Numerous reviews of current tax policies requested by The Real Estate Developers’ Association of Singapore, ahead of Singapore’s 2017 Budget announcement.
- All segments of the property market continue to reel from persistent oversupply, rising vacancy rates and weak demand
- The Real Estate Developers’ Association of Singapore has called for a review of property tax policies among other changes it would like to see included in the upcoming Budget
- The outlook for the property market in 2017 remains murky, with uncertainties surrounding global geopolitics and macroeconomic developments
A review of property tax policies, a reduction in property tax for vacant land and a more transparent valuation process are just some of the requests put forward to the Singapore government, by The Real Estate Developers’ Association of Singapore (Redas), ahead of the upcoming 2017 Budget.
Other proposals put forward by the association include, tax concessions for vacant properties, tax exemptions for land and properties marked for, or under development, as well as reductions to business costs, regulatory fees and special training grants designed to enhance maintenance skills and technical expertise.
Redas President Augustine Tan said proposals come amid concerns that Singapore’s open economy is vulnerable to external shocks, given current geopolitical and economic uncertainty.
Mr Tan commented: “Negative sentiments can weigh heavily on the property market should there be a confluence of recessionary factors and destabilising events. This will in turn adversely affect Singapore’s economy. These considerations will go a long way to help companies contain costs and ensure business sustainability.”
Notably, as part of the Budget, Redas did not ask the Government to review or ease property cooling measures. Mr Tan did however highlight that all segments of the property market continue to reel from persistent oversupply, rising vacancy rates and weak demand, and emphasised that despite the recent uptick in sales at launches, it is “still too soon to conclude that a market recovery is in sight.”
The 2017 outlook remains murky with uncertainties surrounding global geopolitics and macroeconomic developments. Mr Tan commented: “With the weakened labour market, slower growth in employment and earnings, declining population growth, coupled with the prospect of rising interest rates, the current slowdown is expected to continue into 2017.”