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 Buying Tips

Multiple Property Ownership in Singapore: A Different Landscape in 2025

Jayson Ang – July 22, 2025 –

TLDR Owning multiple properties in Singapore in 2025 is tougher due to higher Additional Buyer’s Stamp Duty (ABSD), stricter Loan-to-Value...

Mandarin Top 5

Top 5 Japanese Restaurants in Singapore

Jayson Ang – September 14, 2024 –

Singapore, a melting pot of diverse cultures and flavors, offers an incredible array of dining experiences for food lovers. Japanese...

Mandarin Top 5

The Top 5 Myths About Buying Property in Singapore – Debunked!

Jayson Ang – June 4, 2023 –

The Top 5 Myths About Buying Property in Singapore – Debunked! Here are the top 5 myths about buying property...

Buying Tips Mandarin Top 5

5 Things to do When You Go For A Property Viewing In Singapore Part 2

Jayson Ang – June 8, 2023 –

5 Things to do When You Go For A Property Viewing In Singapore Part 2 Here are 5 more things...

Mandarin Top 5

Top 5 Things to Do in Singapore on a Rainy Day

Jayson Ang – March 24, 2024 –

Singapore, the beautiful island city-state, is known for its sunny weather and stunning attractions. However, even in this tropical paradise,...

All Buying Tips

The Unsung Importance of Property Finishing: More Than Just Aesthetics

Jayson Ang – December 30, 2025 –

TLDR Many homebuyers overlook the importance of high-quality finishes in properties, assuming they will renovate later or that tenants won’t...

Buying Tips Mandarin Top 5

Don’t Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore’s Property Market

Jayson Ang – July 14, 2023 –

Don't Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore's Property Market When it comes to...

All Buying Tips Opinion

Fresh Take: Old vs New Condos in District 15 — Which Gives Better Value in 2026?

Jayson Ang – April 6, 2026 –

TLDR District 15 condos show a nuanced split between old and new developments. Freehold projects have driven much of the...

All Buying Tips

Apply Your HDB HFE Letter in 5 Easy Steps: A Simplified Guide for 2023

Jayson Ang – December 18, 2023 –

TLDR The HDB Flat Eligibility (HFE) letter has experienced delays since its introduction alongside the HDB Flat Portal in May...

Mandarin Top 5

Top 5 Best Secret Gardens in Singapore

Jayson Ang – October 25, 2024 –

Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to a plethora of hidden...

All Buying Tips

A Guide to Purchasing a New Launch Condo in Singapore in 2023

Jayson Ang – October 26, 2023 –

TLDR When buying a new launch condo in Singapore, start by planning your finances to determine loan and property limits....

Mandarin Top 5

Top 5 Best Hidden Boutique Hotels in Singapore

Jayson Ang – October 11, 2024 –

Singapore, a vibrant city-state known for its iconic landmarks and diverse culture, offers a plethora of accommodation options for travelers....

All Opinion

URA’s Draft Master Plan 2025: A Blueprint for 80,000 New Homes Across 10+ Estates

Jayson Ang – April 23, 2026 –

TLDR The URA Draft Master Plan 2025 outlines the creation of 80,000 new homes across more than 10 estates over...

Mandarin Top 5

Top 5 : Advantages of Owning a Luxury Condominium in Singapore for Long-Term Investment

Jayson Ang – February 23, 2025 –

Singapore, a thriving global city-state, has become an attractive destination for real estate investors. Among the various property types available,...

Mandarin Top 5

Top 5 Tea Rooms in Singapore for High Tea

Jayson Ang – July 16, 2024 –

Singapore, a melting pot of diverse cultures and culinary delights, offers an exquisite high tea experience that caters to both...

All Buying Tips

Integrated Developments: Do They Live Up to the Hype? Check Out These Five Factors

Jayson Ang – March 3, 2024 –

TLDR Integrated developments in Singapore offer a one-stop solution for residents by combining residential, commercial, and transport elements in one...