New Launches Near The 5-Year ABSD Deadline- Will there be Developer Discounts in 2022?

As condos come close to their 5 year ABSD time limit, buyers and investors should start to pay more attention. There are no guarantees that the developers will start having fire sales, but there’s a chance that the developer will decide to give some discounts to the units left unsold nearer the 5-year ABSD deadline.

What is the ABSD deadline?

When property developers buy land to build a new project, they have to pay ABSD of 40% (revised from 30%) of the land price upfront, with 35% remittable when they complete and sell every unit in the development within 5 years of the land purchase.

This can sometimes result in fire sales as developers rush to sell out the last few units in a development. Some developers might also opt to sell their last few units in bulk to a private investor or company at a cheaper price.

Which projects are nearing their 5-year ABSD deadline in 2022?

There was a strong demand of private housing in 2021, and as a result, many of the projects are close to 100% sold. The list of new launches that still have units left as of Mar 2022 is pretty short:

DevelopmentPercentage SoldNumber of UnitsRemaining unitsExpected TOP
Stirling Residences99.99% 1,259 Last 2 1BR unitsOct-22
Uptown@Farrer 99%116Last 5BR Penthouse unitJan-22
8 Hullet98%44Last 2BR unitMar-22
The Woodleigh Residences 94%6672BR/3BR/4BRAug-24
Parkwood Collection78%50Semi-detached housesMar-23
One Draycott14%642BR and 2BR Penthouse Sep-23
New Launch Projects nearing 5-year ABSD deadline in 2022

While there are already ongoing discounts and you could possibly find some good buys in the developments above, let’s explore our other new launch project options.

Since the land sales of the above projects was around 2017, the next best thing to look at would be the land sales in 2018.

Potential Fire Sales Projects in 2022

Notable New Launches Facing the 5-Year ABSD Deadline in 2023

DevelopmentPercentage SoldNumber of UnitsExpected TOP
Riviere47%455Q4 2022
Midwood94%564Q1 2023
Haus on Handy31% 188Q4 2023
195399%72Q4 2023
Normanton Park92%1862Q4 2023
Avenue South Residences78%1074Q4 2023
New Launch Projects nearing 5-year ABSD deadline in 2023

In general, it will always be cheaper to buy a new launch from the developer earlier(when the TOP date is far far away…) rather than nearing the TOP date, as there is usually more demand for immediate housing rather than waiting the 1-3 years for the project to be built.

However, due to the recent apparent increases in GLS and land prices, the future new launch projects from 2022 onwards will most definitely be priced higher than the previously launched projects. So, dig deep my friends…

If you are looking out for a good deal, feel free to reach out to us for some free property advice.

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