Time is running out for some unsold residential projects due for the five-years ABSD deadline. Developers are ramping up their marketing efforts to move the sale in order to avoid multimillion-dollar ABSD five-years penalties. In fact, recently we have seen more projects offering the deferred payment scheme in the high-end residential project and initiated various marketing and promotional activities such as CDL Dream Draw and star-buy discounts from other developers.
Unsold units face additional pressure but fire sales unlikely.
Under the rules, a developer must build and sell all units in residential projects within five years of buying the site. Failing that, they will face with a 10 percent levy on the sites's purchase price plus a 5 percent interest. This rule was later changed to 15 percent for the site that was bought on or after Jan 12, 2013.
Projects such as Bartley Ridge by CDL and The Trilinq by IOI Properties will be the first to hit the deadline soon. But CDL said they are confident of clearing the last two unsold unit at Bartley Ridge. But, the situation is different on The Trillinq as the project still has over 300 unsold units out of 755 units of the projects at the time of writing.
However, developers with at least 60% of units sold in a residential project can consider setting up a company to buy the rest as it will work out to be cheaper than paying the penalties.
Others project hitting the deadline soon is Mon Jervois in district 10 in February 2017, Pollen & Bleu in June and Alex Residences in December next year.