News: Government unveils additional temporary relief measures for property developers affected by COVID-19

Oct 12, 2020

The additional relief measures include extending the project completion period for most development projects by another six months. The conditions to qualify remain the same as those provided on the temporary relief measures unveiled on 6 May.

The government on 8 October unveiled additional temporary relief measures for property developers that have been affected by the COVID-19 pandemic, which will take effect immediately. This is a further addition to the temporary relief measures announced on 6 May 2020.

In a release, the Ministry of National Development (MND) said the additional relief measures will extend the Project Completion Period (PCP) for residential, industrial and commercial development projects by another six months. 

Property developers will be given a further six months for the commencement and completion of residential projects in relation to the remission of the Additional Buyer’s Stamp Duty (ABSD).

Meanwhile, foreign developers under the Qualifying Certificate (QC) regime will also be given a six-month PCP extension. 

Developers and contractors have expressed concerns regarding the additional costs as well as the financial penalties that may be incurred due to delays brought about by the COVID-19 pandemic.

Recommended article: Temporary COVID-19 Relief Measures: How Singaporean Couples Can Apply for It

The release also noted that while nearly all construction projects have restarted, the full resumption of on-site operations continues to be a challenge with workers placed under quarantine should they come in close contact with a COVID-19 case. Worksite practices also require redesign to comply with safe-distancing guidelines.

“With these additional support measures, the government expects developers to continue to similarly provide relief and support to their main contractors,” said MND.

“The government will implement additional relief measures to support the stakeholders as necessary, and ensure that no stakeholder bears an undue share of the burden imposed by the COVID-19 pandemic.”

The conditions to qualify for the new extensions remain the same as those provided on the temporary relief measures unveiled on 6 May.

Land for residential projects should have been acquired on or before 1 June, or the site was directly alienated or had their lease renewed by the Singapore Land Authority (SLA) on or before 1 June. The project’s original time for completion should have expired on or after 1 February.

Those applying for extension of the commencement and completion of residential projects in relation to the ABSD regime is also subject to similar conditions.

Recommended article: COVID-19 (Temporary Measures) Act: How Property Buyers Can Apply for ABSD, OTP and S&P Relief

“Under the additional temporary relief measures, the specified commencement and completion timelines will be extended by a further six months, for qualifying residential development projects.”

However, no further extension was provided on the specified timeline to sell all units within a residential development, said MND.

Land for industrial and commercial projects, on the other hand, should have been awarded on or before 1 June, or the site was directly alienated or had their lease renewed by SLA on or before 1 June. The project’s original timeline for completion should have expired on or after 1 February.

“Eligible developers will be notified by the respective agencies. No application is necessary,” said the ministry. 

Meanwhile, the five-year project completion period for residential projects under the QC regime is extended by another six months or a total of one year.

MND noted that there is “no further waiver of extension charges to extend the existing deadline to dispose of all housing units in the residential development project”. 

“Developers which had already applied for and obtained an extension of their existing completion deadlines under the temporary relief measures announced on 6 May 2020 will automatically be granted the further six-month waiver of extension charges,” said MND.

Looking for a property in Singapore? Visit PropertyGuru’s Listings, Project Reviews and Guides.

spacer
agent image
agency logo
Alice Choo
Senior Marketing Director
ERA REALTY NETWORK PTE LTD
alice4934.era@gmail.com
CEA Licence No.:
L3002382K / R027343D
+(65) 8891 2687