The Top 5 Myths About Buying Property in Singapore – Debunked!
The Top 5 Myths About Buying Property in Singapore – Debunked! Here are the top 5 myths about buying property...
Read More
TLDR
In 2025, owner-occupiers of residential properties can benefit from property tax relief based on the Annual Value Band. Retirees facing cash flow issues can opt for a 24-month installment plan with no interest if they meet specific criteria. Single senior Singapore citizens aged 55 and above now have an ABSD refund option to “right-size” their property. Housing developers selling over 90% of units within five years can benefit from a lower ABSD clawback rate. These changes aim to provide financial flexibility and housing options, benefiting retirees and developers alike.
Enhanced Annual Value Band for Owner-Occupier Residential Properties to offer Property Tax Relief in 2025
For example, an OCR 3-bedroom with an AV of $40,000 can enjoy a tax saving of $360 in 2025, while a semi-detached property with an AV of $85,000 can enjoy tax savings of $2,460.
In addition, retirees living in properties with high AV but facing cash flow issues in paying their property taxes can opt for a 24-month instalment plan with no interest, as opposed to the regular 12-month plan. This will make monthly payments more affordable for them. To be eligible, individuals must be aged 65 and above, living in the property they own, and have an assessable income of $34,000 or less.
Analysis :
Retirees living in properties with high AV might be struggling to pay their property taxes on time. They face the burden of making large lump-sum payments within a short period, impacting their cash flow significantly.
Imagine a future where retirees can ease their financial burden by opting for a 24-month installment plan with no interest for paying their property taxes. This offering allows them to spread out their payments over a more extended period, making it much more manageable for them to handle their expenses.
By choosing the 24-month installment plan, retirees aged 65 and above, living in their own property with assessable income of $34,000 or less, can enjoy a more comfortable monthly payment scheme. This financial relief enables them to stay in their homes without the stress of struggling to meet tax obligations promptly.
If you or someone you know meets the eligibility criteria, take the step today to inquire about the 24-month installment plan for property tax payments. Embracing this option can provide the financial flexibility needed to enjoy a more secure and comfortable retirement lifestyle.
Single Seniors Concession on ABSD
Single senior Singapore citizens aged 55 and above can now receive an additional buyer’s stamp duty (ABSD) refund to assist them in “right-sizing” their property. To qualify, these buyers must sell their only residential property within six months of purchasing a replacement, lower-valve private property.
The extension of the ABSD concession to single senior Singaporeans is timely, providing this group with an additional option to right-size their properties and unlock funds from their existing property to support their retirement. The previously deterrent 20% ABSD had restricted this group to considering only HDB resale flats; however, they now have another housing alternative.
Nevertheless, those unable to cover the initial 20% ABSD must still sell their existing property before making a purchase. For example, for a $1.2 million property, the ABSD amounts to $240,000, payable within 14 days of exercising the Option to Purchase the private property.
Analysis :
Single senior Singapore citizens aged 55 and above faced challenges when looking to “right-size” their property due to the 20% Additional Buyer’s Stamp Duty (ABSD) on private properties. This hefty financial requirement limited their options to only considering HDB resale flats, restricting their ability to unlock funds for retirement without selling their existing property first.
Imagine a future where single senior Singaporeans have a new opportunity to right-size their properties and access funds for their retirement without the burden of the 20% ABSD. With the recent extension of the ABSD refund scheme, eligible seniors can now sell their only residential property and purchase a lower-value private property within six months, receiving a refund on the ABSD paid.
This transformation not only provides single senior citizens with more housing alternatives but also empowers them to make informed decisions about their property assets. By bridging the gap between the previous restrictions and the current possibilities, this initiative inspires action among seniors to explore new opportunities for financial security and comfortable living in their retirement years.
Are you a single senior citizen looking to right-size your property and secure your financial future? Take advantage of the ABSD refund scheme today by selling your existing property and exploring new housing options tailored to your needs. Embrace this opportunity to unlock funds for retirement and make the most out of your property assets!
Lower ABSD clawback rate for developers of housing developments that sell >90% within 5 years
Housing developers will now have more flexibility with the ABSD clawback if they sell at least 90% of their units. Developers will pay the full 25% or 35% (depending on when the site is purchased) as long as there are unsold units. ABSD remission clawback is subject to a 5% interest per annum.
Starting from February 16, 2024, the clawback rate will be reduced if they sell at least 90% of units in the development within the five-year timeline. This provides them with more flexibility while ensuring that the supply of new homes is released in a timely manner.
