New deterrent measures against housing developers to better protect interests of home buyers

29 June 2026

On 22 May 2026, the Building and Construction Authority (“BCA”) issued a circular announcing the implementation of the following measures from 22 May 2026 to enhance the protection of home buyers’ interests by deterring severe errant developer behaviour:

• Land Sales Disqualification Framework: Housing developers who deliver housing projects with severe regulatory non-compliance affecting safety or demonstrate recalcitrant behaviour by having consecutive projects with major defects, may be disqualified from participating in land sales for sites with residential components for up to five years (“Land Sales Disqualification Period”).

• Sales Suspension Framework: Housing developers who deliver housing projects with severe regulatory non-compliances affecting safety or housing project(s) with major defects (which may include major defects and recalcitrant behaviour within the scope of paragraph (a) above) may be placed on a sales suspension list for up to five years (“General Sales Suspension Period”). A no-sale licence condition will be imposed on such housing developers’ future unlaunched projects, for a period of up to five years (“Project-Specific Sales Suspension Period”).

The Land Sales Disqualification and Sales Suspension Frameworks may apply to an errant developer and relevant parties, including its directors and substantial shareholders.

In assessing whether a developer and the relevant parties should be subject to the Land Sales Disqualification and/or Sales Suspension Frameworks, as well as in determining the duration of the relevant Land Sales Disqualification and/or Sales Suspension Periods, all relevant factors based on the specific circumstances of each case, including the following, will be taken into consideration:

• The number and severity of regulatory non-compliances or major defects in a housing project that are attributable to the developer relative to the scale of the project;

• The time taken for the developer to rectify the regulatory non-compliances and/or major defects;

• The extent of impact of the regulatory non-compliances and/or major defects on home buyers, including whether safety and/or liveability is affected;

• Any relevant aggravating or extenuating circumstances faced by the developer; and

• In respect of the relevant parties, the extent of control by the relevant parties over the errant developer.

A potential errant developer, its directors, substantial shareholders and their respective directors will be given early warnings and opportunities to make representations or rectifications, prior to the determination and notification of any penalties. The Land Sales Disqualification Period and General Sales Suspension Period will commence on the date stated in the notification issued to the errant parties. The Project-Specific Sales Suspension Period will commence on the date of issue of the housing developer’s licence. Where an errant developer and relevant parties are subject to Land Sales Disqualification or Sales Suspension Periods for one or more housing projects, the periods may apply concurrently or consecutively.

Reference materials

The circular is available on the BCA website www1.bca.gov.sg.