Time is running out for at least five private residential projects to sell their unsold units before their developer is slapped with hefty fines under the Qualifying Certificate (QC) rules, according to a report from Square Foot Research.
“These developments were completed in 2013 and have less than a year to meet stringent QC requirements,” it said.
Topping the list is CapitaLand’s Interlace with 169 remaining units, representing 16 percent of its 1,040 total. Should the developer fail to move these units by September 2015, it is estimated to pay $41.5 million to extend the deadline by one year.
Another project affected by the QC rule is the 210-unit GoodWood Residence by GuocoLand with 49 unsold units, accounting for 23 percent of its total. If the remaining houses are not unloaded by December 2015, the builder is expected to pay a fine of $104.7 million for the first year.
The other three projects listed are iLiv @ Grange, Urban Resort Condo and Ei8ht Raja
Under the Residential Property Act’s QC rules, all developers with non-Singaporean directors or stockholders need to obtain their private housing projects’ Temporary Occupation Permit (TOP) within 5 years, and sell all units within two years thereafter.
Failure to comply with this timetable would result in developers forfeiting their banker’s guarantee of 10 percent of the land purchase price.
“To extend the deadline, developers will have pay an additional 8 percent, 16 percent and 24 percent of the land purchase price for the first, second and subsequent years respectively. The amount is pro-rated accordingly to the proportion of unsold units,” the report said.