Higher property taxes further dent investment case of Singapore private homes
The draw of growing wealth through owning homes is being impacted by higher transaction and holding costs of such properties
IN December 2021, potential home buyers were hit by property cooling measures that included higher Additional Buyer's Stamp Duty (ABSD) rates for all home buyers except Singapore citizens and permanent residents (PRs) buying their first home.
In the Singapore Budget unveiled on Feb 18, 2022, there was bad news for some homeowners - property taxes rates will rise starting from 2023, with high-end homes seeing a steeper increase.
For non-owner-occupied homes, the property tax rate will rise from 10-20 per cent presently, to 11-27 per cent from Jan 1, 2023 and 12-36 per cent from Jan 1, 2024. The annual property tax for a home with an annual value (AV) of S$30,000 will rise from S$3,000 currently to S$3,600 in 2024 while that for a home with an AV of S$150,000 will go up from S$24,000 currently to S$43,200 in 2024.
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