Home prices have been rising in the last few years, with prices of new launch condos up by 51.96% from 2020 to 2024 (as of 6 September 2024, according to 99.co Researcher data).
Unlike last year, which saw less than 20 new launches and a tight new home supply, around 10,000 units are expected to enter the market this year across around 40 new launches.
Despite all these, there’s still some potential bargain to look out for among the new launch condos approaching their ABSD deadlines in 2023 and 2024.
What’s the hype around new launch condos with approaching ABSD deadlines?
The thing about the Additional Buyer’s Stamp Duty (ABSD) is that they aren’t just paid by Singaporeans buying their subsequent residential properties (or any home bought by PRs and foreigners).
Developers will also need to fork out the ABSD when buying land, whether it’s through an en bloc sale or GLS. After the December 2021 cooling measures, the rate has increased from 25% to 35%, on top of the 5% that is non-remissible. The 35% ABSD (or 25% before the increase) can only be remitted if the developer manages to sell off all the project units within five years, regardless of the size of the development.
Because of this, there’s a chance that new condos with upcoming ABSD deadlines and unsold units will offer developer discounts.
With that, our data team has crunched the numbers and compiled the full list of such new launch condos with ABSD deadlines in 2023 and 2024.
Understanding the impact of ABSD on the property market
Implementing the Additional Buyer’s Stamp Duty (ABSD) has undeniably reshaped the property market landscape in Singapore. Its primary objective was to moderate the demand for residential properties and ensure a stable and sustainable property market.
Understanding the nuances of ABSD and its implications is crucial for potential buyers. It not only affects the upfront costs but also influences the decision-making process. With developers racing against time to meet the ABSD deadlines, buyers are presented with unique opportunities to secure properties at potentially discounted rates.
However, it’s essential to approach such deals with a discerning eye, ensuring that the property aligns with one’s long-term goals and investment strategies.
The dynamics of property investment in the current climate
In the ever-evolving property market, staying informed and adaptable is key. While the ABSD has introduced an additional layer of complexity, it has opened doors to potential bargains and investment opportunities. Savvy investors are always looking for properties near their ABSD deadlines which can offer significant value.
However, it’s also essential to consider other factors such as location, future development plans in the area, and the overall potential for capital appreciation.
Additional reading: 8 new launches expected in Q2 of 2024
As with any investment, due diligence, research, and a clear understanding of the market dynamics are paramount. By leveraging the current market conditions and being strategic, investors can navigate the challenges and capitalise on the opportunities presented by the ABSD framework.
Full list of new launch condos with unsold units and approaching ABSD deadlines in 2023 and 2024
(Note: This list was first compiled on 19 April 2022 and has been updated as of 11 August 2023.)
| Project name | Estimated TOP date | Estimated ABSD deadline | Total units | Take-up rate |
|---|---|---|---|---|
| Parc Clematis | Sep-23 | Q3-2023 | 1,468 | 98% |
| Petit Jervois | Mar-22 | Q2-2023 | 55 | 36% |
| Pullman Residences Newton | Dec-23 | Q4-2023 | 340 | 89% |
| Jervois Prive | Jan-23 | Q2-2023 | 43 | 23% |
| One Holland Village Residences | Dec-24 | Q4-2023 | 296 | 98% |
| The Atelier | Mar-24 | Q3-2023 | 120 | 95% |
| One Pearl Bank | Dec-23 | Q3-2023 | 774 | 95% |
| Jervois Treasures | Mar-22 | Q1-2023 | 36 | 6% |
| Cuscaden Reserve | Jun-22 | Q4-2023 | 192 | 5% |
| The Landmark | Mar-25 | 2024 | 396 | 72% |
| Meyer Mansion | Dec-24 | 2024 | 200 | 99% |
| 15 Holland Hill | Dec-22 | Q4-2023 | 57 | 96% |
| Leedon Green | Dec-23 | 2024 | 638 | 94% |
| Hyll on Holland | Jun-25 | Q4-2023 | 319 | 97% |
| Ki Residences at Brookvale | Jun-24 | Q3-2023 | 660 | 98% |
| The Avenir | Aug-25 | Q3-2023 | 376 | 99% |
| Dalvey Haus | Dec-22 | Q4-2023 | 17 | 59% |
| Myra | Nov-24 | Q4-2023 | 85 | 93% |
| Kopar At Newton | 2023 | 2024 | 378 | 97% |
| The M | 2024 | 2024 | 522 | 98% |
Which new launch condos will have discounts?
