Anti-speculation property measures have their side effects
It may be wise to study how developers' creative ways to sidestep paying QC and ABSD penalties hurt the wider economy
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QUALIFYING certificate (QC) rules have generally been effective in curtailing property speculation, but pressured developers, using innovative ways to escape the harsh penalties, raise the question of whether the policy's efficacy outweighs some of its unintended consequences.
QC rules were enacted to prevent foreign developers from hoarding or speculating on residential land in Singapore. After the global financial crisis, developers tended to delay their project launches and hold out for a good launch window.
But they can no longer do so, with the rules now requiring all foreign and listed developers to finish building their projects within five years of acquiring the site; they also have to sell all the units within two years of obtaining a temporary occupation permit.
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