Lower property taxes for 95% owner-occupied homes in 2014

SINGAPORE - Most owner-occupied homes will have to pay less in property tax next year, the Inland Revenue Authority of Singapore (IRAS) said on Tuesday.

Under the new Progressive Property Tax Rates regime announced during Budget 2013, all owner-occupied HDB flats and three quarters of owner-occupied private homes - or 95 per cent of owner-occupied homes - will see lower property tax bills.

Taking into account non-owner-occupied homes as well, 80 per cent of all homes will pay lower property tax in 2014.

With the new property tax structure, the Annual Value (AV) exemption threshold for which no tax applies will be $8,000, up from $6,000 previously. Owners who live in their own homes will not have to pay property tax on the first $8,000 of the Annual Value (AV) of their properties from Jan 1, 2014.

The new property tax structure also increases the progressivity of the property tax structure by taxing properties with higher AVs more.

A property's AV, which Iras reviews annually, is based on the estimated annual market rent of the property if it was to be let out. This is then used as a basis to compute the property tax payable.

The AV of three to five-room HDB flats will be revised next year, as market rents for these flats have increased by about 3 per cent since the last revision in January this year.

There will be no change to the AV of the other types of flats as rents on these flats have remained largely the same.

This means that all one and two-room HDB owner-occupiers will continue to pay no property tax.

Other HDB owner-occupiers will enjoy property tax savings ranging from $28 to $40 in 2014, IRAS added.

In total, 80 per cent of all homes will face lower property tax in 2014.

The property tax payable for HDB owner-occupied flats in 2014 are as follows:

AV and Property Tax for Owner-Occupied Private Residential Property

The market rents of 70 per cent of private residential properties over the past year have remained largely the same since the last AV revision. Only 30 per cent saw an increase in AV. Under the new property tax structure, 74 per cent of private owner-occupiers will pay less tax in 2014.

Property tax rates for non-owner-occupied residential properties with AVs above $30,000 will be increased gradually from January 1.

With this change, 74 per cent of non-owner-occupied private residential properties and HDB flats will have higher property taxes after applying the new tax rates on their 2014 AVs.

Property owners will receive their property tax notices and bills by the end of this year, and are reminded to pay their property tax by January 31.

ljessica@sph.com.sg

Tuesday, Nov 26, 2013

Source: AsiaOne

Can you use your CPF to repay housing loans after 55?

Whether your CPF can be used to repay housing loans after 55, depends on how much CPF savings you have at 55, and how much you have already used for housing. 

When you turn 55, a Retirement Account (RA) is created using savings from first your Special Account, then Ordinary Account (OA) to meet the Minimum Sum (MS) relevant to your cohort. While the MS provides monthly payouts from your draw down age, the balance in your OA can be used for housing loan repayments. 

Members who are able to set aside more than half of the MS, will be able to use the amount in excess of half of the MS for housing loan repayments. 

For example: 

If you continue working after 55, your CPF OA contributions can also be used for housing loan repayments. 

However, housing withdrawal limits may apply. This is to safeguard members from overspending on their housing loan repayments at the expense of their retirement savings.

Source: CPF

MINIMUM SUM SCHEME 2013

How much is the Minimum Sum (MS)?

The MS was set at $80,000 in 2003 and is being raised gradually until it reaches $120,000 (in 2003 dollars) in 2015. The MS will be adjusted yearly for inflation.

55th birthday on or after	MS (in 2003 dollars)	MS (after adjustment for inflation)
1 July 2003	$80,000	$80,000
1 July 2004	$84,000	$84,500
1 July 2005	$88,000	$90,000
1 July 2006	$92,000	$94,600
1 July 2007	$96,000	$99,600
1 July 2008	$100,000	$106,000
1 July 2009	$104,000	$117,000
1 July 2010	$108,000	$123,000
1 July 2011	$112,000	$131,000
1 July 2012	$113,000	$139,000
1 July 2013	$115,000	$148,000
1 July 2014	To be announced	} To be
1 July 2015	$120,000	} announced

Why do I need to set aside MS?

Setting aside the MS when you reach 55 years old ensures that you have a regular income from your drawdown age (DDA) to support a basic standard of living.

Year of Birth	Drawdown age
1943 and before	60
1944 to 1949	62
1950 and 1951	63
1952 and 1953	64
1954 and after	65

How is MS set aside?

When you reach 55 years old, your Special Account (SA) savings, followed by your Ordinary Account (OA) savings will be transferred to your Retirement Account (RA) to meet your MS.

If the savings in your SA and OA are not enough to make up the MS, your property which was purchased using CPF savings will be automatically pledged, for up to half of your MS, to make up the difference. The pledge amount will be the amount of CPF used for the property or the Minimum Sum shortfall, whichever is lower.

If you sell the property, you will need to refund the CPF that was used to buy it and the accrued interest. The amount refunded will be used to top up to the MS that applies to you, and the current Medisave Required Amount (MRA) of $38,500. The balance of the housing refunds will then be paid to you automatically. Also, if you had withdrawn your RA savings by pledging your property, you need to refund the amount withdrawn from your RA upon the property sale to redeem the pledge.

If there is still a MS shortfall in your RA after pledging your property, a portion of the new inflows like working contributions, voluntary contributions, government top-ups and other refunds received after 55 years old will be used to make up the shortfall upon your subsequent CPF withdrawals.

After setting aside your MS and current MRA, you can choose to withdraw the remaining cash balances in your OA and SA, or continue to keep your savings in CPF to earn interest.

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For full info: CPF Minimum Sum

Source: CPF

Resale Checklist for Buyers Effect From 1st Dec 2013

The Resale Checklist highlights the important policies and procedures that you should take note of before buying a resale flat. The checklist must be completed before you exercise the Option to Purchase. 

• Guide to Submit the Resale Checklist via the Resale Checklist for Sellers/Buyers (e-Service) New!
• Guide to Submit the Hardcopy Resale Checklist together with the Resale Application To be discontinued on 1 Dec 2013

Guide to Submit the Resale Checklist via the Resale Checklist for Sellers/Buyers e-Service

What’s New? The Resale Checklist has gone ‘e’! From 24 October 2013, you can complete and submit the checklist online via the Resale Checklist for Sellers/Buyers (e-Service). From 1 December 2013, the HDB will only accept Resale Checklists submitted via this e-Service.

For buyers who have not engaged the services of a salesperson

Step 1		You (one of the buyers) may log on to Resale Checklist for Sellers/Buyers (e-Service) using your SingPass and click on the ‘Submit New Checklist’ button.
Step 2		You and all the co-applicants (if any) must go through the items in the Resale Checklist. You will need to provide the particulars of all the buyers and your email address.
Step 3		Upon completing the checklist and reviewing the information click the ‘Submit’ button to submit the checklist to the HDB. An acknowledgement page with a checklist serial number will be generated upon successful submission of the checklist. The acknowledgment page will also be sent to all buyers by e-mail.

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For buyers who have engaged the services of a salesperson

Step 1	If you have engaged the services of a salesperson, your salesperson is required to go through and complete the checklist with you. The salesperson will first click on the ‘Submit New Checklist’ button on the Resale Checklist for Sellers/Buyers (e-Service) and log in with his/her SingPass.
Step 2	The salesperson will need to provide his particulars and the particulars of all the buyers, including name, NRIC number and email address. The salesperson is required to go through all the items in the checklist with all the buyers.
Step 3	Upon completing the checklist and reviewing the information click the ‘Submit’ button to forward the checklist to one of the buyers for endorsement. The checklist has to be endorsed by the buyer by the next day from the date the salesperson completes the checklist.
Step 4	The buyer who is endorsing the checklist (you) will click on the ‘Retrieve Completed Checklist’ button on the Resale Checklist for Sellers/Buyers (e-Service) and log in with your SingPass. You are required to provide the serial number of the checklist that the salesperson had completed. You will need to review the information provided and confirm that the salesperson has gone through the checklist with you and all co-applicants(if any). You will need to click the ‘Submit’ button to submit the checklist to the HDB. An acknowledgement page with the same checklist serial number will be generated upon successful submission of the checklist. The acknowledgment page will also be sent to you by e-mail.

