Longer ABSD remission timelines for developers of large and mega en bloc sites
Developers to complete and sell all homes in 6 years for sites yielding 700-1,399 homes; and in 7 years for 1,400 or more units. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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For complex en bloc projects that can yield 700 or more homes, property developers will get more time to complete and sell all residential units before the 35% portion of additional buyer’s stamp duty (ABSD) can be remitted to them.
The extended remission timelines will apply to large and mega sites purchased on or after July 29 this year, said the Ministry of Finance (MOF) and Ministry of National Development (MND) in a July 28 announcement.
This is meant to support licensed housing developers in undertaking large-scale en bloc redevelopments, and thereby rejuvenate those sites and produce additional housing supply, the announcement added.
Large en bloc sites, classified as Category 1A, can yield 700 to 1,399 residential units. The ABSD completion and sale timeline is now six years, up from 5.5 years.
Mega en bloc sites, or Category 1B, can yield 1,400 or more homes. Developers will have seven years to complete such projects and sell all homes to qualify for the ABSD remission, up from 5.5 years.
In addition, mega sites will face an intermediate sales condition. Developers will be required to sell at least half of the residential units at the end of six years. If they fail to do so, the 35% remittable component of the ABSD with interest will be clawed back in full at the end of six years.
Current and revised remission timelines for collective sale sites, by no. of residential units and intensification factor after redevelopment:
#For large and mega sites, a separate six-month extension applies to these timelines if the project falls within more than one category of the ABSD(HD) Remission Timeline Extension Framework for Complex Projects, bringing the total timelines to 6.5 and 7.5 years respectively. Note: The intensification factor is the no. of residential units upon redevelopment divided by the no. of residential units of the existing development. Source: MOF, MND.
Both large and mega sites are currently under a single Category 1, with a completion and sale timeline of 5.5 years.
The commencement timeline remains at 2.5 years for both, which means housing developments must start within 2.5 years from the date of acquisition of the site.
To qualify for the extended completion and sale timelines, the minimum intensification factor remains at 1.5 times. That means the number of residential units upon redevelopment is required to be at least 1.5 times the number of residential units in the existing development.
On top of the latest changes, an additional extension of six months to the ABSD remission timelines will continue to be granted if the large or mega sites also have complex technical or infrastructural requirements, are approved under the Strategic Development Incentive (SDI) scheme, or adopt new construction technologies to achieve higher productivity targets.
Those fall under the existing Categories 2 to 4 under the ABSD(HD) Remission Timeline Extension Framework for Complex Projects, which was implemented in March 2025 to provide a six-month extension.
That means large or mega sites that also qualify for another category within the framework will receive the six-month extension too, giving them a commencement timeline of three years, up from 2.5 years. Completion and sale timelines will also increase to 6.5 years for such large sites and 7.5 years for mega sites.
Licensed housing developers buying residential land are subject to 40% ABSD — comprising a 35% upfront remittable component and 5% that is not remittable.
The 35% with interest will be clawed back by the authorities if the developer does not start development, complete it and sell all housing units by the stipulated timelines.
These conditions are intended to inject housing supply in a timely way, and to encourage housing developers to bid for land prudently.
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