SG govt extends ABSD timelines for large-scale en bloc redevelopments, giving housing developers more time to complete & sell units

The government has announced changes to the Additional Buyer's Stamp Duty (ABSD) regime to better support licensed housing developers taking on large-scale en bloc redevelopments, with effect from Jul. 29, 2026.

The changes were announced in a joint press release by the Ministry of Finance and Ministry of National Development on Jul. 28.

How the current system works

Licensed housing developers purchasing residential land are currently subject to 40 per cent ABSD.

Of this, 5 per cent is non-remittable, while the remaining 35 per cent can be remitted but only if developers meet three timelines: starting construction within two years, completing the development within five years, and selling all units within five years of acquiring the site.

What is changing

Under the revised framework, large en bloc sites are now split into two categories based on how many residential units they yield upon redevelopment.

Large sites, classified as Category 1A, cover projects yielding between 700 and 1,399 residential units. Their completion and sale timelines will be extended to six years, up from 5.5 years.

Mega sites, classified as Category 1B, cover projects yielding 1,400 units or more. These will get seven years to complete and sell, up from 5.5 years.

However, developers of mega sites must sell at least 50 per cent of residential units by the end of six years or face the full ABSD clawback on the 35 per cent remittable component with interest.

Both categories require the redevelopment to yield at least 1.5 times the number of residential units in the existing development.

The commencement timeline of 2.5 years remains unchanged for both categories.

Extra six months for complex projects

In Mar. 2025, the government introduced the ABSD Remission Timeline Extension Framework for Complex Projects, which allows qualifying developers to apply for a six-month extension to their ABSD remission timelines, or 12 months if they qualify under more than one category.

Under today's changes, projects that qualify under more than one category of the ABSD Remission Timeline Extension Framework for Complex Projects will receive an additional six-month extension on top of the ABSD remission timelines, bringing the total to 6.5 years completion and sale timeline for Large Sites, and 7.5 years for Mega Sites.

The commencement timeline for such sites would be three years.

Mega Sites under this additional extension must still sell at least 50 per cent of units by the end of year six.

Why the change

The government said the revisions are aimed at supporting housing developers in undertaking large-scale redevelopments, which can help rejuvenate older estates and increase housing supply to meet ongoing demand.

For more details, visit the IRAS website.