{"id":69582,"date":"2023-10-03T18:43:18","date_gmt":"2023-10-03T10:43:18","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=69582"},"modified":"2023-10-03T18:43:18","modified_gmt":"2023-10-03T10:43:18","slug":"tax-on-empty-properties","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/tax-on-empty-properties\/","title":{"rendered":"A discussion: Could tax on empty properties help growing rental demands?"},"content":{"rendered":"
<\/div>\r\n

Recently, Singapore has been bustling with activity, reaching a record high population rate of 5.92 million<\/a>. As our city-state continues to expand, so does the demand for rental accommodations. That got us thinking \u2013 could there be another solution to tackle this growing need? An article from the Institute of Real Estate and Urban Studies (Ireus) explores how tax on empty properties could impact our rental market<\/a>. <\/span><\/p>\r\n\r\n\r\n\r\n

Let’s dive into the details, shall we?\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

The current rental market<\/strong><\/h2>\r\n\r\n\r\n\r\n

During the turbulent times of the Covid-19 pandemic, Singapore’s rental landscape underwent significant shifts. The pandemic-induced delays in construction projects, coupled with a surge in demand from returning Singaporeans, caused rents to steadily climb.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

From August 2022 to August 2023, rental volumes experienced a staggering surge, jumping by an impressive 16.9%.<\/a> This surge was not confined to a specific segment; both public and private sectors felt the reverberations of this rental boom. <\/span><\/p>\r\n

Housing Development Board (HDB) rents, often considered a benchmark, displayed a modest uptick of 0.1% in July 2023. Meanwhile, the broader rental landscape witnessed a dramatic spike, with overall rental prices for all private residential properties rocketing by a substantial 29.7% year-on-year in 2022.<\/span><\/p>\r\n

 <\/p>\r\n

\r\n\r\n<\/p>\r\n\r\n\r\n\r\n

Despite these soaring figures, there is a glimmer of hope on the horizon. Analysts and experts speculate that the rental market might soon witness a cooling effect.<\/a> This anticipation stems from the gradual completion of residential units, signaling the imminent transition of individuals into their new homes. <\/span><\/p>\r\n\r\n\r\n\r\n

As these homes become occupied, the supply-demand dynamics are expected to balance, leading to the gradual easing of rental pressures.<\/span><\/p>\r\n\r\n\r\n\r\n

However, given our ever-changing property market, an important question emerges: What would a different country’s property tax system look like? Questions like this prompt us to explore new solutions by looking at how other countries have tackled similar challenges.<\/p>\r\n\r\n\r\n\r\n

Read also:<\/strong>\u00a0How much income should you spend on rent in Singapore?<\/a><\/p>\r\n\r\n\r\n\r\n