Quick Takes on higher property taxes
PROPERTY tax rates for both owner-occupied and non-owner-occupied residential properties in Singapore will be revised in 2 steps, starting from 2023.
For owner-occupied homes, the property tax rate will increase for the portion of the annual value in excess of S$30,000, to 6 to 32 per cent, from the current 4 to 16 per cent.
And for those that are not owner-occupied, including investment properties, the rate will go up to 12 to 36 per cent, from today's 10 to 20 per cent. High-end properties will see a steeper increase.
Here are some quick takes from analysts and market observers on these higher tax rates:
Cushman & Wakefield head of research, Singapore, Wong Xian Yang:
"While an increase in property tax does increase holding costs for property, it is unlikely to dampen demand as the increase in costs seem manageable. Assuming an investment property with an annual value of S$22,200, the increase in tax would only come up to S$444.
"While the Good Class Bungalow segment may see the largest increase in property tax, it is unlikely to impact demand as high-net-worth individuals would be able to absorb the increase in property tax."