The Annual Value of your property helps the government decide the wealth of a household. Based on this and other criteria such as assessable income, the government decides how much it should give and take from us folks. Examples of “give” come in the form of financial support such as the Assurance Package and Cost-of-Living and GST vouchers. On the other hand, “take” refers to the property tax we have to pay every year by 31 January.
In short, it’s always good to know the Annual Value of a home, especially if you’re about to buy or rent that property.
But what is the definition of the Annual Value of a property, and how is it calculated? Let’s find out.
What is the Annual Value of a property (AV)?
Every property has an Annual Value. The straight-up definition of the Annual Value (AV) of a residential property is the estimated gross annual rent that a homeowner can collect if they rent out the property. This is excluding furnishings, furniture and maintenance fees.
The Inland Revenue Authority of Singapore (IRAS), which determines the AV of properties in Singapore, additionally clarifies that AV is determined “based on estimated market rentals of similar or comparable properties and not on the actual income received”.
IRAS also updates the AV of properties on an annual basis to reflect changes in the rental market, and sends owners a Valuation Notice to inform them of any revision to their property’s AV. IRAS additionally takes into account physical changes—such as a major upgrade of an HDB block—that would impact a property’s Annual Value.
Here’s a case study of how the Annual Value (AV) of a residential property is calculated for an individual
Andy owns a three-bedroom condo unit at Tanah Merah with a floor area of 1,200 square feet (sq ft). Originally an owner-occupier, Andy now rents out the whole unit, fully furnished, at S$4,100 a month.
To calculate the Annual Value (AV) of Andy’s property, IRAS uses the market rentals of similar or comparable properties within his development. This includes those of the same unit type, with roughly the same floor area within the same condo.
Let’s say there are five comparable rentals with amounts ranging from S$3,700 to S$4,500. IRAS considers these other rental transactions (not Andy’s) and discounts the cost of furnishing, furniture and maintenance fees. This actually reduces the actual value per month to about S$2,300, ultimately giving Andy’s property an Annual Value of S$27,600 (i.e. S$2,300 x 12 months).
Condo for rent in District 16 (Bedok, Upper East Coast)
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
3
2
1
2
1
2
2
2
2
2
2
2
1
2
1
2
2
2
2
2
2
2
2
1
2
2
2
2
2
2
2
2
2
1
2
2
2
2
2
2
2
1
2
2
2
1
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
1
2
2
2
2
2
2
3
2
3
3
3
3
3
3
3
3
3
2
3
3
3
3
3
2
3
2
3
3
3
3
3
2
3
2
3
3
3
3
3
3
3
2
3
2
3
3
3
2
3
3
3
3
3
3
3
3
3
2
3
2
3
3
3
3
3
2
3
2
3
3
3
2
3
3
3
2
4
3
4
4
4
3
4
4
4
4
4
3
4
4
4
3
4
3
4
5
4
3
4
3
4
3
4
4
4
3
4
3
4
3
4
3
4
4
4
3
4
3
4
Whether Andy is an owner-occupier or a landlord, the AV remains the same. The only difference is that, it would be taxed less if it is owner-occupied, rather than being rented out or left vacant.
(Note that most government schemes and subsidies also exclude those who own two or more properties. Also, an AV of S$27,600 in this case would make anyone living in that property ineligible for recent schemes such as the Assurance Package cash payouts for seniors — even Andy’s senior citizen father.)
How does my property’s Annual Value (AV) compare to others?
The Singapore government publishes the median Annual Values for all types of residential property in Singapore. Here are the median AVs for HDB flats and private residential properties for 2021. (As of this update, the figures for 2022 have not been published yet.)
| Property category | Property type | Median Annual Value (S$) for 2021 |
| HDB | 1- or 2-room | 5,340 |
| 3-room | 8,220 | |
| 4-room | 10,140 | |
| 5-room | 10,980 | |
| Executive and Others | 11,340 | |
| Private | Non-landed (including Executive Condominiums) | 23,400 |
| Landed | 37,200 |
Note the wide gap between the AV of HDB flats and the AV of private property. Typically, an AV of S$10,000 or less will cover all those who stay in a 1, 2, 3-room HDB flat and around half the residents of 4-room HDB flats. An AV of between S$10,000 and S$15,000 will cover most of those staying in 5-room HDB flats and less valuable private properties. An AV of more than S$25,000 includes the top 10% of the population who stay in more valuable private properties.
Recommended article: Property tax for homeowners in Singapore: How much to pay + Rebates + Deadline
Increase in Annual Value (AV) of property in 2023
Take note that as part of its annual review, IRAS has increased the Annual Value for both HDB and private residential properties in 2023. This means that most owners can expect to pay for higher property tax this year. The increase is in line with the increase in market rentals.
