Time is running out for developers as ABSD deadlines loom

Massive price cuts are on the horizon, analysts say.

Developers are scratching and clawing to sell their residential units as the five-year selling period that started on Dec 2011 is drawing towards a close.

According to a report by Maybank Kim Eng, if developers do not complete and sell every single unit in their projects within the period, then they will need to pay the exempted stamp duty.

“One of the first projects facing the ABSD deadline is The Trilinq by IOI Properties (Not Rated). 48% of this project remains unsold with just five months to its deadline in Jan 2017,” the report noted.

Meanwhile, the report added other projects facing deadlines in 2017, including Mon Jervois (50% unsold, Feb 17) and Pollen & Bleu (88% unsold, Jun 17) by UIC, The Venue Residences (45% unsold, Sep 17) by CityDev (HOLD, TP SGD9.17) and The Crest (70% unsold, Sep 17) by a Wing Tai (HOLD, TP SGD1.71) JV.

While there aren’t any significant price cuts yet, Maybank Kim Eng said there could be more pressure to do so as deadlines near.

“This could lead to downwards pressure on prices if these developers choose to cut prices,” the report added.