What Does the DBS Mean for You?

Commencing July 1 2026, the Developer Bond Scheme (DBS) requires developers of apartment buildings over 4 storeys to lodge a financial bond before an occupancy permit is issued. The result is greater protection for apartment owners, with dedicated funds available to resolve defects soon after buildings become occupied.

Stronger Safety Net for Owners

At the core of the DBS is a mandatory bond equal to 2% of a project’s total construction cost, held by the Building and Plumbing Commission.

This bond is designed to fund the rectification of building defects that emerge after residents move in. Crucially, the scheme covers defects in common property as well as private lots, closing a long-standing gap in consumer protection for apartment owners.

Clear Timelines and Inspections

The scheme introduces a structured, two-stage inspection process that brings accountability forward. An independent inspection takes place around 15–18 months after occupancy, followed by a second inspection at 21–24 months if defects have not been addressed.

Where outstanding defects remain, Owners Corporations can claim against the bond, allowing rectification works to proceed without protracted disputes or funding shortfalls.

Confidence for Owners and Investors

For owners, the Developer Bond Scheme provides greater peace of mind in the critical early years of apartment ownership. For investors, higher accountability supports asset value and long-term building performance.

This reform improves outcomes across the apartment sector, providing stakeholders understand their rights and act early.