REDAS says more developers to pass tax savings on to tenants

Source : Channel NewsAsia - 2 Feb 2009

Singapore developers are likely to pass on benefits from this year’s Budget to their tenants. The Real Estate Developers’ Association of Singapore (REDAS) said this will help them through the current tough times.

Key players in the property industry came together to enjoy the traditional Lunar New Year dish, Yu Sheng (raw fish salad).

The dish symbolises abundance and prosperity and Singapore developers are hoping this will rub off on the property market in the Year of the Ox.

Speaking at the annual industry event on Monday, the Real Estate Developers Association said the downturn has been worse than expected.

But measures announced by the government during the Budget, like the 40 per cent property tax rebate, will help developers and many of them will be passing the savings on to their tenants.

Simon Cheong, president, REDAS, said: “However, we ask that the tenants be reasonable. Requests for substantial and sudden reduction in rentals is neither realistic nor sustainable for building owners in the long run.”

Last week, CapitaLand said it will give back S$41.5 million in rental rebates to its tenants. This translates to a four per cent reduction in rentals on average.

City Developments Limited (CDL) is also expected to pass at least a portion of tax savings to its tenants. Details will be announced in the coming days.

CDL is one of the biggest landlords in Singapore, with over four million square feet of lettable office, industrial, retail and residential space.