Here’s a disclaimer: while there’s a possibility that some of these new launch condos will offer discounts, we can’t guarantee them.
Some developers may even decide not to give out any discount as doing so may upset buyers who have bought the units earlier at a premium.
But based on what happened to older condos approaching their ABSD deadlines in the past few years, we can roughly list situations where you can expect developer discounts.
1. Fire sale for condos with a small number of unsold units
Usually, these new launch condos have a take-up rate of around 80 to 90% (or a small number of units left unsold) when they’re close to the ABSD deadline. After all, paying the exorbitant ABSD doesn’t make any financial sense because the developer couldn’t sell off a few more units by the deadline.
So, to clear the remaining stock, the developer may offer discounts to sell these units. This is usually called the fire sale.
One thing to note about these units is that they’re probably leftovers, so they may not be as desirable. They could be west-facing, have a bad layout, or are too expensive (e.g., a penthouse).
An example of a fire sale is when the developer of 38 Jervois gave out 13 to 24% discounts to sell off 16 units in 2020. This was hugely successful as they managed to sell off these remaining units within three days.
Besides fire sales, there have also been instances where the developer offers a stay-then-pay plan or a deferred payment scheme. CapitaLand introduced it in 2016 to sell the remaining units of d’Leedon and The Interlace.
Through the scheme, buyers enjoyed a discount and were allowed to move in after exercising the Option to Purchase (OTP). They could then make the downpayment within eight weeks and pay the balance one year later.
New launch condos TOP-ing soon
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2. Discounts on renovation, furniture, stamp duty, etc.
Besides discounts on the units, some developers may also offer discounts on renovations and furniture. Another promotion entails selling the unit with the interior design.
Aside from fittings and furnishings, we’ve also heard of discounts on the Buyer’s Stamp Duty (BSD).
Since 15 February 2023, the marginal BSD rate for residential properties has been increased for properties above S$1.5 million.
Here’s the new BSD rate:
| Purchase price or value | BSD rate |
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Next S$640,000 | 3% |
| Next S$500,000 | 4% |
| Next S$1.5 million | 5% |
| Remaining amount | 6% |
3. Bulk discounts for condos with a low take-up rate
The developer may offer bulk discounts to investment firms instead of individual buyers.
An example is the bulk sale to UOB’s chairman, emeritus Wee Cho Yaw, in 2017 when he bought 45 unsold units of The Nassim through his real estate arm, Kheng Leong. The deal amounted to S$411.6 million, translating to a bulk discount of around 18%. The condo has a total of 55 units.
The deal helped developer CapitaLand avoid the Qualifying Certificate (QC) penalties, which they would have to pay if they could not finish building the project within five years and sell all units within two years of TOP.
(The rule changed in 2020, allowing listed developers with a substantial connection to Singapore to be exempted from the QC rules.)
However, the same strategy can also be applied to avoid paying the ABSD. Developers can sell the units in bulk to investment firms, after which they can rent them out for rental income.
Unlike the developer, these firms have no deadline for selling the units. So they can hold on to them for capital appreciation before offloading them a few years later.
Or, if there are just too many unsold units and there aren’t enough bulk sales to sell out the project, the developer may end up paying the ABSD.
Singapore’s real estate market outlook in 2024
In 2024, Singapore’s real estate market continues to evolve, offering many opportunities for investors and homebuyers. The surge in demand for new launch condos, especially those nearing their ABSD deadlines, signifies a dynamic shift in the market. This trend is influenced by the regulatory environment and changing consumer preferences and economic conditions. Prospective buyers are increasingly drawn to the potential discounts on offer, making developments like Parc Clematis, Petit Jervois, and Pullman Residences Newton hot topics in property discussions. Understanding these market trends is crucial for making informed decisions, whether you’re a first-time buyer or a seasoned investor.