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Important Notes:

• Buyers can only exercise the Option to Purchase after completing the checklist.
• The checklist serial number is required when submitting the resale application.
• If you are not able to submit your resale application within 6 months after the date the checklist is completed, you will need to resubmit a new checklist. This is to ensure that buyers are aware of the latest policies on buying an HDB flat.
• All buyers and their salesperson, if any, are required to sign on the completed checklist during the resale First Appointment. The completed checklist will be printed by the HDB for your signing.

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For full info: Resale Checklist
Source: HDB

HDB Resale Price Index 3Q 2013

The HDB Resale Price Index tracks the overall price movement of the public residential market. The index is calculated using resale transactions registered across various towns, flat types and models, with the fourth quarter of 1998 as the base period (i.e. index has a value of 100 in 4Q98). 

The Index is used by comparing how it changes from one period to another. For example, if the index increases from 100 to 108 in one year, it means that on the whole, HDB resale flat prices increased by about 8% over this period. 

PRICE INDEX OF HDB RESALE FLATS

Source: HDB

RENTAL INDICES OF NON-LANDED PROPERTIES BY LOCALITY IN SINGAPORE 3Q 2013

Quarter	CCR*	RCR^	OCR
3Q/2009	133.3	131.4	118.3
4Q/2009	134.5	131.5	118.3
1Q/2010	141.6	136.8	124.0
2Q/2010	150.6	143.8	131.6
3Q/2010	156.0	149.1	136.3
4Q/2010	159.5	154.7	140.8
1Q/2011	161.4	155.3	143.0
2Q/2011	162.8	156.7	145.1
3Q/2011	163.5	158.2	146.6
4Q/2011	163.6	160.1	147.4
1Q/2012	164.4	160.7	147.7
2Q/2012	164.2	161.8	149.2
3Q/2012	165.1	163.4	151.6
4Q/2012	166.2	164.4	153.4
1Q/2013	167.6	164.5	154.6
2Q/2013	168.4	164.7	154.6
3Q/2013	169.0	165.7	153.4

* Core Central Region comprises Postal Districts 9, 10, 11, Downtown Core Planning Area and
Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central
Region (RCR) is available at: http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf
^ Rest of Central Region comprises the area within Central Region that is outside postal districts 9,
10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region showing the Core
Central Region (CCR) and the Rest of Central Region (RCR) is available at:
http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf

RENTAL INDICES OF NON-LANDED PROPERTIES BY LOCALITY 

Source: URA (As on 25th Oct 2013)

NUMBER OF RESALE TRANSACTIONS FOR PRIVATE RESIDENTIAL UNITS BY MARKET SEGMENT IN SINGAPORE 3Q 2013

Core Central Region *			Rest of Central Region **			Outside Central Region			Whole Singapore
Period	Resale ^		Period	Resale ^		Period	Resale ^		Period	Resale ^
2Q/2010	962		2Q/2010	1537		2Q/2010	2754		2Q/2010	5253
3Q/2010	825		3Q/2010	1382		3Q/2010	2512		3Q/2010	4719
4Q/2010	806		4Q/2010	1265		4Q/2010	2166		4Q/2010	4237
1Q/2011	604		1Q/2011	1016		1Q/2011	1887		1Q/2011	3507
2Q/2011	831		2Q/2011	1307		2Q/2011	2393		2Q/2011	4531
3Q/2011	606		3Q/2011	965		3Q/2011	1736		3Q/2011	3307
4Q/2011	486		4Q/2011	802		4Q/2011	1413		4Q/2011	2701
1Q/2012	376		1Q/2012	692		1Q/2012	1142		1Q/2012	2210
2Q/2012	750		2Q/2012	1126		2Q/2012	1958		2Q/2012	3834
3Q/2012	757		3Q/2012	1130		3Q/2012	1824		3Q/2012	3711
4Q/2012	808		4Q/2012	1002		4Q/2012	1649		4Q/2012	3459
1Q/2013	407		1Q/2013	622		1Q/2013	974		1Q/2013	2003
2Q/2013	441		2Q/2013	610		2Q/2013	1024		2Q/2013	2075
3Q/2013	315		3Q/2013	386		3Q/2013	639		3Q/2013	1340

