According to statements made by Finance Minister Heng Swee Keat in the 2024 Budget, starting from next year, the annual value bands for property tax rates for all owner-occupied residential properties will be adjusted to better align with market realities. This means that the upper limit of the annual value bands for owner-occupied properties will be raised, allowing more homeowners to benefit in terms of taxation.

It is understood that under the current annual value bands, some HDB homeowners may even save up to 100% on property tax. For example, homeowners residing in properties with an annual value of $12,000 may not have to pay any property tax next year if the annual value remains unchanged. Additionally, it is expected that there will be larger reductions for properties with lower annual values, while the reductions for properties with higher annual values will be relatively smaller.

Internet

This tax adjustment is also influenced by changes in market rents. According to some real estate analysts, annual values are expected to remain unchanged due to softening rental rates. Private residential rents are on a downward trend, with an expected annual decline of up to 5%. This phenomenon also provides technical support and market rationale for adjusting the annual value bands to some extent.

It's important to note that this round of adjustments only applies to owner-occupied residential properties and does not include investment properties. The tax rates for investment properties will remain unchanged, continuing to range between 12% and 36%.