Property tax unlikely to impact investors, analysts say | 11 March 2013
Analysts are divided over the impact of new Singapore property taxes on investors, worldpropertychannel.com reports.
In an attempt to curb the ever-growing luxury property market, the government announced it would be introducing taxes of up to 20 per cent of non-owner occupied high-end buildings. The move mirrors that taken by Hong Kong’s government, to try and stop rising prices by making properties them seem a less attractive financial proposition.
As yet, most experts appear to think the taxes will not deter investors, hailing it ‘another pill to swallow’ but not a move that will seriously affect market dynamics.
“If a person is able to spend a few million dollars on a high-end luxury property, I believe they can well afford this increase in property tax,” said analyst Nicholas Mak.
Meanwhile other experts believe the taxes will have an impact on the price of commercial properties, which may become all the more interesting to investors who previously sought residential assets.
“Some property owners may switch to buying commercial properties instead. This will drive up the cost of commercial properties and overall business costs,” said KPMG tax partner, Leonard Ong.
That said, the government has yet to communicate full details of its plans, according to newlaunchproperty.org, thus most analysts still believe it’s too early to predict whether or not the tax will have the desired effect.
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Staff from Qube Global Software will attend MIPIM Asia, the two day global leader summit, at the beginning of December 2015. Topics this year include Asia Pacific inbound and outbound investment flows, regional development opportunities and projects, and real estate trends.
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