HOUSING AND DEVELOPMENT BOARD'S UPGRADING PROGRAMME (Annual value and property tax of upgraded flats)

Mr Cheo Chai Chen asked the Minister for National Development, under the Housing and Development Board's Upgrading Programme, (a) whether the annual value and, therefore, property tax of the upgraded flats will go up; and (b) whether, due to inflation, owners will have to pay more for the upgrading of their flats carried out at a later date.

Mr Lim Hng Kiang (for the Minister for National Development): Mr Speaker, Sir, annual values of HDB flats are determined by the Chief Assessor of the Inland Revenue Authority of Singapore. Like any other property, HDB flats, whether upgraded, new or old, will be professionally valued based on prevailing market conditions.

A point to note is that HDB flats are owner-occupied and, therefore, enjoy a concessionary property tax rate of 4%. As an example, a 3-room HDB flat would attract an annual property tax of only $100 on the average. So even if the property tax were to increase by 10%, it will not be more than $10 on the average.

Flat owners are required to share a certain percentage of total upgrading cost. As the Upgrading Programme is expected to take between 15 and 20 years, both Government and flat owners' share of upgrading cost in dollar terms will increase over time as a result of inflation.