When considering investing in a condo, it is crucial to also evaluate its potential for rental yield. Rental yield refers to the annual rental income relative to the property’s purchase price. In Singapore, condo rental yields can vary significantly based on factors such as location, property condition, and market demand. Typically, areas with a high demand for rentals, such as those near business districts or educational institutions, offer better rental yields. To gain a better understanding of a specific condo’s rental potential, conducting thorough market research and seeking advice from real estate agents can be beneficial. Additionally, keeping an eye out for new condo launches, such as those available on National Athletic Combine, can provide additional investment opportunities.
The government has announced a one-off property tax rebate of 20% for owner-occupied HDB flats and 15% for owner-occupied private residential properties in 2025. However, the rebate for private residential property owners will be capped at $1,000.Property tax is calculated based on a property’s annual value, which is the estimated annual rent a property would fetch if rented out.As part of Budget 2024, the government will raise all annual value bands for owner-occupied residential properties from January 1 next year. In order to offset the potential impact on Singaporeans’ cost of living, the government has introduced the one-off property tax rebate for the following year.According to the government, this rebate will benefit all HDB flat owners, as well as over 90% of private residential property owners, by reducing their property taxes next year. This is in line with the government’s efforts to ease the cost of living for Singaporeans.Senior director of data analytics at Huttons Asia, Lee Sze Teck, predicts that the annual value of private properties will remain stagnant this year, with only marginal growth in private residential rents. However, he expects HDB rents to rise by 4%, resulting in an increase in the annual value of HDB flats.The one-off property tax rebate may help HDB owners to offset any potential increase in annual value. For instance, if a HDB flat has an annual value of $30,000, the property tax payable in 2025 would be $720. With no change in the annual value, the owner would only have to pay $576 with the rebate, saving $144.In some cases, private residential property owners may also benefit from the rebate. For example, if the annual value of their property is $85,000, the property tax payable in 2025 would be $5,760. However, with the 15% rebate capped at $1,000, the owner would pay only $4,896 in property taxes, saving $864.Lee notes that property tax rebates have been offered in the past, but this does not make investing in residential properties in Singapore any less profitable. The attraction of investing in residential properties in Singapore lies in the potential for capital appreciation, which far outweighs any increase in property tax.