Media Statement | Revisions to ABSD Policy | 5 Mar 2025

“REDAS welcomes the Additional Buyer’s Stamp Duty (ABSD) policy revisions introduced by the government to address the different challenges faced by developers today. 

The extension of the ABSD sales timeline provides some much-needed flexibility for developers taking on large enbloc redevelopments, projects with complex technical or infrastructural requirements, Strategic Development Incentive projects and projects adopting new technologies for better productivity. 

ABSD was first introduced 14 years ago, in 2011. As the property market achieves greater stability, we welcome further adjustments to ABSD rules to align with today’s market conditions, to encourage urban transformation and rejuvenation. 

For instance, the 5-year disposal timeline should commence from the date the developer obtains all key relevant approvals from the authorities to launch a project for sale.  This adjustment would encourage good architecture, design and building innovation, foster sustainable built environment initiatives, and allow more time to ensure projects are executed safely. 

Another adjustment authorities can consider is waiver of ABSD for developers who have sold at least 95% of units, instead of 100%, as the remaining 5% tends to be larger units and take a longer sale period, due to a limited buyer pool since the introduction of 60% ABSD on foreign buyers.

We hope that the government can continue fine-tuning measures that differentiate among the varying idiosyncratic challenges posed by developments of different scale, composition, typology and buyer profile, to ensure continued sustainable and dynamic urban redevelopment.”