Assistance Measures For The Property Market In The Economic Slowdown

1 Mr Tharman Shanmugaratnam, Minister for Finance, today announced in the Budget Speech measures to help various sectors cope with the current economic slowdown and to mitigate the impact of the downturn on businesses. Several of these measures affect the property market and will provide property developers with more flexibility to make adjustments in response to the current market downturn.

2 The measures that affect the property market include:

a Allowing one-year extension of the project completion period (PCP) for existing Government residential sale sites and private residential projects undertaken by foreign housing developers with Qualifying Certificates (QC);

b Allowing re-assignment of Government sale sites and private residential land owned by QC holders;

c Giving QC holders up to four years [from date of issue of Temporary Occupation Permit (TOP)] to dispose of all private residential units in the development, and

d Allowing QC holders to rent out unsold private residential units for a maximum of four years (from date of issue of TOP or the date of application, whichever is later).

e Allowing up to 2 years of property tax deferral for land approved for development.

Further details of these measures are in Annex A (38 KB)

2 These measures are intended to assist property developers during the economic slowdown, by giving them more flexibility to stage the construction and sale of their projects in accordance with market conditions, and easing their cash flow situation.

3 The first four measures will be in effect for 1 year from 22 January 2009 to 21 January 2010. Property tax deferral for land under development will be for 2 years, from 22 January 2009 to 21 January 2011.

Issued by the Ministry of National Development, Ministry of Finance, and Ministry of Law