With the dilemmas that the property sector is experiencing these days, a special budget boost has been developed with measures intended to help developers who are waiting for a positive change in the demand for properties.
One of such budget boosts is the deferring of property tax for two years. These are for lands that have been approved for development. With this, developers on their land banks are spared for some period from paying tax which can amount to almost millions of dollars.
Rules such as the need to develop land within six years and no reselling until such land is developed have also been lightened for developers who own government land sites and for foreign developers who bought private residential land in Singapore. These developers have been given longer time to further build and sell their developed lands depending on conditions of the market.
Foreign developers are also given more elbow room when it comes to selling their developed properties. Originally, only two years are allowed for these foreign developers to sell their units, but two more years are added to their current allotted years. The same thing goes for renting procedures as even unsold units are now allowed for rent for four years.
Other property owners can also benefit from this assessment of property taxes this 2009. While property values and tax bills increased on the previous year, the market has now turned and a more recent assessment could yield greater savings.
Most developers and people behind fiscal issues think that all these steps taken by the Budget will greatly benefit the society.
Some of the benefits in deferring tax on property development are the reduction of business costs as well as greater flexibility for developers.