Chart of the Day: Units unsold as developers fail to comply with RPA

Residential Property Act requirements are less punitive than generally believed, says Maybank Kim Eng.

Maybank Kim Eng noted:

The penalty for non-compliance is either a) the forfeiture of the bankers’ guarantee amounting to 10% of the land cost, or b) the payment of an extension premium, which is pegged at 8%, 16% and 24% of the land cost for each subsequent year beyond the two-year period which the developer fails to sell all its units, pro-rated based on the proportion of unsold units. As land cost accounts for just ~50% of total costs for most of these projects, our analysis shows that the impact on developers’ margins are actually quite manageable.

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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
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Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley