SINGAPORE – Additional temporary relief measures were unveiled on Thursday (Oct 8) for property developers affected by the Covid-19 pandemic.
They involved extending various project completion deadlines by a further six months to give construction firms more time to complete residential, commercial and industrial development given the delays caused by lockdowns and staff quarantines.
The prolonged deadlines come on top of the six-month extensions announced on May 6.
Another relief announced on Thursday extends the commencement and completion of residential projects in relation to the remission of the Additional Buyer’s Stamp Duty (ABSD)by a further six months, making the total extension 12 months.
An additional extension of up to six months will also be granted for residential projects under the Qualifying Certificate (QC) regime for foreign housing developers. This brings the total extension to up to 12 months.
The Ministries of National Development, Finance, Law and Trade and Industry noted in a joint statement that developers have raised concerns regarding the additional costs and financial penalties that may be incurred because of delays due to the pandemic.
For instance, while almost all construction projects have re-started, the full resumption of on-site operations has remained a challenge with workers being placed under quarantine if they have come in close contact with a Covid-19 case, it said.
They also noted that worksite practices that require redesign for safe-distancing have affected construction timelines.
“With these additional support measures, the Government expects developers to continue to similarly provide relief and support to their main contractors,” said the statement.
It added that additional relief measures would be implemented as necessary, so that “no stakeholder bears an undue share of the burden imposed by the Covid-19 pandemic”.
Qualifying conditions for the new extensions remain the same as those announced on May 6, when temporary relief measures were initiated.
Land for residential projects must have been bought on or before June 1, or the land was directly alienated or had their lease renewed by the Singapore Land Authority on or beforeJune 1. In addition, the original timeline for starting construction would have expired on or after Feb 1.
The conditions also apply to the commencement and completion of residential developments under the ABSD regime.
The additional extension now means eligible residential developers have three years to start building a project instead of two years without the relief measures.
Licensed developers will have six years to complete units in projects in relation to the remission of ABSD, instead of the usual five years.
However, there will be no further extension of the specified timeline to sell all units in the residential development.
No applications for the extension are necessary.
Land for commercial and industrial projects must have been awarded on or before June 1 this year or the land was directly alienated or had its lease renewed by the Singapore Land Authority on or before June 1. The original timeline for completion of the project must also have expired on or after Feb 1 this year.
Eligible developers will be notified and no application is necessary.