35 New Launch Condos Near Their ABSD Deadline In 2023

With the number of new launches over the past few years (and despite the notion that the property market is hot), there are still a fair few that have units left to move before their ABSD deadline.

Buyers who are hoping for a discount will sometimes track projects nearing the deadline, in the belief that developers will slash prices for the last remaining units. This sometimes happens, though developers often prefer to sell the remaining units collectively to a single entity (as opposed to disparate sales to individual buyers). 

What is the ABSD deadline, and why would there be discounts?

Developers are required to pay 40 per cent ABSD on the land price when they purchase a plot for development. Assuming the developer can complete and sell every unit within five years, they can then claim ABSD remission (although five per cent is non-remissible, so they have to pay at least 5 per cent ABSD). 

This is to ensure developers can’t create artificial scarcity, by hoarding and withholding land. 

But because the cost of the ABSD is so high, a developer definitely would not want to hold on to a handful of units beyond the five-year deadline. This can result in bigger discounts to clear units (or higher commissions for agents), as the developer rushes to clear out the last few units. 

Do note that the five-year time limit applies regardless of size; whether there are 100 or 1,000 units, the developer has to completely sell all of them. 

So for those on the lookout, here’s a list of 35 new launch condos that are near their ABSD deadline in 2023:

Editor’s Note 08 Mar 2023: The ABSD deadline for Leedon Green and The Landmark was previously indicated to be in 2023. This is incorrect due to a delay in finalising the sale. You may find out more about the delay for Leedon Green here, and the one for The Landmark here.

If you are wondering about how this is calculated, the ABSD deadline is counted by adding 5 years (365 x 5) plus another 6 months extension (182 days) from the date of the land’s purchase (either through the successful purchase of a GLS site or the en bloc). As such, the deadline should be seen as a close approximate rather than an exact day.

Here are some notable highlights from this list:

1. Riviere has staged a remarkable turnaround

If you look at the time we did this list in March 2022, Riviere was stuck at 46.81% sold of its 455 units. It has recently just received its TOP and as of yesterday has just 16 units left for sale (mostly the higher floor units left). From what we’ve heard on the ground, it seems that the development has been well-received and potential buyers have expressed that the final product looks better in person. Like what we mentioned in our review of Riviere, perhaps it would have been similar to the case of Leedon Residence (another SCDA project), where sometimes it just needs the actual product to convince the higher-end buyers.

So given that it still has a few months left and buyers can actually see the actual development for themselves, there shouldn’t be an issue clearing off these last few units.

Naturally, many comparisons have been made with Irwell Hill Residences, another new launch that was launched later but in a very similar location. It’s interesting to see how even though Riviere is in an arguably more premium location (by the river, not referring to the district), how much difference the time of launch, the momentum of sales, and the unit mix can make.

2. Despite being completed, RoyalGreen still hasn’t fully sold its units

On the topic of TOP developments being easier to sell, that doesn’t seem to have quite applied to RoyalGreen. There are just 8 units left though, which are all 2-bedroom units that range from 689 square feet to a larger 2-bedroom + study unit at 818 square feet.

For casual onlookers, it might seem like a strange one. It’s freehold, in a premium location (Bukit Timah), very close to an MRT station, near food and amenities, and in close proximity to good schools. You have all the facilities that you’d want too, plus it has a rooftop tennis court for just 285 units.

Look deeper though, and you might point to Fourth Avenue Residences cannibalising sales for RoyalGreen. Given they are both built by the same developer, there could have been better product differentiation other than one being a freehold, and the other being a 99-year leasehold.

Also, there may be a case to be made for the wrong unit mix at RoyalGreen. The few 4-bedroom units were snapped up rather quickly, and given the area of landed homes and generally more well-heeled buyers, there would probably have been a greater demand for more spacious and bigger units at RoyalGreen.

As it is, even when completed there are still 2-bedroom units left for sale (which Fourth Avenue Residences could have filled the void for).

3. Struggles of new launches on the fringes of the CBD

One Pearl Bank and The Landmark are easily notable on this list due to their remaining units. They are both on opposite ends of Pearl Hill’s City Park, with One Pearl Bank in arguably the more accessible location.

It’s hard to really put a finger to the issue, given that we are now clear of the pandemic, and foreigners have returned to our shores. Could it be the location? It seems unlikely, not when Canninghill Piers is located in quite close proximity and has done very well in terms of sales for itself (even the 8,956 square feet super penthouse has been sold).

For more on the situation as it unfolds, follow us on Stacked. We’ll also provide you with in-depth reviews on new and resale properties alike.  

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