Proposed Changes To Housing & Development Act Introduced

Source : Channel NewsAsia, 12 November 2007

Proposed amendments to the Housing and Development Act will provide owners of older flats with more help on common maintenance problems.

The amendments, which were introduced in Parliament Monday, allow for the Home Improvement Programme (HIP) to be implemented.

Under the HIP, HDB owners will get help with problems such as spalling concrete and ceiling leaks. They will also be offered a choice on what works they want to get done when their flats are upgraded.

Flats built before 1987 that have not undergone the Main Upgrading Programme are eligible for HIP.

The amended bill will also allow the Housing Development Board to conduct polling for the HIP on a block basis. Currently polling is done by precinct.

Works will be carried out if at least 75 per cent of the lessees vote in favour of such works. - CNA/ac

Inflation May Hit 5%, Then Tail Off In 2008: Lim Hng Kiang

Source : The Straits Times, Nov 12, 2007

RISING food prices recently may have worried many, but the Government has stepped in to assure Singaporeans that this phenomenon will tail off in the second half of 2008.

Speaking in Parliament on Monday, Minister for Trade and Industry Lim Hng Kiang told the House that prices of food items like diary products, vegetables and cereals have gone up due to the 'dearer imports from Australia and Malaysia'.

Mr Lim explained that the increase in inflation is fuelled by rising food prices and energy costs, as well as the increase in Goods and Services Tax (GST).

But he added that the GST effect will wear off by the second half of 2008.

In addition, transport costs will drop and oil prices will wash out next year.

Mr Lim stressed that Gross Domestic Product (GDP) has grown on average by more than six per cent since 2003.

He said growth has been broad-based across all sectors, wages have also been growing especially last year and this year. So against this backdrop, Singaporeans should not be surprised that inflation rises above the unusually low this year.

That also means Singaporeans should be wary in interpreting the rise in the Consumer Price Index (CPI) as that of an increase in the cost of living.

Pointing out that the CPI is expected to increase by about four to five per cent by first quarter next year, Mr Lim said that the CPI measures average changes in prices across all households.

He added that the cost of living of each individual household is dependent on its spending pattern.

He went on to say that a rise in CPI can reflect a rise in technical factors rather than a rise in prices faced by consumers.

In response to Jalan Besar GRC Member of Parliament Dr Lily Neo's questions on strengthening the Singapore dollar and the components of CPI calculation, he said food accounts for 23 per cent of the CPI calculation, while transport accounts for about 21 to 22 per cent.

Mr Lim added that the Government measures the CPI affecting the different income groups and will keep tabs on the impact of inflation.

Nominated Member of Parliament Sylvia Lim also asked if the Government is looking at further diversifying food sources as well as increasing local food production.

To tackle this issue, Mr Lim said the Government can diversify food supply sources, which is what they have been doing, but he stressed that this solution is not always applicable.

Citing the worldwide rise in corn feed, Mr Lim said it's difficult to keep prices of chickens down when there is no cushioning available.

Related Video Link - http://tinyurl.com/2qvarp
S'pore getting too expensive?


Singapore's consumer price index (CPI) is expected to rise by about four to five per cent in the first quarter of 2008.

Speaking in Parliament today, Trade and Industry Minister Lim Hng Kiang said the CPI will show an 'upward trend' but he also sought to put things in perspective saying this increase does not equal a rise in inflation.

In fact, Mr Lim said inflation is expected to end by the second quarter of next year.

But as Claire Huang reports, Singaporeans are feeling the pinch despite the Government's assurances.

Annual Values Of HDB Flats To Rise

Source : The Straits Times, Nov 13, 2007

GET ready to pay more property tax next year. Along with the rise in home prices, the taxman is revising the value of most properties upwards.

However, rebates given to offset the impact of the goods and services tax (GST) hike this year will soften the move's impact.

The annual values of all types of Housing Board (HDB) flats will be raised from Jan 1, said the Inland Revenue Authority of Singapore (Iras) in a statement yesterday. This means property taxes, which amount to 4 per cent of the annual values of owner-occupied homes, will rise.

Asked about private homes, Iras said: 'The annual values of most private residential properties have already been reassessed to reflect the current market rental levels during the year. The average increase for these private residential properties is about 20 per cent.'