* Core Central Region comprises Postal Districts 9, 10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region

showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at:

http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf

** Rest of Central Region comprises the area within Central Region that is outside postal districts 9, 10, 11, Downtown Core Planning

Area and Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at:

http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf

^ Data on the number of Sub-sale and Resale units, excluding en-bloc sale units, are collated from caveats lodged at the Singapore

Land Authority. As the lodging of caveats is voluntary and they do not have to be lodged by a certain date, the statistics published here

cover only caveats lodged by the cut-off date. The statistics will be updated in the next quarter when more caveats are received.

NUMBER OF RESALE TRANSACTIONS FOR PRIVATE RESIDENTIAL UNITS BY MARKET SEGMENT 

Source: URA (As on 25th Oct 2013)

Sengkang Median COV & Resale Prices for Resale Cases Registered in the 3rd Quarter 2013

Sengkang Median Cash-Over-Valuation (COV) for Resale Cases Registered in the 3rd Quarter 2013

4-Room: S$15,000
5-Room: S$18,000
Executive: S$20,000

COV Link

Sengkang Median Resale Prices by Town and Flat Type for Resale Cases Registered in 3rd Quarter 2013

4-Room: S$486,500
5-Room: S$532,000
Executive: S$620,000

Resale Prices Link:

Soure: HDB

Singapore's private home resale prices continue to soften in October

SINGAPORE - Private home resale prices slipped 0.1 per cent in October from the preceding month, mainly due to a price decline in the suburban region, flash estimates from the Singapore Real Estate Exchange (SRX) showed on Friday.

Here is the full report from SRX:

Resale prices of non-landed private residential units softened by 0.1 per cent in October 2013.

The overall price drop was led by Outside Central Region's (OCR) 1.4 per cent drop, followed by Core Central Region's (CCR) prices slipping 0.5 per cent. On the flip side, Rest of Central Region (RCR) saw price gain of 0.4 per cent.

An estimated 486 non-landed homes were resold in October, a 13.5 per cent improvement from September's 428 units sold. HOWEVER, on a year-on-year basis, this represents a more than 50 per cent drop from the 1,435 units transacted in October 2012;

Non-landed Private Residential Rental:

Based on the non-landed residential rental SPI sub-index, overall rental prices for non-landed private residential in October dropped by 1.5 per cent from September, representing the lowest rental price level since June 2012. 

This represents a drop of 4.2 per cent since the rental price peak in January of this year;

On a regional basis, rental prices in the CCR and OCR softened by 1.3 per cent and 1.9 per cent respectively, while RCR's rents remained flat;

HDB Resale and Rental:

Overall HDB Cash-Over-Valuation (COV) dropped another $3,000 in October to reach $12,000 - the lowest since July 2009, when the overall COV was $10,000;

Overall HDB resale prices slipped 1.6 per cent in October, following a slight gain of 0.2 per cent in the preceding month. This represents a 2.8 per cent drop from the price peak in January of this year;

According to flash estimates, 1,318 HDB flats were sold in October's resale market, a 26.5 per cent rebound from September's 1,042 resale cases. HOWEVER, on a year-on-year basis, October resales volumes represented a 20 per cent drop from the same period in 2012.

An estimated 1,506 HDB flats were rented in October 2013, up by 7.7 per cent compared to September.

Friday, Nov 08, 2013

Melissa Tan

The Straits Times

Source: AsiaOne