What happens if a project cannot be completed within 5 years under the qualifying certificate

If a property development project cannot be completed within the 5-year time frame stipulated under a Qualifying Certificate (QC) in Singapore, the developer may face several consequences and have a few options to mitigate these:

Extension of Project Completion Period (PCP)

Developers can apply for an extension of the Project Completion Period. However, this typically involves paying extension charges, although there have been temporary relief measures during exceptional circumstances like the COVID-19 pandemic, where extension charges could be waived for a limited period, such as a six-month extension without charges.

Compliance with QC Conditions

Under the QC regime, developers must complete the construction of all housing units within five years from the date of issue of the QC or the collective sale order. If this deadline is not met, the developer may be subject to penalties or other regulatory actions.

Disposal of Units

In addition to completing the project, developers must also dispose of all housing units within two years from the issue of the Temporary Occupation Permit or Certificate of Statutory Completion. Failure to do so can result in further penalties or regulatory actions.

Special Considerations

In cases where the redevelopment was deferred to alleviate housing supply issues, such as renting out the property, the Land Dealings (Approval) Unit (LDAU) may grant a one-time extension of the PCP commensurate with the period of tenancy, without charge, provided certain conditions are met.

In summary, failing to complete a project within the 5-year timeframe under a QC can result in financial penalties and regulatory issues, but developers can seek extensions under specific conditions.