Tax on empty homes: Can it ease rental supply crunch?

A TAX on vacant residential properties in Singapore may incentivise landlords to lease out their empty homes, increasing the supply in the rental market, an Institute of Real Estate and Urban Studies (Ireus) article said. 

This may potentially encourage landlords to find a tenant to avoid being taxed while investors may abstain from acquiring these properties altogether. 

“Much like pushing idle money into circulation in the economy, an empty homes tax may likewise push ‘idle homes’ into circulation in the rental market, and in theory, it holds the potential to improve housing availability for renters in Singapore,” said Ireus director Qian Wenlan.