Navigating the ABSD landscape
The Additional Buyer’s Stamp Duty (ABSD) plays a pivotal role in shaping Singapore’s property landscape. For developers, the looming ABSD deadlines create a sense of urgency to sell remaining units, potentially leading to attractive deals for buyers. However, potential buyers must stay updated on the latest regulations and market developments. Keeping an eye on projects like One Holland Village Residences and The Atelier, approaching their ABSD deadlines could unveil unique investment opportunities. Due diligence and a thorough market understanding are key to capitalising on these opportunities.
Planning to sell your condo soon? Let us help you get the right price by connecting you with a premier property consultant.
If you found this article helpful, 99.co recommends Actress Hong Ling snags freehold Balestier condo in stunning fire sale and Pros and cons of buying auction properties.
Frequently asked questions
What is the significance of ABSD deadlines in the context of new launch condos?
ABSD deadlines are crucial for both developers and buyers of new-launch condos. Developers face penalties if they fail to sell all units within a specified timeframe, leading them to offer potential discounts to clear unsold inventory.
How does ABSD affect property developers?
Developers must pay ABSD when purchasing land for development, with rates increasing recently. Failure to sell all units within the stipulated timeframe results in non-remissible ABSD payments, motivating developers to offer discounts to avoid penalties.
What opportunities do approaching ABSD deadlines present for buyers?
Buyers can secure discounts on new launch condos as developers strive to meet ABSD deadlines. Units nearing their deadlines may be offered at reduced prices or come with additional incentives such as deferred payment schemes or discounted stamp duty fees.
Are discounts guaranteed for new launch condos with approaching ABSD deadlines?
While discounts are possible, they are not guaranteed. Some developers may refrain from offering discounts to avoid upsetting buyers who purchased full-price units. Discounts are more likely for condos with a small number of unsold units nearing the ABSD deadline.
What discounts can buyers expect for new launch condos approaching ABSD deadlines?
Discounts may include reduced prices on units, discounts on renovation and furniture packages, or even discounted stamp duty fees. Sometimes, developers offer bulk discounts to investment firms to offload the remaining inventory.
How can buyers navigate the ABSD landscape to capitalise on potential discounts?
Buyers should stay informed about projects nearing ABSD deadlines and be prepared to act swiftly when discounts are offered. Conducting thorough research, understanding market trends, and consulting with real estate professionals can help buyers make informed decisions and capitalise on opportunities.
What should buyers consider when evaluating new launch condos with approaching ABSD deadlines?
Buyers should consider location, unit specifications, and potential for capital appreciation alongside discounts. Ensuring that the property aligns with long-term goals and investment strategies is essential for making a sound investment decision.
About Virginia Tanggono
Virginia covers the property news in Singapore, from record sales to profile stories on home ownership. In her free time, she occasionally searches for spoilers of movies and TV shows.
Looking to sell your property?
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Hello,
I just read your blog post about the potential impact of unsold units on new launch condos in Singapore and wanted to drop a comment to share my thoughts. As someone who is considering purchasing a new launch condo, I found your post to be very informative and helpful in understanding the potential risks and implications of an unsold unit.
I appreciated the detail you provided on the Additional Buyer’s Stamp Duty (ABSD) and the deadlines involved. Your analysis of the potential consequences of unsold units, such as additional costs and regulatory implications, was also insightful in understanding the importance of the issue.
The mention of the possible options for developers, such as en-bloc sales or rental options, was helpful in understanding the potential solutions to this issue.
Overall, I found your blog post to be a valuable resource for anyone considering purchasing a new launch condo in Singapore. Thank you for sharing your expertise and analysis on this topic!
How do I keep track of the upcoming sales? Thanks in adv
How do I keep track of upcoming fire sales raised by the developers? Thanks in adv
Hi Kev, you can always reach out to any agents on our website who are promoting these properties which you’re watching for, and get them to be in touch with you.