Developer ABSD Deadlines: The Ultimate Guide to Potential Fire Sales Condos in Singapore (2023)

Condos in Singapore are expensive. Duh! According to the Singapore Property Market Report Q2 2023, asking sale prices of non-landed private property listings on PropertyGuru increased by 0.9% in Q1 2023, marking the thirteenth consecutive quarter of growth.

We feel you. In an era where condos are more expensive than they’ve ever been, we’re sure that homeowners and potential investors are certainly on the lookout for a good bargain.

And one way to buy condos for ‘cheaper’ is to look out for condo fire sales. But what are condo fire sales? In this article, we’ll explain all you need to know about developer ABSD deadlines and how they’re related to upcoming condo fire sales.

Table of contents:

1. What are developer ABSD deadlines? What are condo fire sales?
2. Which new launch condos may see discounts in 2023?
3. New launch condos approaching their developer ABSD deadlines in 2023
4. Five condos that could go on condo fire sale
5. Should I buy a condo in 2023?

What Are Developer ABSD Deadlines? What Are Condo Fire Sales?

Tl;dr, Additional Buyer’s Stamp Duty (ABSD) is a property tax levied on certain buyers. In this particular case, we’re looking at property developers and the amount of ABSD they must pay.

Upfront developer ABSD is 40% of the land price, which brings the actual cost of buying land for developers to 140% of its selling price. Sounds like tough luck? There is a way for developers to obtain an ABSD remission of 35% of the land price – meaning they end up paying the 5% non-remittable ABSD as developers.

In order to get the ABSD remission, they must sell all the units in their development within five years. So, as you can imagine, as the five-year ABSD developer deadline approaches, developers are likely going to be more motivated to sell their remaining unsold units.

That’s where you, dear prospective buyer, come in. When developer ABSD deadlines start to loom over their heads and you’re lucky, it means that you could get to buy a brand-new condo at a lower price than similar units previously sold for. These ‘discounts’ are also known as condo fire sales.

Which New Launch Condos May See Discounts in 2023?

According to Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group, “condos with a large number of unsold units are likely to enjoy the biggest discounts”.

“Between discounting their remaining unsold units and incurring 30% of the land price for ABSD, developers know that price-sensitive buyers will likely snatch up leftover units for the right cost. This is especially so for condos located within the Core Central Region (CCR).

By contrast, developers of condos with fewer remaining unsold units are less likely to worry about not selling them off before their developer ABSD deadlines.”

New Launch Condos Approaching Developer ABSD Deadlines in 2023

5 Condos That Could Go on Condo Fire Sale

Note: This list is curated based on the new launch condos approaching their developer ABSD deadlines in 2023. While there is a chance that these condos may go on fire sale, we cannot 100% confirm that they will.

1. One Pearl Bank

This 99-year leasehold condo development is in the Outram area, very near the CBD, and comprises 774 units, of which 55 remain unsold. Time is running out as its ABSD deadline approaches in Q4 2023. With less than 10% of the remaining units unsold, this development is a great candidate for a fire sale.

Located just a seven-minute walk from Outram Park MRT station, One Pearl Bank is ideal for those who work in the CBD, as Raffles Place is just a 23-minute walk away. It is also within walking distance of many other city centre attractions, including City Hall and Gardens by the Bay.

Browse all One Pearl Bank units for sale on PropertyGuru.

2. Grange 1866

This prime location property on Grange Road has 60 units, of which 48 remain unsold. It remains to be seen how the developer plans to offload them before the developer ABSD deadline in around Q4 2023.

The boutique freehold development is located 12 minutes from Orchard Boulevard MRT station and 15 minutes from Great World MRT station. Consisting of one 16-storey residential tower, it is ideal for those who like the privacy of smaller developments.

Browse all Grange 1866 units for sale on PropertyGuru.

3. Cairnhill 16

Of the 39 units at boutique freehold development Cairnhill 16, 24 remain unsold. The developer only has until its developer ABSD deadline in around Q3 2023 to get rid of them. The development is expected to receive its Temporary Occupation Permit (TOP) in 2024, which is when buyers will be able to move in.

Cairnhill 16 is located on Cairnhill Rise about a 17-minute walk from Newton MRT station and is also a stone’s throw from the prestigious Anglo-Chinese School (Junior), as well as Orchard Road amenities like Lucky Plaza and Paragon Shopping Centre.

Browse all Cairnhill 16 units for sale on PropertyGuru.

4. Perfect Ten

This freehold condo on Bukit Timah Road is an excellent fire sale candidate as only 17 of its 230 units remain unsold. The developer is thus likely to be willing to slash prices quite drastically in order to get rid of them by the ABSD deadline in around Q4 2023. The development will obtain its TOP in 2025.

Located just down the road from Balmoral Plaza near choice schools on the Bukit Timah belt and NUS Law School, Perfect Ten is a 12-minute walk from Newton MRT station and a 13-minute walk from Stevens MRT station.

Browse all Perfect Ten units for sale on PropertyGuru.

5. Van Holland

Van Holland is a freehold condo with a good chance of experiencing a fire sale. 15 of its 69 units remain unsold, and the developer is going to want to get rid of them by the ABSD deadline in around Q3 2023.

Located on Holland Road right next door to the lifestyle enclave Holland Village and a three-minute walk from Holland Village MRT, Van Holland also enjoys good connectivity to the Orchard shopping belt via Holland Road, which is just a 10-minute drive away.

Browse all Van Holland units for sale on PropertyGuru.

Should I Buy a Condo in 2023?

If you’re looking to buy a resale condo unit in 2023, keeping an eye out for condo fire sales is one way to go about it. Alternatively, you can look at freshly TOP-ed condos. Additionally, 19,000 condos are expected to TOP by the end of the year, which means the supply of units available for sale will grow too.

In the meantime, you can browse all condo units for sale on PropertyGuru. And if you need home financing advice, feel free to reach out to our PropertyGuru Finance Mortgage Experts! They can answer your FAQs and help you pick the ‘best’ home loans for your needs – for no cost.

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