2009 Q1 saw only 10 investments in Singapore’s property market

Source : Channel NewsAsia - 8 Apr 2009

Singapore’s investment property market was quiet in the first quarter of the year, as the global recession continues.

The first three months of 2009 saw only 10 investment transactions, compared to 15 in the fourth quarter of last year.

All the deals were below S$40 million.

Real estate adviser DTZ said all the investment sales in the first quarter took place in the private sector.

This is partly due to the fact that government land sales through the confirmed list had been suspended and no reserve site was triggered.

DTZ added that private sales are expected to dominate for the rest of this year.

In addition, it said total investment sales plunged 58 per cent to S$153 million in the first quarter of this year.

This is the third lowest amount since 1998.

DTZ said residential investments contributed the most in total sales at 46 per cent in the first quarter.

The office sector was next with 34 per cent of total sales in the same period.

Investment sales in the industrial sector on the other hand fell the most in the quarter.

It dropped by 80 per cent to S$25 million.

DTZ’s senior director for investment advisory services and auction, Shaun Poh, said, “Activity in the investment market could pick up in the late part of the year when the economy is expected to recover and lending conditions ease. The market is not short of interested investors with money on hand, looking for prime properties.”

DTZ noted however, that there’s currently a mismatch in bid-ask prices, hampered by tight credit and expectations of falling rents.

IRAS reduces Annual Values of over 115,000 private properties in Q1

Source : Channel NewsAsia - 8 Apr 2009

The Inland Revenue Authority of Singapore (IRAS) has reduced the Annual Values of over 115,000 private properties in the first quarter of this year.

That is almost 100 per cent of the total number of properties reviewed.

With the reduction and the 40 per cent property tax rebate announced in this year’s Budget, owners of these properties will pay between 45 per cent and 60 per cent less in terms of property taxes.

In a news release, IRAS said most - 84,900 - of the properties which have Annual Values reduced are private residential ones.

IRAS has also reviewed more properties in the first quarter of this year, compared to the same period last year.

It reviewed 116,200 properties this first quarter, up from just 31,300 in the first three months of last year.

IRAS reviews the Annual Values of properties every year to ensure that they reflect prevailing rental market values for property tax computation.

It said that all private properties, including retail ones, will be reviewed by the third quarter of this year.

As for HDB flats, IRAS pointed out that Annual Values should be higher than the existing ones this year, based on current market rentals.

But it has kept the Annual Values of such flats unchanged this year in view of the poor economic conditions.