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5 things you need to know about the Qualifying Certificate (QC) and how we can benefit from it.

Posted by Property Launch Invest on Saturday, 30 August 2014 in Property News

1. Who needs to obtain QC?

Under the Residential Property Act, Foreign Housing Developers with one or more non-Singaporean shareholder and director are affected.
All public listed ones are included too.

2. Conditions of the QC

Such developers are given 5 (five) years to complete construction and obtain TOP.
Finish selling all units developed within 2 (two) years of the TOP date.
Developer is not allowed to lease out any unsold units.
Developer will need to pay extension charges for extension of TOP or for extra time to sell the remaining unsold units.

3. GLS sites are not affected

Developers who bought land from the government land sales (GLS) programme (99years) need not worry.

Many of them have huge financial reserves and hence holding power. They are able to hold on to their units, ride out the troughs of the market They could even lease out their units on TOP in the meantime. E.g. Far East and Keppel Group(Reflections)

The Crest @Prince Charles

4. Solutions around QC extension charges

Privatise and delist. This is what luxury developer SC Global Developments did.
Bulk sale of unsold units. Listed Hiap Hoe Group is doing so for its "Treasure on Balmoral"

5. How can we benefit from this QC rules?

Keep a close look out developments affected by QC. Make an entry at a price point below recent high, e.g. 15-20%. Aim for capital appreciation in the uptrend and long run.

Property Launch Invest

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