Property measures have taken effect: Mah Bow Tan
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By Wayne Chan | Posted: 27 November 2010 1915 hrs
SINGAPORE : National Development Minister Mah Bow Tan said there are signs that measures to cool the property market have taken effect.
There has been at least a 20 per cent drop in HDB resale transactions this quarter while Cash-over-Valuation (COV) is down some 10 per cent from the third quarter.
Mr Mah was speaking at the ground breaking ceremony of the SkyVille@Dawson and SkyTerrace@Dawson on Saturday morning.
Public housing prices have started to ease since property cooling measures were introduced in August 30 this year.
Mr Mah said HDB resale transactions have gone down by at least 20 per cent so far this quarter.
Average transactions for the last three quarters were about 8,000 to 9,000 per quarter.
He said COV figures have also dropped by more than 10 per cent from around S$30,000 in the third quarter to about S$25,000 last month.
Mr Mah said: "With COVs coming down, I think it's good for first-time buyers who want to buy a resale flat in a particular area. And of course with transactions coming down, it does mean there will be more opportunities for first-time buyers to come into the market."
"So all in all, I would say the cooling measures have started to take effect. But the overall impact is still too early to tell. I think we'll wait a few months more."
Mr Mah said private property prices have also moderated, with price increases at about 3 per cent, compared to 5 per cent in previous quarters.
Private property transaction volumes also went down sharply in September after measures were introduced.
But with increasing liquidity and measures also being taken in other property markets overseas, Mr Mah noted there may be more funds entering Singapore.
This could create pressure for prices to go up.
"Based on the outcomes, based on how the market is reacting at the moment, we think it is a bit too early for us to do anything. So we will wait for a while. But we are watching it constantly," said Minister Mah.
Mr Mah also unveiled the Dawson Landscape Masterplan to residents of Dawson estate, a step towards realising the "housing in a park" concept announced in 2008.
They will enjoy enhanced pedestrian and cycling connections and environmentally-0friendly features like rain gardens to collect rain water.
While some residents appreciated the changes, others felt more could be done.
"The canal is quite good because I can cycle around here, so it's another form of exercise. And it links all the way to Great World (City) and further down, so it's quite good for jogging," said 25-year-old Tee Eng Hua, a Dawson Estate resident.
"What is lacking here is we have only a very small Dawson shopping place. They could have built a bigger one, now that SKyTerrace and SkyVille are coming on board," said Dawson Estate resident Loh Kok Yew.
Mr Mah also announced that HDB will launch the tender for the first mixed commercial-residential site at Punggol Town Centre next week.
The new development will be next to the Punggol Waterway and Punggol MRT.
- CNA /ls -
more feel good factor for the coming election.
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Not sure whether will he be voted out, but even if voted out he will come right back through the GRCs back door again. BTOs are a failure and will haunt him for the rest of his live.
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Originally posted by Askingyouto:
Not sure whether will he be voted out, but even if voted out he will come right back through the GRCs back door again. BTOs are a failure and will haunt him for the rest of his live.
may be he will be honourably retires to stop lose.
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Originally posted by Clivebenss:
may be he will be honourably retires to stop lose.
Only if he can let go of his millionaire salary.
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Originally posted by Askingyouto:
Only if he can let go of his millionaire salary.
He will helm a GLC with a higher salary scale.
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Everything will work well once every five years, it's a vicious cycle.
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'Progressive Property Taxes' for SG
**Pls see updates of this post at [link]**Quote:Originally Posted by Pro-Govt
Mah Bow Tan: Measures tough but meant to stabilise and not crash the property market [alt link]
Temasek Review: "Mr Mah emphasised that the measures are not permanent, and once they are no longer necessary, they will be removed.
The measures may not be the last as well, he warned, adding that the Government will monitor the market closely and may act again if needed."
Rather then so many knee jerk, stop gap measures, why can't MND just consider more transparent 'Progressive Property Taxes' for SG.
Based on Annual Value (AV)[alt HDB link] of your owner occupied home, the current tiers are as follows (Source: 'New Property Tax Computation for Home Owners from January 2011' [bensonkoh, 22Feb2010]):-- 0% on your first $6,000 of AV
- 4% on the next $59,000 of AV
- 6% on anything above $65,000 of AV
- 0% on your first $10,000 of AV
- 4% on next $20K of AV, above $10K (plus nothing)
- 6% on next $20k of AV above $30K plus $800.
- 8% on next $20K of AV above $50K plus $2000.
- 10% on next $20K of AV above $70K plus $3600.
- 12% on next $20K of AV above $90K plus $5600.
- 14% on any further AV above $110K plus $8000.
- All the a/m BEFORE a resident/PR owner occupied tax rebate of up to $800.
- The 'AV' shall be the "estimated annual rent that your property can fetch" [HDB pdf link] OR 3.5% of the property valuation, whichever the higher.
- SG has almost the highest Gini coefficient in the whole world [ref Business-week]. As such, there is an urgent need to reduce taxes on the lower and middle classes and to increase taxes on the upper classes.
All owner occupied properties below $30K AV pay zero property taxes, ditto all HDB properties.
The definition of 'owner' shall be defined as the person owning 50% or more in shares of the said property. - Some Singaporeans choose to live in pte property and enjoy the current benefits of 'owner occupied' tax discounts whilst turning their HDB flat (govt/ public subsidised housing) into a vehicle of profit. This new scheme would go some way towards eradicating this abnormality by limiting the owner occupier to a tax rebate of $800 (or the actual property tax, whichever lower)- a good substitution for the current 'limitless' owner occupied property tax discount. For the avoidance of doubt, where a person owns BOTH HDB and pte properties, the HDB one, such a person SHALL NOT enjoy the (up to) $800 ppty tax rebate on the pte property, it shall by default apply to the HDB one.
