Urban Redevelopment Authority (URA) Revised Criteria for Issuing Housing Developer’s Sale Licence for private residential properties – effective 1 Apr 2016.
At present, a minimum paid-up capital or deposit of S$1 million is imposed on a housing developer to qualify for the issue of a sale licence. The revised rule will impose a paid up capital ranging from $1 million to $4 million, depending on the size of the housing project.
The sizes of completed projects in a developer's track record will determine how large a project it can now build. Illustration: if the completed housing project cited in its track record has fewer than 10 units, a developer can obtain a sale licence to develop only a new project of fewer than 50 units.
Non-residential projects will not be admitted as a track record for a sale licence, given the differences in developing residential and non-residential projects.
For housing developers applying for a sale licence based on the track record of their companies, at least one of the directors who had completed a licensed project cited in the track record must remain on board as a director of the company.
The new rule will make it harder for aspiring developers with limited track records to build and sell private homes and put smaller players under financing constraint.