Property Tax reflective of economy

My property tax will be reduced by 15.5% come 2016 because of lower annual value of my property.

The annual values from 2000 to 2016 are in the table.

Year Annual Value ($) Per month ($) Change & Remarks
2000 to 2002                  18,000                1,500
2003                  16,200                1,350 Decrease/SARS & 9/11 attack
2004 to 2005                  15,000                1,250 Decrease
2006 to 28/2/2007                  16,200                1,350 Increase
1/3/2007 to 2008                  19,200                1,600 Increase
1/1/2009 to 1/3/2009                  26,400                2,200 Increase
2/3/2009 to 31/3/2010                  22,800                1,900 Decrease/Global Fin Crisis
1/4/2010 to 28/2/2011                  25,200                2,100 Increase
1/3/2011 to 2015                  31,200                2,600 Increase
2016                  27,600                2,300  

Decrease/Economy Slowdown

Is there any correlation between the annual value and state of the economy?

There were two periods of decline in the annual value.

  1. Year 2003 to 2005 – SARS in 2003, 9/11 attack on US’ WTC in 2001 and DotCom bubble burst 2000/2002.
  2. Year 2009 to 2010 – Global Financial Crisis.

The reduced annual value for 2016 suggests that the state of Singapore economy is not going to be good next year.

In the five years from 2011 to 2015, the annual values were very high (at $31,200). This was crazy and it was because there were strong demands for properties due to low credit interest rates. It is about time that some sense should be brought to the property market.

Copyright © 2015, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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