Discover How the 2024 Budget Can Help You Find Your Dream Property

As we near the end of February, the real estate scene in Singapore is undergoing changes that will have a significant impact on the market. One of the most significant of these changes is the 2024 budget, which promises to bring about a host of new opportunities and challenges for real estate investors, buyers, and sellers alike.

In this article, we'll take a closer look at the key provisions of the 2024 budget and explore how they could affect the real estate market and investors like you, ensuring that you're well-informed and equipped to make the best decisions for your investments.

Whether you're a pro at investing or thinking of buying for the first time, this is an article you won't want to miss!

ABSD Changes: A Welcome Gesture to the Property Market

First and foremost, let's talk about the "olive branch" that the government is extending to developers. According to the latest news, developers who have sold at least 90% of their units will be offered a tiered Additional Buyer's Stamp Duty (ABSD) rate.

This means that developers who have sold 90% of their units will only need to pay 5% ABSD, while those who have sold 95% or more will be exempted from ABSD altogether.

This move is expected as the government expects a slower take-up rate in the next two years. So does this mean new launch prices will drop? In short, NO.

What does this mean for you as an investor?

It means that you can expect more competitive pricing and better deals from developers nearing the deadline and are eager to sell their units. But don’t expect a drop of more than 20% as it defeats the purpose of paying ABSD.

Open Market Rental Vouchers: A Helping Hand for Couples Awaiting HDB 

The 2024 Budget also includes open market rental vouchers for couples who are waiting for their flat completion.

This move is aimed at helping couples who are facing financial difficulties due to the delay in their flat completion. With the rental vouchers, they can offset their rental expenses and ease their financial burden.

What does this mean for you as an investor?

It means that from a bottom-up perspective rental rates will be increasing. Hence supporting the prices for condos and landed. Except for the speculated luxury rentals, it will come down.

This can also translate to higher rental yields in the long run for your investment properties.

Revised Property Taxes: A Sweet for Owner-Occupied Properties

In addition, the 2024 Budget includes a revised property tax system that benefits owner-occupied properties with lower annual values.

This move is aimed at helping Singaporeans who own lower AV properties and may be struggling with their property taxes. With the revised property taxes, mid-tier properties benefit the most and enjoy lower tax rates.

What does this mean for you as an investor?

It means that previously, those living in higher-value properties who have no or lower income may have considered downgrading. With the revised AV bands, coupled with the 24-month interest-free instalment plan to retirees, owners may be able to pay the property taxes and hold firm to their current property.

It also means that you can expect less owners forced to sell their properties as they could not pay hefty taxes.

ABSD Refund for Eligible Single Singaporean Citizens Above 55: A Retirement Boost

Last but not least..

The 2024 Budget includes an ABSD refund for eligible single Singaporean citizens above 55.

This move is aimed at helping older Singaporeans who may be looking to downsize their properties or move to a retirement home.

With the ABSD refund, they can buy first and sell the first property within 6 months of collecting their keys.

What does this mean for you as an investor?

It means that you can expect more demand for smaller properties as older Singaporeans may be looking to downsize their properties.

This can translate to higher capital gains and rental yields for your investment properties.

Act Now and Capitalize on the 2024 Budget's Impact on Singapore Real Estate!

The 2024 Budget's impact on real estate is significant and cannot be ignored.

I urge you to act now and take advantage of this opportunity before it's too late.

Don't miss out on the chance to find your dream property and achieve your real estate goals. Contact me now to learn more about the 2024 Budget's impact on real estate and find your dream property before it's too late.