- Eradicate the need for the odd and queer double ('duplicate') 'owner occupied' property tax rebate currently applicable to HDB flats: the first under the usual 'owner occupied scheme' (discounted 4% property tax scheme), the second under the 'HDB owner occupied scheme' (up to $120 discount)[IRAS pamphlet link].
- Making permanent such progressive ppty taxes would also improve control over the entire residential property market rather then such laissez-faire attitudes dependent on stop gap measures and knee jerk responses- a more sincere concern for social inequalities is necessary rather than profit at all costs objectives.
- Allow more progressive taxes
benefiting the ave SGporean most with Singaporeans enjoying rebates,
this is because statistics show that poorer SGporeans are being
exploited by their richer brethren.
Allowing the rich to contribute more towards the building of SG is an egalitarian principle. Residents of public housing and cheaper private residents should not have to pay property tax at all/ pay reduced amounts.
Acc to 'SG Budget speech2010'>Shift to a Progressive Property Tax Regime, E.20.: "Owners of high-end properties with AVs of more than $77,000 .. comprise the top 3% of private owner-occupied residential properties, or the top 0.4% of all owner-occupied homes in Singapore". By my calc (see bottom), only owner occupied residential properties >$64K AV will pay increased property taxes, everyone else pays less then current (ditto for non-owner occupied res. ppties >$38K). Most pte landed properties are freehold properties, unlike HDB which by virtue of its 99yr lease, remains a depreciating asset- this is why HDB and cheaper pte ppty dwellers ought to enjoy ppty tax discounts/ rebates. - Foreigners owning SG properties shall only be entitled to an 'owner occupied tax discount' half of the SGporean/ PR rate- provided that they spend >180days in SG per annum.
- The waiver of majority of SG'poreans/PR from paying property taxes would do much to reduce SG's Gini coefficient as well as go far to promote home ownership amongst Singaporeans as the rich in SG are disallowed unlimited owner occupant tax benefits at the expense of poorer SGporeans.
- Allow the increased property taxes collected from rich home owners to offset any need to further increase GST for all Singaporeans and allow the 'progressiveness' of ppty tax rates to mirror income tax rates; make MND's job of regulating property demand easier, and make all Singaporeans feel more welcomed to a home governed on egalitarian principles.
- 'PS': For further consideration would be a freehold property tax surcharge whereby freehold properties are further taxed a surcharge of 20%. This is to subsidize our currently exorbitant defense spending, the peace and stability SG govt by which the value of expensive pte ppties in SG are upheld- this however, should be a point for consideration only as these additional taxes (like any other taxes) require a step wise approach to implementation.
Reference(s):
- 'Countries with the Biggest Gaps Between Rich and Poor': "Top 11 Countries With the Biggest Gaps Between Rich and Poor: 1 Hong Kong, 2 Singapore, 3 U.S., 4 Israel, 5 Portugal, 6 New Zealand..." [BusinessWk, 16Oct2009]
- 'Forever Young (With Lyric and Sing along)' [MrBrown Show Production]: "Gahmen say Singapore must be forever young! Sing to the tune of Alphaville's Forever Young. Lyric credits to MrBrown" [link]
Comments welcomed.
Calc in the post next or see: [link]. -
Ermmm.........
Hong Kong, Australia and UK don't even have property taxes if the property is owner occupied. But then again, this is "Uniquely Singapore", where the PAP milks the citizens for every cent.
Hong Kong
In Hong Kong , there is a kind of tax named a property tax, but it is not an ad valorem tax; it is actually classified as an income tax.
According to HK Inland Revenue Ordinance IRO s5B, all property owners shall not be subject to this tax; unless the HK property owner has received a consideration, the example is rental income for the year of assessment. The property tax shall be computed on the net assessable value at the standard rate.
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The above report came out in end Nov last year.
Yet only last week, they announced another change in policies with the drastic increase in stamp duty.
Yes, his measures are indeed cooling the property market.
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They need to really cool the property market just before the coming General Elections.
It would be hard to come up with a response if opposition candidates bring up this issue during the elections.
Yes! It will be Business As Usual after the elections.
Incidentally, how much do you think they will give out this year to buy your vote?
Afew months of heaven; 5 years of hell.
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aft GE...
I mean they could be selling those MRT station plots like crazy... quick buck
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Originally posted by sbst275:
aft GE...
I mean they could be selling those MRT station plots like crazy... quick buck
might be better to have lands not near MRT, too many stations liao, no privacy.
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he should be sack, 25% increment in population and still not see the demands to build more housing.
Is this a PAP Scam? .................he should be the lamb otherwise it has to be LHL lousy planning
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Originally posted by Clivebenss:
might be better to have lands not near MRT, too many stations liao, no privacy.
but they know private developers would want it. to develop shopping mall & some condo if possible.But do we need tat many shopping mall?
I think somewhere the formula is wrong
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he say take effect alrdy then take effect alrdy lor :)
He say his initiatives has worked alrdy then worked alrdy lor :)
Since when got minister come out to say: "oh sorry, I've failed."
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Originally posted by Rock^Star:
he say take effect alrdy then take effect alrdy lor :)
He say his initiatives has worked alrdy then worked alrdy lor :)
Since when got minister come out to say: "oh sorry, I've failed."
Boy, you people learn fast.
