Overview
- The Ministry of Finance and Ministry of National Development announced the revisions on July 28 and said they take effect for residential land acquired on or after July 29, 2026.
- Under the new rules, Large Sites that yield 700–1,399 units get up to six years to complete and sell units and Mega Sites of 1,400 units or more get up to seven years.
- Mega projects must sell at least 50% of units within six years or face a full clawback with interest of the 35% remittable portion of the ABSD, and they must still sell all units by seven years or face similar penalties.
- To qualify for the extended timelines projects must increase unit yield to at least 1.5 times the existing development and projects meeting extra criteria such as technical complexity or approval under the Strategic Development Incentive can receive a further six-month extension, giving completion windows of 6.5 years for Large Sites and 7.5 years for Mega Sites and a commencement window of up to three years.
- The ABSD regime still charges developers 40% upfront (5% non-remittable and 35% remittable subject to clawback) and officials say the revisions aim to unlock larger redevelopments and more homes, though analysts note owners’ pricing and market absorption will determine whether more mega projects proceed.