Critics argue that extending the ABSD remission timeline to seven years for large en bloc projects may not sufficiently address the fundamental challenges faced by developers. While a longer period provides more time to complete projects, it does not mitigate the underlying issues of high development costs, market uncertainties, and the necessity for realistic pricing strategies.
Moreover, there is concern that the extension could encourage prolonged land banking, delaying the actual redevelopment and housing supply boost that the policy aims to achieve. The history of the en bloc market shows that lengthy timelines can sometimes lead to stalled projects, which do not serve the interests of both residents awaiting redevelopment and the broader housing market.
In conclusion, without complementary measures to address pricing, market demand, and development feasibility, simply extending the remission timeline may not be an effective solution and could potentially lead to unintended negative consequences in the en bloc market.