.
The government expects developers to give relief and assistance to their major contractors and consultants as a result of the expansion of the measures.” The government will also keep a careful eye on the restoration of normalcy in the construction and real estate industries.
The interim relief measures, according to the authorities, do not change current cooling measures that effectively keep residential property prices in control.
The existing ABSD regulation will continue to apply to all home developers.
Residential developers whose property was granted on or before May 7 this year, or whose land was immediately alienated or had the lease renewed by the Singapore Land Authority (SLA) on or before that date, would benefit from the newest relief measures.
Furthermore, the initial deadline for completion of work had to have passed on or after February 1 of last year.
Under the ABSD system, these requirements also apply to the start and finish dates of residential projects, as well as the project completion dates for commercial and industrial projects on government sites or on state property.
The deadline to sell all apartments in the qualifying residential development will not be extended any further.
Meanwhile, under the QC system, qualified international home developers will be given a six-month extension fee waiver if they seek to extend their current completion dates.
To be eligible, they must have received QC or SLA approval on or before May 7, necessitating the completion of all units in the project.
The original completion date for the residential construction had to have passed on or after February 1 of last year.
According to the authorities, no additional waivers of costs to prolong the current deadline for selling all apartments in the residential construction project would be allowed.
Developers may request for the waiver by writing to the SLA’s Land Dealings Approval Unit by December 1st.
Those who have previously asked for and received a completion deadline extension under the measures announced in May and October of last year will be given the extra six-month waiver automatically.
“As we move to a new normal when Covid-19 becomes endemic,” the ministries said, “the Government will continue to assist stakeholders as required and appropriate.”
