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Daily Archives: 2 Sep 2009

Govt may be taking steps to calm down the property market, say analysts

Posted on 2 Sep 2009 | Comments Off

The government could re-introduce land sales through the confirmed list and analysts said this could mean the government is taking steps to cool down the property market.

Last October, recession woes saw the government suspending land sales through the confirmed list.

But now the government said it will consider re-introducing it for the first half of next year.

National Development Minister Mah Bow Tan, said: “Now that the market is coming back, demand is coming back and the take-up is strong. There is every likelihood that we will resume the confirmed list.”

This means land parcels will be tendered according to scheduled dates and this will translate to more residential property launches.

But one analyst said while these changes will ease the market, they will take time to make any impact.

Nicholas Mak, property consultant, said: “This may be the first of actions by the government if they see that the property market shows signs of overheating especially if there is a lot of speculative buying. I think that could prompt the government to take further action.”

Public housing prices have gone up by almost 35 per cent over the last two years and the government said they’re expecting it to increase even further. Continue reading →

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Posted in Property Market / Real Estate

Tagged Market Report, Singapore, Singapore Property, Singapore Property Market

Proposal to tax current year income instead

Posted on 2 Sep 2009 | Comments Off

THE International Monetary Fund (IMF) has suggested that Singapore could revisit the idea of taxing current year income – instead of the prior year’s – as a way of stabilising the economy in future.

This proposal was mooted five years ago, but the Government decided against any changes for the time being after two months of consultation.

The IMF recommendation comes as Singapore emerges gradually from its deepest recession on record.

‘Further along the recovery path, fiscal policy would need to play a part in fostering likely transformations in a post-crisis world,’ the IMF said in its annual country report, finished in July after consultations with Singapore economic officials.

PricewaterhouseCoopers tax partner David Sandison said such a change would be appropriate in this recessionary environment as it better matches tax paid with income earned.

In future, such a system would provide fiscal support to the economy in a downturn, while helping companies and individuals with their cash flow.

Under the current system, taxpayers hit by a pay cut or companies that earn less this year pay income tax based on income the year before – meaning a heavier tax burden. Continue reading →