'Errant' housing developers will be disqualified from government land sales, barred from selling projects for up to five years

EdgeProp Singapore

/ EdgeProp Singapore

May 22, 2026 1:27 PM SGT

propertyeditor@edgeprop.sg

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Private land sales, such as en bloc sales of condos between existing property owners and developers, are excluded. (Photo: Samuel Isaac Chua/EdgeProp Singapore)

To better protect Singapore homebuyers’ interests, the authorities have put in place two new measures to further deter severe errant behaviour by property developers, including delivering private housing projects with major defects or flouting regulations in ways that compromise safety.

Taking effect from May 22 are the Land Sales Disqualification Framework and the Sales Suspension Framework, according to a circular jointly issued by the Ministry of National Development, URA and the Building and Construction Authority.

These come in addition to existing safeguards to ensure the workmanship quality of housing projects and deter housing developers from delivering defects-ridden projects to homebuyers.

The new rules apply to developers who deliver homes with "severe regulatory non-compliances" that affect safety of the occupants or the general public — examples are wall collapses, serious fire hazards or flooding that result in major damages or accidents — or those who demonstrate "recalcitrant" behaviour by having consecutive projects with major defects, the circular noted.

The frameworks may also apply to relevant parties such as the directors and substantial shareholders of an errant developer, as they may have oversight of and control over business decisions.

Firstly, under the Land Sales Disqualification Framework, developers with such errant behaviour may be disqualified from participating in government land sales for sites with residential components, for up to five years.

This refers to all land launched for tender or sale on or after May 22, by ministries, organs of state, departments and statutory boards, where residential units are allowed to be developed.

Private land sales, such as en bloc sales of condos between existing property owners and developers, are excluded.

Secondly, under the Sales Suspension Framework, errant developers may be placed on a sales suspension list for up to five years. A no-sale licence condition will be imposed on their future unlaunched projects for a period of up to five years.

To assess whether a developer and its relevant parties should be subject to either or both frameworks, and to determine how long they should be disqualified or suspended for, the authorities will consider several factors.

These include the number and severity of non-compliances and major defects in relation to the scale of the project, the time taken for the developer to rectify the issues, and whether it affects safety and liveability.

A potential errant developer, its directors and substantial shareholders will receive early warnings and have the opportunity to make representations or rectifications before any penalties are determined.

"Overall, the majority of developers have delivered quality private housing projects to home buyers," the circular stated. The new frameworks are thus not expected to affect the majority of real estate developers, as most have complied with existing measures.

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