In 2024, property tax revenues will rise by S$600M more than the S$380M government had projected.
In FY2022, which ended in March 2023, collected S$5.1bn as property taxes, an increase by 9.1 percent from FY2021.
Pritam Pritam Singh (leader of the Opposition, Workers’ Party) asked what the estimate was for property tax collections by 2024 given that the tax rates have increased for most homeowners.
Singapore’s revenue from residential property taxes is projected to grow this year by S$600,000,000, with two-thirds coming from non-owners-occupied homes.
This is higher than the amount we anticipated in Budget 2022. When fully implemented the property tax increases will generate property tax revenue of approximately S$380 million each year.
The increase in property tax revenue was a result of higher annual values. This led to a rise in rents, both for private and social housing. Based on data from the Urban Redevelopment Authority’s latest report, the rents for residential properties in private hands grew 8.7% on an annual basis during the 4th quarter of 2023.
The government will soften this blow by providing a once-off rebate, up to 100 percent, for owner occupied Housing and Development Board apartment and a 15 percent rebate, limited to S$1,000 for private homeowners. You may not feel the full impact of this property tax relief if you are living in a big house or if your AV is extremely high.
Property taxes calculated based AVs which are revised annually according to the estimated annual rent for the property if rented. This is also dependent on the location and age of the house, as well the general market trends.
Chee said, “As announced in Budget 2022, property taxes for non owner-occupied and highly valued owner-occupied residences will also increase, as a type of wealth tax.” The second and third steps of the increase came into effect in January, with tax rates rising to between 12 per cent and 36 percent.
When asked whether it would be possible to have a differential tax rate for retirees who do not earn any income, government officials will review the situation and determine how they can assist both seniors as well other families facing an increase in property tax.
