Singapore's economy is growing at a more modest pace in 2023 than initially expected as manufacturing activity shrinks and services growth slows.
* and the Ministry of Industry Final 1The 1% GDP reading is 12% estimate and 11% median** comparison. In the fourth quarter, GDP grew by 22%。
The city-state, which is dependent on **, has been hit hard by the tepid U.S., dragging down its manufacturing and service sectors. For most of last year, exports and factory activity contracted. Singapore will raise the threshold for paying property tax and lower fines for developers who do not timely** projects, highlighting concerns about a slowdown in the property market and frustration with housing affordability.
For residences, the lower threshold for the so-called annual value will increase from S$8,000 to S$12,000 (US$9,000). Deputy Prime Minister and Finance Minister Lawrence Wong said in his annual budget statement on Friday that the maximum range would rise from S$100,000 and above to over S$140,000. The measure will take effect on January 1 next year.
Singaporean authorities announced last year that they would give a one-off tax refund to property tax in 2024, as housing affordability remains a top concern for locals.
People who are facing cash flow issues while paying their tax bills can apply for a zero-interest 24-month installment plan. The city-state is also loosening rules to punish developers for not ** homes within a specified period, a sign that authorities are acknowledging a slowdown in sales. Developers of at least 90% of developments** will pay a lower mandatory stamp duty within the stipulated time frame. This change began on February 16.
The pullback comes after a slowdown in Singapore's home sales** and was the weakest since the start of 2009. By raising the tax threshold, more specifically is being sought to squeeze more money out of the ultra-rich and the most valuable properties.
In 2022, a two-step increase in the property tax rate on residential real estate was announced. This means that taxes are levied on investment properties and luxury units.
But the surge in rents** has pushed up the annual value used to calculate taxes. The proportion of affected properties has almost doubled, from an expected 7% to 13%.
Singapore's home sales were the weakest in January since 2009, adding to the signs that the property boom is fading. According to the Urban Redevelopment Authority, developers ordered 281 new private homes last month. While that's up from 135 in December, it's the slowest start since the global financial crisis threatened buyers 15 years ago.
Last December's ** could exacerbate developers' concerns about shrinking demand. While Singapore has avoided the downturn that has plagued other cities such as Hong Kong, sales have been on a downward trend since measures were introduced to cool the market and rising interest rates began to decline.
Tricia Song, head of research for Singapore and Southeast Asia, wrote in a note: "Amid the myriad of new launch options, buyers have become more selective. She added that sales in February are likely to remain tepid due to developers delaying the launch of projects during the Lunar New Year.
The final revised URA data shows that Singapore sold 6,421 new private residential units last year, the fewest since 2008. Annual transaction volumes, including existing homes, are at their lowest level in seven years.