At the same time, as announced in the Budget 2022, property tax rates will be more progressive from 2023 onwards.
For owner-occupied properties with an annual value of more than S$30,000, the tax rate on the excess will be increased to 5-23% from 1 January 2023, and to 6-32% from 1 January 2024.
The property tax rate for non-owner-occupied properties (such as investment homes) will be even higher at 11-27% from 1 January 2023, and 12-36% from 1 January 2024.
Nevertheless, to mitigate the rising cost of living and inflation, the government has given off a one-time rebate of up to S$60 for the 2023 property tax bill of all owner-occupied properties.
How can I check the AV of a property?
You can check the AV of your own property free of charge using the View Property Dashboard on IRAS’ website. Other than that, you can also check the AV of any other property in Singapore using the Check Annual Value of Property tool, with a fee of S$2.50 per lookup.
You may also want to get an estimate of your property value with the 99 Property Value Tool.
What if I disagree with the AV of my property?
If you want to dispute the AV that IRAS has assigned to your property, you may go to the Object to Annual Value service on IRAS’ tax portal to file your objection. You can do so within 30 days from the date of the Valuation Notice.
Alternatively, you may object to the AV of your property as shown in the Valuation List (VL) at any time of the year, by 31 December of the year of the VL.
Take note that IRAS doesn’t consider the following as valid grounds for objection:
- Tax rates are too high
- There is no rental income as the property is owner-occupied
- Financial hardship
If you’re unsatisfied with the outcome of the appeal, you may choose to appeal further to the Valuation Review Board at the Ministry of Finance within 30 days (although we’ve yet to personally hear of someone taking such a big issue with their home’s AV). The appeal fee is S$50 for owner-occupiers of residential properties, and S$200 for other property types.
I bought a house. Will the government consider the AV of my new home or my old one?
After the property is transferred to you, your new address will automatically be updated with IRAS for property tax filing purposes. For purposes of receiving government schemes, vouchers and payouts, the AV is based on your NRIC.
Before the new property is transferred to you, your lawyer or HDB officer (for HDB flats) will apportion the current year tax between you and the seller. You may need to reimburse the seller a portion of the property tax, since they’ve already paid for the full year.
On the other hand, if there’s any outstanding tax amount, your lawyer or HDB officer will help you settle it with the seller.
If your home is a newly completed property, you’ll be taxed from the Temporary Occupation Permit (TOP) date. So if you only take possession of it at a later date, you can ask your lawyer to get reimbursement from the developer or the Building Service Centre (BSC) (for HDB flats).
Planning to sell your property soon? Let us help you get connected to a property agent.
If you found this article helpful, 99.co recommends How to estimate your property’s value like a pro with 99.co’s Property Value Tool and Property valuation — What goes into them and why they’re important.
[Additional reporting by Virginia Tanggono]
Frequently asked questions
The Annual Value of a property is the estimated gross annual rent of the property if it were to be rented out, excluding furniture, furnishings and maintenance fees. It’s based on the estimated market rentals or similar or comparable properties.
You can get an estimate of the Annual Value based on the property rentals through property portals like 99.co, as well as the 99 Property Value Tool. Alternatively, you can refer to the rentals of HDB flats through the HDB website, or the URA website for rentals of private residential properties.
IRAS considers the following factors to determine the Annual Value: rentals of similar or comparable properties in the area, the size, location and condition of the property and other relevant physical attributes.
Looking to sell your property?
Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.
One easy way is to send us a request for a credible and trusted property consultant to reach out to you.
Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.
If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.
Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.
Join our social media communities!
Main Facebook page
Facebook #All Things HDB page
Facebook #Condo-Maniacs page
Facebook #UHNWIs Luxury Homes page
Instagram Main
Instagram #HouseInsights
Instagram #HouseTips
TikTok Main
TikTok #HouseTips
Telegram
YouTube
Twitter
How is my AV calculated if I were to own a private property but I do not stay there, and instead I stay in a rented HDB flat or with relatives in their HDB flat. My address is listed as the HDB address.
Dear officer! I received an email asking for re-submission on my SIRS application , main reason is that I didn’t know what to put on AV section as I’m currently staying in a private condo which belongs to my god sister who is kind enough to put me up in her guest room since last year Jun with RENTAL FREE arrangement as I’m in financial difficulties ( I hv been renting other apartment before then) & she will let me stay till I can make enough income to rent another place. At the moment is a transition period for me… & I don’t own any property, so what should I put on the application form? Please advise! Tks!
During the renovation of my landed property (I cannot live there till TOP) do I pay owner occupied tax?