Annual values of private residential properties in the central core area have generally increased between 20 per cent and 50 per cent this year.

The annual values will increase by an average of 18 per cent for HDB four-room and executive flats and 20 per cent for one-, two- and five-room flats. Three-room flats will face the greatest increase of 25 per cent.

Most HDB flat owners, however, will not pay higher taxes even after the revision, because of property tax rebates granted earlier this year to offset the impact of the GST hike.

Currently, owners of all one- and two-room flats, as well as 13 per cent of owners of three-room flats, do not pay property taxes because of earlier GST rebates.

The 2007 GST offset package gives all owners who are living in their property an extra $100 rebate annually for next year and 2009.

This means 90 per cent of all owners of HDB flats will not pay more property tax next year. In fact, 60 per cent of three-room flat owners will pay zero property tax, while 40 per cent will pay less tax than now.

About 15 per cent of owners of four- and five-room and executive flats face a hike in tax payable, but not more than $40.

The last time the annual values of HDB flats were raised was in 2004, and that doubled the number of home owners paying property tax. The increase brought in an extra $40 million a year for the Government.

IRAS To Raise Annual Values Of HDB Flats

Source : The Business Times, November 13, 2007

Market rental values have increased significantly, it says

THE Inland Revenue Authority of Singapore (IRAS) is raising annual values (AVs) for all Housing & Development Board (HDB) flat types for the first time in about four years, to reflect the 'significant increase in their market rental values'.


















From Jan 1, 2008, the average AVs will go up between 18 and 25 per cent, with the biggest hike for three-room flats.

IRAS' spokeswoman noted that IRAS regularly reviews AVs of properties in Singapore to reflect their prevailing rental values.

'In the case of HDB flats, however, AVs had not been increased since 2004 as they had been supportable by actual rental evidence. The AVs of most private residential properties have already been re-assessed to reflect the current market rental levels during the year,' she added.

In a joint statement with the Ministry of Finance, IRAS yesterday said it will be revising upwards the AVs of most properties, including HDB flats.

Generally, HDB flats in more centralised and popular areas like Bishan, Bukit Merah and Marine Parade would have higher AV increases, compared with other areas, the statement added.

The property tax rate in Singapore is set at 10 per cent of a property's AV, although owner-occupied residential properties enjoy a concessionary 4 per cent tax rate.

Island-wide, the average AV hike in percentage terms for the various HDB flat types are: 20 per cent for one-room and two-room flats, 25 per cent for three-room flats, 18 per cent for four-room flats, 20 per cent for five-room flats, and 18 per cent for executive flats.

However, the increase in AVs for owner-occupied HDB flats does not translate to a proportionate increase in property tax actually payable, due to the property tax rebates granted by the Government, including those announced as part of the GST Offset Package in Budget 2007.

As a result, 90 per cent of all HDB flat owners will not pay more property tax in 2008 even after the AVs of their flats go up.

For four-room, five-room and executive flat owners, about 15 per cent will pay a higher property tax but the increase will be less than $40, or about $3 a month.

All HDB flat owners will receive their valuation notices and property tax bills by Jan 1.

'IRAS encourages HDB flat owners to join the Giro scheme as it allows them to enjoy up to 12 interest-free monthly instalments,' the joint statement said.

S'pore To Revalue Gov't Flats, May Boost CPI

Source : The Business Times, November 12, 2007

Singapore said on Monday it will raise the annual value of government flats on which property taxes are calculated - a move that may boost inflation seen surging by up to 5 per cent early next year.

A government statement said the increases would take effect on January 1.

Housing makes up 21 per cent of the government's consumer price index, which hit a 12-year high of 2.9 per cent in August despite a minimal increase in the housing component.

Economists estimate that most of the CPI housing segment is from the value of government-built flats, in which over 80 per cent of Singaporeans live. This means inflation figures have not reflected a booming private property market that has seen residential prices soar to their highest in a decade, they say.

The average increase will be between 18 and 25 per cent for the government flats, depending on size, with those in central or more popular areas set higher, the Inland Revenue Authority of Singapore said in the statement, according to local media.

The government unexpectedly said on Monday that annual inflation, which averaged just 1 per cent in 2006, could almost double from current levels in the first quarter of next year. -- REUTERS