In 2024, property taxes for non-owners-occupied homes, which increased from 10% to 20 % to 11 % to 27 % in 2023 will be raised to 12 – 36 – 12%. In 2024, amounts over S$60,000 in AV are subject to taxation at 36%.

Take for example a non owner-occupied condo unit with a value added tax (AV) of S$52,000 per year in 2023. The tax bill in this year amounts to S$7.170.00 If the AV reaches S$60,000 in 2020, the tax next year would be S$10 800 – a 51% increase.

Rental property owners may have to become accustomed to the thought that their property taxes might continue to rise.

Singapore real estate can come at a steep price. Singaporeans will live longer so they need to use other means to ensure retirement security.

The government considers property tax to be a primary source of income tax. Property tax works because it is very difficult to avoid. Taxing the wealth of those with more means is essential in combating inequality.

Residential property landlords continue to be hit with higher taxes at an inopportune moment.

The property taxes of owners will generally rise in 2024 as a result of higher AVs for private homes and higher tax rates. The property tax rebate is an exception.

Even so, owners of more expensive private residences should remember that the tax rebate will only be one time and their tax burden is likely to increase. Property taxes can be a big burden for owner-occupiers that are paying off expensive home loans or retired people with low incomes.

Singapore is a great place to invest in homes because it makes a continuous effort to make the country a better destination for people who want to live, play and work.

The AV is the estimated gross rental income of a property, excluding the cost of furniture, furnishing and maintenance. The AV for a property is determined by comparing estimated market rental prices of similar properties.

Singaporeans may think it’s a good idea to own a house for their personal use while renting out an additional property for rental income.

Newport Residences condo

Nevertheless, becoming a property owner in residential properties is not without its challenges. Private home prices have increased sharply. Also, home loans are more expensive because of high interest rates.

The AVs of many houses will increase in 2024 as a result of a general rent rise since 2022. In the third-quarter, the Urban Redevelopment Authority’s index of rental prices for private residential property was up 19,3 percent over a year before and 44 percent in comparison to the fourth-quarter of 2021.

Singaporeans buying multiple homes will now have to pay an additional Buyer’s Stamp duty (ABSD), ranging between 20 and 30 percent.

The rise in private non-landed home rentals in Q3 was only 0.2 percent, compared with the 2.3percent increase in the previous period.

Singapore’s long-term plan is unmatched by any other country. Think about the newly announced land reclamation projects to create 800 ha on the eastern coast, strengthening the country’s resilience , and protecting the city state from rising sea-levels.

URA stated that it expects about 20,400 private homes to be built in 2023 (including executive condominiums). This would mark the highest level of completion in private housing supply since 2017. Around 39,700 new private homes (including condominiums and executive apartments) are expected between 2023 to 2025.

Housing completions will increase the choice of tenants, and their bargaining strength. Residential property landlords may find it difficult to pass along higher property taxes.

A rise in interest rates can also increase the costs of financing for some landlords. Landlords may reduce rents if they are worried about leaving an apartment vacant for long periods of time.

If you own multiple properties that were purchased when ABSD wasn’t around or the ABSD rates were lower, then you are in luck. Singapore citizens are allowed to own two homes in separate names, without paying ABSD.

For private residential landlords, the picture may be getting darker. The tax burden on non-owner-occupied houses, especially those with higher values, is set to increase dramatically in 2024.

Multiplying the annual value, or AV, of the property by the applicable tax rate will give you the annual tax.