Your search results

Budget 2024: What To Expect For The Singapore Residential Market?

Posted by Jayson Ang on February 18, 2024

| 0

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 …

All Blog Posts Buying Tips

When Is The Best Time To Buy A New Launch?

Jayson Ang – January 13, 2023 –

TLDR When it comes to new property launches, timing is crucial. Early buyers often secure the best prices due to...

Mandarin Top 5

Top 5 : Golden Tips to Spot a Good Investment Property

Jayson Ang – March 9, 2025 –

Investing in real estate can be a lucrative venture, but it's essential to know how to spot a good investment...

Mandarin Top 5

Top 5 : Best Themed Cafes in Singapore

Jayson Ang – November 15, 2024 –

Singapore, a vibrant and diverse city, is known for its eclectic mix of cultures, cuisines, and attractions. Among the many...

All Opinion Selling Tips

Is it Better to Sell Your Newly Launched Condo Before or After Completion? Here’s What the Statistics Indicate

Jayson Ang – March 14, 2025 –

TLDR Determining the best time to sell a newly launched condo involves weighing the benefits of selling before or after...

All Opinion

Surprising Prediction: Will Singapore Property Prices Drop in 2024?

Jayson Ang – June 8, 2024 –

TLDR When considering the current real estate market in Singapore, it's crucial to understand the impact of factors such as...

Mandarin Top 5

From Garden City to Smart Nation: Singapore’s Top 5 Goals Building a Sustainable and Livable City

Jayson Ang – February 20, 2024 –

Singapore is a small island city-state with a population of over 5 million people. Its urban landscape is constantly evolving,...

Mandarin Top 5

Top 5 Shopping Malls in Singapore for Luxury Shopping

Jayson Ang – March 5, 2024 –

Singapore, a bustling city-state known for its stunning architecture and diverse culture, is also a paradise for luxury shopping enthusiasts....

All Blog Posts Buying Tips

Avoid The Possibility Of Negative Cash Sales: Find Out How Much Your HDB Has To Appreciate To Steer Clear Of It!

Jayson Ang – January 31, 2023 –

TLDR When selling your property, watch out for negative cash sales that could leave you with no money after CPF...

All Blog Posts Opinion

Should You Be Upgrading To A Condo In 2023?

Jayson Ang – April 24, 2023 –

TLDR The 2022/23 property market is experiencing high prices, making it challenging for individuals to decide whether to upgrade their...

All Buying Tips

3 Steps to Prevent Rental Scams

Jayson Ang – January 23, 2024 –

TLDR: Prevent Rental Scams in Real Estate Scammers are targeting prospective tenants by impersonating Real Estate Salespersons (RES) to deceive...

All Buying Tips

How Much You Need to Earn to Afford a Condo 2023

Jayson Ang – October 30, 2023 –

TLDR When considering investing in a private property in Singapore, it's important to understand your borrowing capacity. Financial experts recommend...

Mandarin Top 5

5 Reasons : Can Your Real Estate Investment Hedge Against Inflation?

Jayson Ang – September 10, 2024 –

Inflation is an economic phenomenon that can have a significant impact on an individual's financial well-being. As the cost of...

Mandarin Top 5

Top 5 : Benefits of Investing in Newer vs. Older Singapore Property Market Condos for International Buyers

Jayson Ang – January 4, 2025 –

Singapore's property market has always been an attractive investment option for international buyers, thanks to its stable economy, strategic location,...