Property owner-occupiers heads up, a financial windfall is coming your way!

2 min read

The IRAS has recently announced that it will be reducing the property tax rates for 2016. While the amendments in the rates are not world-changing, they are tailored to benefit 9 out of 10 property owner-occupiers, and do as such serve a very large segment of the market.

Tax reduction

All Housing and Development Board (HDB) flat owner-occupiers will pay lower or no property tax next year, while about 80% of the private homeowners will stand to gain. 28,200 owner-occupiers of HDB 3-room flats, along with round about all 2- and one flat owners will be exempted from property tax payment.

As for larger units, an estimated 380,000 owners of 4-room apartments, 225,000 owners of 5-room apartments, and 65,000 owner-occupiers of an executive flat will face lower taxes.

Private residential property owners will mostly stand to win too, although to a lesser degree. The 80% of the market that stands to benefit will see their tax duties reduce by 3 to 20%.

The decrease of taxes across the board is in line with the weakening rental market. The Annual Values of properties are reviewed annually to ensure that they reflect prevailing market rates, and with the latter falling the IRAS has set to reduce taxes accordingly.

So, while it probably won’t have you pay off your mortgage, and booking tickets to New York for Christmas may be a bit premature, most of us are going to go into the new year with some extra pocket money.

For more information, see Channel NewsAsia and TODAYonline

If you found this article helpful, recommends Property tax in Singapore: What and how much you should be paying and How to enhance your home to increase property value

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’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

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.

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