The Singapore Government has announced changes to the Additional Buyer’s Stamp Duty (ABSD) regime, extending timelines for large-scale en bloc redevelopments and lifting the 15-month wait-out period for downgraders purchasing non-subsidised HDB resale flats. These measures are designed to support housing developers and ease the transition for private property owners.
The ABSD remission timeline for large sites, defined as those yielding over 700 residential units, has been extended by six months to six years. Mega sites, with over 1,400 units, will see an 18-month extension to seven years. Tricia Song, Head of Research at CBRE Singapore and Southeast Asia, noted that these changes could encourage developers to pursue larger en bloc sites, which offer economies of scale and potential rejuvenation effects on precincts.
Despite the removal of size hurdles, challenges such as divergent owner interests and uncertain deal completion timelines remain. Developers often prefer Government Land Sales (GLS) sites due to transaction certainty and a more straightforward process, with GLS sites currently supplying 7,500-8,000 private condominium units annually.
The immediate lifting of the 15-month wait-out period for downgraders is expected to have a minimal impact on HDB resale prices and private home rentals. Since its introduction in September 2022, HDB has processed approximately 1,800 appeals annually to waive the wait-out period, with about 25% granted. The HDB resale market has shown signs of stabilisation, with prices declining for two consecutive quarters in the first half of 2026.
These changes aim to facilitate large-scale redevelopment projects and provide additional housing supply to meet demand, whilst easing the transition for private property owners entering the HDB resale market.
