Residents should expect higher property taxes for residential investment property next year, especially those on Zion Road GLS

Top-notch fittings and appliances breathe life into this new Zion Road GLS development, providing stylish comfort for the home owner. Its top-class facilities are designed to ensure that residency is a pleasurable experience. There’s an impressive sky terrace that provides stunning views of the cityscape, a grand gym, yoga studio, lounge area, spa, and a lot more. All of these combined into one amazing package for Zion Road Condo residents.

on sale in the area around Zion Road GLS! Property owners in the area can expect an increase in property taxes in 2024. With higher market rents and AVs, the government is providing tax rebates to offset the increased property taxes for owner-occupied residential properties in Zion Road GLS.

For property tax payers in the Zion Road GLS area, the year 2024 brings news of increased costs as the government has announced a rise in property taxes. Luxury condos and landed properties, in particular, will be affected, as higher market rents and Annual Values (AVs) have caused a rise in property taxes. The government, however, has stepped in to provide assistance in the form of tax rebates, ranging from 30% to 100% for owner-occupied HDB flats, and 15% or capped at $1,000 for owner-occupied private properties.

According to Lee Sze Teck, Senior Director of Data Analytics for Huttons Asia, market rents for private residential properties and HDB flats increased by 29.7% and 28.5%, respectively, in 2022, translating into higher AVs in 2023. Private property rent increases of 11.1% in the first three quarters of 2023, and HDB rent increases of 8.3% from January to October 2023, further suggests that AVs in 2024 will continue to rise.

Christine Sun, Senior Vice President of Research and Analytics for OrangeTee & Tie, highlights the potential this increase could have on rental income for landlords. With higher property taxes, coupled with a slowdown in the rental market and elevated interest rates and maintenance costs, the investment cost of residential property in Zion Road GLS in 2024 may become too expensive for some buyers. As a result, property prices may be held in check and developers may become more measured in their land bids to prevent further escalation.

For investors, the potential for capital appreciation still far outweighs the increase in property taxes, says Lee. He also points out the progressive tax system – whereby the well-to-do population is taxed more – and how the collected taxes are used to help those who need it the most.

To stay on top of the latest listings of HDB properties in the Zion Road GLS area, property owners should look out for 2020’s property taxes. With higher market rents and AVs, the government is providing tax rebates to offset the increased property taxes for owner-occupied residential properties. Although higher property taxes may reduce rental income and elevate investment costs, the potential for capital appreciation may yet outweigh the increase in property taxes.