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Full listing of latest launch condos (with unsold models) approaching their developer ABSD deadlines in 2023/2024

Property costs have been on the rise within the final couple of years, with costs of latest launch condos up by 42.28% from 2020 to 2023 (as of writing, in keeping with Researcher knowledge).

Not like final yr, which noticed lower than 20 new launches and a good new house provide, round 10,000 models are anticipated to enter the market this yr throughout round 40 new launches.

Regardless of all these, there’s nonetheless some potential discount to look out for among the many new launch condos approaching their ABSD deadlines in 2023 and 2024.

What’s the hype round new launch condos with approaching ABSD deadlines?

The factor in regards to the Extra Purchaser’s Stamp Obligation (ABSD) is that they aren’t simply paid by Singaporeans shopping for their subsequent residential properties (or any house purchased by PRs and foreigners).

Builders will even must fork out the ABSD after they purchase land, whether or not it’s by means of an en bloc sale or GLS. After the December 2021 cooling measures, the speed has elevated from 25% to 35%, on prime of the 5% that’s non-remissible. The 35% ABSD (or 25% earlier than the rise) can solely be remitted if the developer manages to dump all of the models of the challenge inside 5 years, whatever the dimension of the event.

Due to this, there’s an opportunity that new condos with upcoming ABSD deadlines, and nonetheless have unsold models, will supply developer reductions.

With that, our knowledge staff has crunched the numbers and compiled the total listing of such new launch condos with ABSD deadlines in 2023 and 2024.

Full listing of latest launch condos with unsold models and approaching ABSD deadlines in 2023 and 2024

(Notice: This listing was first compiled on 19 April 2022, and has been up to date as of 13 Apr 2023.)

Which new launch condos can have reductions?

Right here’s a disclaimer: whereas there’s a risk that a few of these new launch condos will supply reductions, we are able to’t assure them.

Some builders might even resolve to not give out any low cost as doing so might upset patrons who’ve purchased the models earlier at a premium.

However primarily based on what occurred to older condos that have been approaching their ABSD deadlines up to now few years, we are able to roughly listing out conditions in which you’ll be able to count on developer reductions.

1. Hearth sale for condos with a small variety of unsold models

Often, these new launch condos have a take-up price of round 80 to 90% (or a small variety of models left unsold) after they’re near the ABSD deadline. In spite of everything, it doesn’t make any monetary sense to pay the exorbitant ABSD simply because the developer couldn’t dump a number of extra models by the deadline.

So to clear the remaining inventory, the developer might give out reductions to promote these models. That is normally referred to as the fireplace sale.

One factor to notice about these models is that they’re likely leftovers, so that they might not be as fascinating. They could possibly be west-facing, have a foul format or are simply too costly (eg. a penthouse).

An instance of a hearth sale is when the developer of 38 Jervois gave out 13 to 24% reductions to dump 16 models in 2020. This was massively profitable as they managed to dump these remaining models inside three days.

38 jervois condo facade
The 16 remaining models of 38 Jervois have been offered out in three days. Picture credit score: Google

In addition to fireplace gross sales, there have additionally been cases the place the developer affords a stay-then-pay plan, a sort of deferred cost scheme. CapitaLand launched it again in 2016 to promote the remaining models of d’Leedon and The Interlace.

Via the scheme, not solely did patrons get pleasure from a reduction, however have been additionally allowed to maneuver in after exercising the Choice to Buy (OTP). They may then make the downpayment inside eight weeks and pay the steadiness one yr later.

New launch condos TOP-ing quickly


2. Reductions on renovation, furnishings, stamp obligation, and so forth.

In addition to reductions on the models, some builders can also supply reductions on renovations and furnishings. One other promotion entails promoting the unit with the inside design.

Apart from fittings and furnishings, we’ve additionally heard of reductions on the Purchaser’s Stamp Obligation (BSD).

With impact from 15 February 2023, the marginal BSD price for residential properties has been elevated for properties above S$1.5 million.

Right here’s the brand new BSD price:

Buy worth or worth BSD price
First S$180,000 1%
Subsequent S$180,000 2%
Subsequent S$640,000 3%
Subsequent S$500,000 4%
Subsequent S$1.5 million 5%
Remaining quantity  6% 

3. Bulk reductions for condos with a low take-up price 

The developer can also supply bulk reductions, however to funding corporations as an alternative of particular person patrons.

An instance of that is the majority sale to UOB’s chairman emeritus Wee Cho Yaw again in 2017 when he purchased 45 unsold models of The Nassim by means of his actual property arm Kheng Leong. The deal amounted to S$411.6 million, translating to a bulk low cost of round 18%. The condominium has a complete of 55 models.

The Nassim
45 models of The Nassim have been purchased in bulk by actual property arm Kheng Leong.

The deal helped developer CapitaLand keep away from the Qualifying Certificates (QC) penalties, which they must pay if they might not end constructing the challenge inside 5 years and promote all models inside two years of TOP.

(The rule has since modified in 2020, permitting listed builders with a considerable connection to Singapore to be exempted from the QC guidelines.)

However the identical technique will also be utilized to keep away from paying the ABSD. Builders can promote the models in bulk to funding corporations, after which they’ll merely hire them out for rental revenue.

And in contrast to the developer, there’s no deadline for these corporations to dump the models. To allow them to maintain on to them for capital appreciation earlier than offloading them a number of years later.

Or, if there are simply too many unsold models and there aren’t sufficient bulk gross sales to promote out the challenge, the developer may find yourself paying the ABSD.

If you happen to discovered this text useful, recommends Actress Hong Ling snags freehold Balestier condominium in gorgeous fireplace sale and Professionals and cons of shopping for public sale properties.



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