Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
The Developer ABSD Rate
When a property developer (company or entity) purchases residential land in Singapore — whether through a government land sale (GLS), private land acquisition, or a collective sale (en-bloc) — ABSD applies at the entity rate. As at Q2 2026:
| Buyer Type | ABSD Rate | Remittable? |
|---|---|---|
| Housing Developer (licensed) | 40% (35% remittable + 5% non-remittable) | 35% refundable if conditions met; 5% non-refundable |
| Entity (general — companies, trusts) | 65% | No remission available for general entities |
The developer rate of 40% replaced the prior 35% rate following the April 2023 cooling measures. The breakdown is:
- 35% remittable ABSD: Can be refunded if the developer meets the completion and sale conditions within the prescribed timeframe
- 5% non-remittable ABSD: Payable upfront and not refundable under any circumstances — this is a sunk cost of the land acquisition
Remission Conditions
To qualify for a refund of the 35% remittable ABSD, a licensed housing developer must satisfy both of the following conditions within the required timeframe:
Condition 1: Complete Construction
The developer must obtain a Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) for all units in the development within 5 years from the date of the land purchase (or the date of the last purchase, in a collective sale involving multiple lots).
Condition 2: Sell All Units
The developer must sell all residential units in the development within 5 years from the date of the land purchase. All units must be sold — even one unsold unit at the 5-year mark means the remission does not apply to any portion of the ABSD.
Both conditions must be met within the same 5-year window. If a developer successfully builds all units and sells all units within 5 years, the 35% ABSD (paid upfront at land acquisition) is refunded by IRAS.
The 5-Year Clock and Developer Sales Strategy
The 5-year remission deadline creates significant timeline pressure on developers. For a developer who paid $200M for a residential land parcel:
- 5% non-remittable ABSD = $10M sunk cost (certain)
- 35% remittable ABSD = $70M at stake if all units are not sold within 5 years
This creates a strong incentive for developers to:
- Launch sales as early as possible (VVIP previews, early bird pricing) to begin the sales clock
- Price aggressively in the final 12–18 months before the 5-year deadline to clear remaining unsold inventory
- Offer additional incentives (furnishing packages, legal subsidy, stamp duty absorption) on slow-moving units as the deadline approaches
Agent note: A developer approaching the 5-year deadline with unsold units is under significant financial pressure. Agents representing buyers at such developments may have more negotiating leverage on price or terms than in a typical new launch. Always check how long a development has been on sale and how many units remain before advising a buyer on negotiation strategy.
Qualifying Certificate for Foreign-Listed Developers
Developers with foreign shareholders (entities listed on foreign stock exchanges, or with significant foreign ownership) must also obtain a Qualifying Certificate (QC) from the Singapore Land Authority (SLA) when purchasing private residential land. The QC imposes additional conditions:
- Development must be completed within 5 years of land purchase
- All units must be sold within 2 years of obtaining TOP (or within 5 years from purchase — whichever is earlier)
- Extension fees apply for each year of non-compliance (currently 8%, 16%, and 24% of the land price for years 1, 2, and 3 of extension respectively)
The QC timeline is separate from the ABSD remission timeline but compounds the sell-down pressure for foreign-listed developers. Domestically-listed and Singapore-incorporated developers are not subject to QC requirements.
How Developer ABSD Affects New Launch Prices
The non-remittable 5% ABSD is a direct cost to the developer — it increases the effective land cost and is typically passed through to buyers in the form of higher per-square-foot pricing for new launches.
For a GLS site acquired at $1 billion with 500 units to be launched:
- Non-remittable ABSD (5%) = $50 million
- Cost per unit from non-remittable ABSD alone = $100,000 per unit
This is before construction costs, financing costs, and developer margin. The non-remittable ABSD alone can add $150–$300+ psf to the break-even price of a new launch in a competitive en-bloc or GLS site.
This structural cost is one reason why new launches typically price at a premium to comparable resale condominiums in the same area — the land cost embedded in new launches includes ABSD that resale properties acquired before the April 2023 rate increase do not carry.
Using LEVR for Buyer ABSD Calculations
Understanding developer ABSD helps agents explain new launch pricing to buyers who question why new launches cost more per square foot than nearby resale comparables. LEVR’s ABSD Calculator can model the buyer’s own ABSD obligation for any new launch or resale purchase, so the agent can present the total acquisition cost — including the buyer’s ABSD — alongside the developer’s embedded land cost context.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.