(Bloomberg) -- Property developers in Singapore are getting some assistance to ride out disruptions caused by the coronavirus with the government extending the sale duration period for residential units as well as the timeline for projects to be completed.
The temporary relief measures, announced Wednesday, kick in immediately, according to a joint statement by the national development, finance, law, trade and industry ministries.
A partial lockdown in the city-state, which started last month and was extended until June 1, has brought the property market to a standstill. The extension of the circuit breaker threatens to further push private residential sales and prices down further.
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Home prices slipped 1% in the three months ended March 31, Urban Redevelopment Authority data released last month showed. Developers are likely to delay launching new projects while showrooms and display units remain closed.
“The government will continue to ensure that prices for private residential properties remain broadly consistent with economic fundamentals,” according to Wednesday's statement. “These temporary relief measures do not alter the other existing residential property market cooling measures.”
The measures include:
- Extension of a residential, commercial or industrial project's completion period by six months
- A six-month extension for the commencement and completion of residential development, and the sale of apartments, in relation to the remission of the additional buyer's stamp duty for developers
Read more: Developer Calls for Easing of Curbs Amid Singapore Property Glut
Authorities also added that developers are expected to provide relief and support to their main contractors, especially during the lockdown period when progress of work is disrupted.
Foreign workers, crucial to the construction sector, account for the vast majority of coronavirus cases in Singapore.
“The pandemic, and associated public health measures imposed by governments around the world, have disrupted supply chains and created manpower shortages,” the ministries said Wednesday. “The circuit breaker measures also saw the suspension of work at construction sites, operations at housing developers' sales galleries and home viewings. This has affected construction timelines and the sale of housing units.”
©2020 Bloomberg L.P.
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