Qualifying Certificate
Qualifying Certificate (QC) is a rule imposed on foreign developers - including Singapore developers listed here but with foreign shareholders.
Under the QC rule, foreign developers of private residential projects will need to pay extension charges pro-rated to the proportion of unsold units, if the projects are not fully sold two years after obtaining the Temporary Occupation Permit (TOP).
Estimated Qualifying Certificate (QC) / Additional Buyer’s Stamp Duty (ABSD) charges due in 2016
Project | Developer | Total Units | Unsold Units | QC / ABSD Dateline | Estimated Fees |
---|---|---|---|---|---|
Nouvel 18 | CDL & Wing Tai | 156 | 156 | Nov | $38.2M |
TwentyOne Anguillia Park | China Sonangol | 54 | 45 | April | $15.2M |
Le Nouvel Ardmore | Wing Tai | 43 | 39 | April | $14.6M |
Ardmore Three | Wheelock Properties | 84 | 80 | Dec | $13.7M |
d’Leedon | CapitaLand / Hotel Properties | 1715 | 190 | Oct | $11.9M |
The Interlace | CapitaLand / Hotel Properties | 1040 | 140 | Sept | $11.8M |
iLiv @ Grange | Heeton Holdings | 30 | 30 | October | $11.7M |
Michaels’ Residences | SCB Terraform | 40 | 29 | Dec | $9.1M |
Goodwood Residence | GuocoLand | 210 | 41 | June | $8.7M |
Robin Residences | Sing Holdings | 134 | 61 | Dec | $6.6M |
Source: Credit Suisse, URA, Straits Times
Extension Fees
Developers paid the Government $24.9 million in extension fees last year for failing to sell all units at their residential projects within the stipulated time frame.
Estimated QC charges for projects if units remained unsold by the year end:
- $38.2 million for Nouvel 18 – Developer: CDL and Wing Tai Holdings
- $15.2 million – TwentyOne Angullia Park- Developer: China Sonangol
- $22 million - d'Leedon and The Interlace – Developer: Hotel Properties and CapitaLand.
The Credit Suisse's report was based on last available data of unsold units as at 31 Dec or earlier; It does not include recent transactions concluded this year.
QC extension charges paid out by developers
Year | QC Charges |
---|---|
2011 | $380,340 |
2012 | $4,950,920 |
2013 | $17,810,860 |
2014 | $29,976,300 |
2015 | $24,906,160 |
Fees collected since the implementation of Qualifying Certificate (QC) extension framework in 2011
Source: Singapore Land Authority; Straits Times
Additional Buyer Stamp Duty (ABSD)
The ABSD rules, introduced in December 2011, require developers to build and sell all new units within five years of a site's contract purchase date or pay a 10 per cent levy - later raised to 15 per cent for sites bought from Jan 12, 2013.
The Credit Suisse report also pointed to Michaels' Residences and Robin Residences as being affected by ABSD remission claw-back this year.
Since it is unlikely that the number of unsold units remain static, ABSD fees will move down as developers continue to move sales.
Developers Hopeful About Selling Out Before ABSD Deadlines
Developers are optimistic about beating the looming ABSD deadlines without having to resort to massive price cuts. However they remain tight lipped on their marketing strategies.