Budget 2024: ABSD concessions an ‘olive branch’ but won’t offer much relief to developers

• Additional Buyer’s Stamp Duty (ABSD) clawback rate lowered for developers who sell at least 90 per cent of units within the prescribed timeline  
• Single Singaporeans aged 55 and above now able to claim ABSD refund when they purchase a lower-value replacement private property

REVISIONS to the Additional Buyer’s Stamp Duty (ABSD) regime for land are a signal that the government acknowledges the challenges property developers face in today’s market, but will not go far in lowering costs or offering relief, market watchers said.

On Friday (Feb 16), Finance Minister Lawrence Wong announced changes that would reduce the amount of ABSD that developers have to cough up if they are not able to sell out their residential projects within the prescribed timeline. “Despite their best efforts, the developers sometimes face difficulties in meeting this timelime requirement,” he said.

The ABSD clawback rate for residential projects will be lowered for developers who sell at least 90 per cent of each development within the prescribed timeline.