The government has defended its new rule which requires developers to pay a stamp duty of 10 percent if they fail to build and sell all on-site residential units within five years.
In answering a query raised by The Straits Times, the Ministry of Finance (MOF) noted that the five-year limit is imposed to guarantee that developers follow through with the development.
“A five-year condition for completion of development and sale is needed, as otherwise, developers holding on to their units are no different from corporate entities holding investment properties,” said an MOF spokesman.
Under the new rules, developers must develop any residential land parcels bought from 8 December onwards and sell all the units within the timeframe to avoid the new 10 percent additional buyer’s stamp duty. This covers private-sector sites, including collective sales and Government Land Sale (GLS) sites.
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