Budget 2022 Property Tax in Singapore: Higher Property Taxes, Doubled GST Vouchers and U-Save Rebates, and More

Eugenia Liew
Budget 2022 Property Tax in Singapore: Higher Property Taxes, Doubled GST Vouchers and U-Save Rebates, and More
On 18 February 2022, Finance Minister Lawrence Wong announced that there will be higher property tax in the Budget 2022 statement. In case you missed it, here’s a quick summary of the few property-related announcements.
Budget 2022 property tax Singapore announcementChanges announced
Increase in property tax for non-owner-occupied residential propertiesFrom 12% to 36% (Previously 10% to 20%)
Increase in property tax for owner-occupied residential properties (the portion exceeding $30,000 annual value only)From 6% to 32% (Previously 4% to 16%)
Fresh Start Housing Scheme to be enhancedFresh Start Housing Grant will be increased from $35,000 to $50,000
Plans for more EV charging points near homes60,000 EV charging points in Singapore by 2030
Household Support PackageDoubled GST vouchers and U-Save rebates, an additional $200 for Singaporeans under age 21, additional $100 CDC vouchers for all Singaporean households

Budget 2022 Property Tax Singapore: Higher Taxes for Residential Properties

It was announced that property tax Singapore rates for non-owner-occupied residential properties will be raised from 10% to 20%, to 11% to 27% in 2023; and 12% to 36% in 2024, depending on the annual value of the property.
The property tax rate for non-owner occupied residential properties, including investment properties, will be raised from 10% to 20% presently; to 11% to 27% in 2023; and from 12% to 36% in 2024. Tax rates for owner-occupied residential properties with annual values of over $30,000 will also be increased. The taxation rate currently ranges from 4% to 16% beyond the first $8,000 of a property’s annual value. By 2023, the taxation range will stand at 5% to 23% beyond the first $30,000 valuation and at 6% to 32% in 2024.
Coming so soon after Additional Buyer’s Stamp Duties (ABSD) was increased in the latest round of property cooling measures (16 December 2021), this is another blow to investors owning multiple properties.
For owner-occupied residential properties, the budget 2022 property tax rates will also be increased from 5% to 23% in 2023 for the annual value portion that exceeds $30,000. Then, in 2024, the property taxation range will increase again from 6% to 32%.
The budget 2022 property tax announcement will raise the city-state’s property tax revenue by around $380 million per year.
With all the chatter on an impending wealth tax, the budget 2022 property tax is unsurprising.
“The increase in property tax rates clearly targets the wealthier demographic, as it gets progressively more expensive as the annual value of the homes increases. The average Singaporean homeowner who owns just the one humble property they live in is unaffected by this. However, those who own luxury homes and/or multiple properties will definitely feel the pinch,” Dr Tan Tee Khoon, Country Manager, PropertyGuru Singapore.

Budget Property Tax Singapore 2022: Enhanced Fresh Start Housing Scheme

The Fresh Start Housing Scheme caters to second-timer families with young children who are living in public rental flats. Through the scheme, they receive assistance towards owning their own 2-room Flexi flat.

Key Features of the Current Fresh Start Housing Scheme:

  • Can buy short-lease 2-room Flexi Flats and 3-room flats from BTO or SBF exercises
  • Short leases vary from 45 to 65 years but must cover all owners can spouse-occupiers until age 95
  • A 20-year Minimum Occupation Period (MOP) applies
  • Can take up an HDB housing loan, subject to credit assessment
  • Resale Levy capped at $30,000 (may be adjusted depending on lease)
  • Fresh Start Housing Grant increased to $50,000, consists of:
    • $35,000 upfront disbursement into CPF OA at key collection
    • $15,000 disburse into eligible applicants’ CPF OA over five years after key collection
  • Priority allocation in HDB sales exercises under Tenants’ Priority Scheme
You can find out more about the eligibility conditions on HDB.
As part of Budget 2022 property tax, HDB has enhanced the Fresh Start Housing Scheme to help second-timers public rental tenants with children. From May 2022, these families will also have the option to buy short-lease 3-room flats; previously, they were only able to purchase 2-room Flexi flats.
Additionally, the Fresh Start Housing Grant has been increased to $50,000, and eligible families will enjoy an upfront disbursement of $35,000 into their CPF Ordinary Account when they collect their keys. The remaining $15,000 will be added to the CPF Ordinary Account over the five years thereafter.

Budget Property Tax Singapore 2022: More EV Charging Points Near Homes

A key pillar of the Budget 2022 property tax is sustainability. In line with that and as part of the Singapore Green Plan, the Government has set aside more resources to phase out internal combustion engine vehicles by 2040 and encourage electric vehicle (EV) adoption.
By 2030, the Government intends to build 60,000 EV charging points near homes. 40,000 EV charging points will be found at the public car parks, while the other 20,000 will be located on private premises The first phase of this project will see Ang Mo Kio, Bedok, Choa Chu Kang, Jurong West, Punggol, Queenstown, Sembawang, and Tengah transforming into EV-ready towns by 2025. HDB car parks in these eight towns will all have EV charging points.
This will definitely be useful for the growing population of eco-conscious homeowners. According to Mr Wong, new EV car registrations have increased from 0.2% in 2020 to 4% in 2021.

Budget Property Tax Singapore 2022: New Household Support Package; GST Vouchers and U-Save Rebates for Eligible Households

Ah, we’ve saved your favourite for the last. The most anticipated part of every Budget speech is the GST voucher and U-Save rebate announcement.
If you don’t already know about the schemes, read our guide here: GST Voucher and U-Save Rebates: How Much Can You Get?
As part of the new Household Support Package, eligible households will receive double the GST vouchers and U-Save rebates for the rest of 2022. Those with children under age 21 may receive another $200 top-up to their Child Development Account, Edusave Account or Post-Secondary Education Account. Another $100 in Community Development Council (CDC) vouchers will also be given to all Singaporean households.
Additionally, to cushion the impact of higher carbon taxes announced, the Government will also be offering extra U-Save rebates (to be announced next year, 2023).
For more property news, content and resources, check out PropertyGuru’s guides section.
Need help financing your latest property purchase? Let the mortgage experts at PropertyGuru Finance help you find the best deals.
Disclaimer: The information is provided for general information only. PropertyGuru Pte Ltd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

Other FAQs on the Budget 2022 Property Tax

Property tax Singapore rates for non-owner-occupied residential properties will be raised from 10% to 20%, to 11% to 27% in 2023; and 12% to 36% in 2024, depending on the annual value of the property.

Residential properies are exempted from GST. For non-residential preoperties, the sale and lease of the property will be subjected to GST if ownership of the property is by a GST registered entity.

Annual value of a property is based on estimated market value of rentals. It is base on the estimated gross annual rent of a property, excluding the cost of furnishing, furniture, and maintenance fees.