Will Developers Really Discount to Avoid ABSD? What Singapore's 2026 Rules Change

I am Winnie Lim, a licensed CEA agent, and this is one of the most common lines I hear at a showflat. Let me walk through what the developer's ABSD actually is, what changed in 2025, and how I would think about waiting versus buying at launch.

The belief I hear from almost every buyer

It usually sounds like this. "Never mind, let me wait. The developer will have to cut the price. They will hit the developer's ABSD and sell at a discount." The honest answer is that yes, developers do offer discounts on unsold stock. But whether you actually benefit depends on how, and on which unit is still available by then.

Before anyone talks price, the real question is simpler. Is the unit on offer the one you actually want, or is it the leftover that nobody picked? A discount on a stack you do not love is not a win. It is a compromise with a price tag.

What the developer's ABSD really is

Licensed housing developers who buy a residential site pay Additional Buyer's Stamp Duty in two parts. There is 5 percent that is non-remittable, so it is paid no matter what. There is a further 35 percent that is remittable, meaning it is refunded, but only if the developer completes the project and sells every unit within five years of acquiring the site. Miss that window and the 35 percent is clawed back.

That five-year clock is where the old "they must discount" logic came from. As the deadline neared, a developer sitting on unsold units had a real incentive to move them, even at a lower price, to protect the remission. Buyers learned to wait for that pressure.

What changed in 2025, and why it matters

On 6 March 2025 the government revised the ABSD regime for developers. As reported by The Edge Singapore and covered by MND, large and complex projects were given an extension of 6 to 12 months on the remission timeline. The extension applies to en bloc redevelopments that yield at least 700 units and at least 1.5 times the homes of the previous development, and to technically complex projects, such as those built around major public transport infrastructure. An earlier change in February 2024 also introduced a lower clawback rate for developments that had sold at least 90 percent of units.

The effect is straightforward. Developers of exactly the kind of mega and transport-integrated projects that are hardest to sell now have more runway. More time to sell means less pressure to panic-discount near a deadline. The single biggest reason buyers used to wait has been softened.

Why I actually agree with this change

Having been in real estate for many years, I will say plainly that mega developments are never easy to sell, and I second the government here. These projects are how Singapore rejuvenates whole areas, and without some breathing room, developers may not be motivated to take them on. The Bayshore precinct around the future Bedok South MRT is a good example of the scale involved, which I covered in my 2026 land bids comparison and on the Bayshore Drive GLS project page.

There is a fairness mechanism too. MND has signalled it does not want developers using the extra time purely as a delaying tactic, so the relief is balanced against conditions on selling progress. Developers get flexibility only if they keep moving units.

The real trade-off with a mega development

Bigger is not automatically better or worse. It is a set of trade-offs worth naming before you decide to wait.

On the caution side, a large project means more neighbours selling around the same time when you eventually exit, which can cap your pricing power, and some buyers simply feel they get less privacy. That resale competition is one reason mega launches take longer to clear.

On the upside, scale usually brings fuller facilities and, because the cost is spread across many units, often lower maintenance fees. More transactions also means a more active resale market, and with many different sellers pricing differently over time, the reference prices can drift upward rather than stagnate. Depth cuts both ways, but it is not only a negative.

So should you wait, or buy at launch?

Here is how I frame it for my own buyers. If you wait, you are betting that a unit you genuinely want will still be available later, and at a meaningful discount, after the developer's timeline pressure has already been eased by the 2025 rules. That is a weaker bet than it was two years ago. At launch you get the widest choice of stacks, floors and facings, which is where most of the long-term value actually sits. The discount you chase later is often on the unit nobody else wanted.

None of this means you overpay. It means you negotiate on the right unit rather than settling for the wrong one just because it is marked down.

Common questions about the developer's ABSD

Do developers really discount to avoid ABSD?

They can and sometimes do, but the pressure that drove big end-of-timeline discounts has eased. Since 6 March 2025, large en bloc and complex projects get a 6 to 12 month extension on the ABSD remission window, so developers are under less deadline stress to cut prices.

How much ABSD do developers pay?

Licensed developers pay 5 percent non-remittable ABSD upfront, plus a further 35 percent that is remitted only if they build and sell all units within five years of buying the site. If they miss the deadline, the 35 percent is clawed back.

Which projects get the extended timeline?

En bloc redevelopments yielding at least 700 units and at least 1.5 times the homes of the previous development, and technically complex projects such as those integrated with major public transport, qualify for the 6 to 12 month extension announced in March 2025.

Is it better to wait for a discount or buy at launch?

Buying at launch gives you the full choice of stacks and facings, which is where most long-term value sits. Waiting usually means choosing from leftover units, and with the 2025 rules easing developer pressure, the odds of a deep discount on a unit you actually want have fallen.

Planning your next purchase?

If you want to know where the real developer deals are, message me. For the full cash picture before you commit, see how much you really need to buy a condo, and if you are upgrading from an HDB flat, read how HDB upgraders avoid ABSD. WhatsApp me at +65 88772688.