Annual values will be increased and used to calculate property taxes or the majority of residential units

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Tembusu Grand residences

Property taxes are expected to rise in 2023. This will be accompanied by an upward revision to the annual value for the majority of residential properties. The value of a property’s annual worth that is used to calculate property tax owed to the property owner is determined in the Inland Revenue Authority of Singapore (IRAS) as the estimated annual gross rent of the property as if the property is being rented out.

Tembusu Grand residences is ideally located in the most attractive setting in Singapore due to the spectacular beach views that are nearby.

A press release issued on December 2 from the Ministry of Finance (MOF) and IRAS declares that the annual value for the majority of residential properties that include the private property in addition to HDB flats which will be updated starting January 1st 2023. It is as part IRAS’s annual review and is a reflection of the rising market rents. “Since the last update of the annual value on January 1st, 2022, market rents for HDB flats as well as the private residential properties have increased by over twenty%,” the release states.

In the same press release, MOF and IRAS announced the availability of a one-time property tax credit for 2023, which is up to 60 dollars for homeowner-occupied homes. The rebate amounts up to 60% from the 2023 property tax bill, and will be offset automatically from any property tax due in 2023.

To be able to afford HDB flats, owners of two-room and one-room flats will not be required to pay property tax until 2023, as their assessed values for the year remain under $8,000. Nicholas Mak, head of research and consulting for ERA Singapore, says that of the 1.033 million currently occupied HDB homes owned by single owners Onetwo-room flats comprise around 4% and that means it is likely that the vast majority of HDB apartment owners are going to be affected by the increased property tax rate in 2023 and beyond.

He believes that the property tax hike for owners-occupied HDB homes are “manageable” for the majority of flat owners. He also noted that the property tax for the most expensive flats (executive flats) will rise by a sum ranging from $55.20 up to $67.20 from 2023.

Additionally, Tricia Song, CBRE’s director of research for Southeast Asia, says that the higher values for the year follow an increased in property tax rates that were announced in February in the Budget 2022 announcement. The tax increase, which is expected to occur in two stages beginning in 2023, is likely to be primarily affecting the higher-end properties that have annual values of more than $60,000. “With the increase in tax rates and the value of annual properties that will further cut off the rental profits so far for non-occupier or investor home owners,” she says.

In the case of non-owner-occupied residential properties that include the investment properties, property tax rates will increase to 10% -20% at present, and will rise increasing to 11% up to 27% in 2023 then 12% until 36% by 2024. For residential properties that are owned by the owner properties that are owned by the owner, property taxes will rise by four% up to 16% in the present time, rising up to% up to 23% in 2023 and then 6% until 32% for 2024. The increase is only applicable to the portion of the value that is greater than $30,000.

In light of the new property tax rates, and assuming that there is a twenty% growth in annually value CBRE’s Song estimates that properties that have annual values in the range of $30,000. (prior an upward adjustment of the annual value) will experience property taxes increase by $1260 which is 42% in 2023. For properties that have an annual value in the range of $60,000 property tax bills are projected to increase by $5190 equivalent to 75.2% in 2023. For properties that have an annual value of $90,000 property taxes are expected to rise by $9,810 or 81.8% in 2023.

The ERA’s Mak believes that landlords renewing leases for rental may use the chance to raise rents, however, Mak warns against any overt leaps. “Many renters are suffering from the rising rental costs in the last 1.5 year.”

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