Recent GLS biddings have drawn more muted responses as developers are cautious amid the elevated interest rate environment and slower new home sales rates. By lowering the ABSD clawback based on the proportion of units sold, this will give developers some respite and confidence to bid for upcoming GLS sites, allowing them more time to sell their remaining units. Larger units, due to their higher price quantum, typically take longer to sell.
To put things into perspective, a 1% unsold unit equates to 7 units in a 700- unit housing development. Under this revised ABSD remission clawback, a $1 billion site with 1% unsold units can save up to $100 million, which is quite substantial.
Analysis :
Housing developers faced strict regulations regarding the Additional Buyer’s Stamp Duty (ABSD) clawback. They had to pay the full 25% or 35% ABSD rate if there were unsold units in their developments, with a 5% interest per annum on the remission clawback.
With the new changes starting from February 16, 2024, developers can now benefit from increased flexibility. By selling at least 90% of the units within the five-year timeline, they can avoid the full ABSD rate and potential interest charges, saving up to $100 million collectively.
This transformation offers developers a significant opportunity to optimize their financial outcomes while contributing to the release of new homes into the market. By seizing this opportunity to adapt to the revised ABSD clawback rules, developers can enhance their profitability and positively impact the housing supply landscape.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
The Hidden Hurdles of Purchasing a BTO Flat in Singapore: Unveiling 4 Lesser-Known Challenges During the 5-Year MOP
TLDR When contemplating the purchase or sale of a property under the Minimum Occupancy Period (MOP), it's crucial to consider...
Read More
Top 5 Factors : Why Not All Properties Appreciate Steadily
Real estate has long been considered a lucrative investment option, with the potential for significant returns. However, not all properties...
Read More
Top 5 : Dangerous Ideas Singapore Property Investors Have
Singapore's property market has long been considered a safe and lucrative investment option for both local and foreign investors. The...
Read More
5 Reasons Why You Should Consider Hiring an Agent Instead of DIY-ing It
TLDR Understanding the complexities of the real estate market and transactions can be overwhelming. Enlisting the help of a real...
Read More
The Top 5 Tax Considerations When Investing In Singapore Property
When investing in Singapore property, it is essential to be aware of the various tax implications and considerations. Here are...
Read More
Unlock the Potential of Your Home: 5 Reasons to Start Selling Now
TLDR When considering selling your home, several key indicators can help you determine if it's the right time to make...
Read More
Surprising Prediction: Will Singapore Property Prices Drop in 2024?
TLDR When considering the current real estate market in Singapore, it's crucial to understand the impact of factors such as...
Read More
Sentosa’s Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore’s Premier Island
Sentosa's Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore's Premier Island Here are the top 5 reasons...
Read More
When Should You Consider a Shorter/Longer Home Tenure?
TLDR Understanding the benefits of long-term home loans is crucial for financially conservative individuals in Singapore. Opting for a longer...
Read More
Top 5 : Reasons why Freehold Properties Cost More in Singapore
Freehold properties, a term often heard in the real estate market, are properties that are "free from hold" of any...
Read More
From Garden City to Smart Nation: Singapore’s Top 5 Goals Building a Sustainable and Livable City
Singapore is a small island city-state with a population of over 5 million people. Its urban landscape is constantly evolving,...
Read More
5 Reasons : Why Singapore’s Rental Market Is Still Lucrative For Property Investors
Singapore's property market has always been an attractive investment option due to its stability and potential for high returns. While...
Read More
Strategies for Overcoming ABSD and Acquiring Multiple Properties in 2023 (Revised)
TLDR When it comes to navigating the Additional Buyers Stamp Duty (ABSD) in Singapore, there are legal strategies available to...
Read More
Freehold Properties vs Leasehold Properties: Which is Better?
TLDR When it comes to property investments in Singapore, understanding the differences between leasehold and freehold properties is crucial. This...
Read More
Why Chinese Investors Should Not Be Deterred by ABSD: 5 Reasons
Why Chinese Investors Should Not Be Deterred by ABSD: 5 Reasons Here are the top 5 reasons why Chinese investors...
Read More
Top 5 Japanese Restaurants in Singapore
Singapore, a melting pot of diverse cultures and flavors, offers an incredible array of dining experiences for food lovers. Japanese...
Read More
Top 5 Rooftop Bars in Singapore with Amazing Views
Top 5 Rooftop Bars in Singapore with Amazing Views Singapore, the Lion City, is known for its stunning skyline and...
Read More
Should Foreign Buyers Be Deterred By the 30% ABSD?
TLDR Foreign buyers interested in private residential properties in Singapore is a common sight due to the country's positive reputation...
Read More
Is the Dream of Homeownership Becoming a Steeper Climb?
TLDR The article discusses the evolving trends in the Singaporean real estate market, focusing on the affordability and accessibility of...
Read More
