Unpack and Understand: Annual Value of Property in Singapore

In this article, we’ll explain what the Annual Value (AV) means, how it’s calculated, and why it’s so important for property owners. From understanding how it impacts your property tax bill to discovering how the Inland Revenue Authority of Singapore (IRAS) determines your property’s AV, we’ll guide you step-by-step to ensure you’re fully informed.

What Is the Annual Value of Property in Singapore (AV)?

The Annual Value of property in Singapore (AV) refers to the estimated gross annual rent your property could earn if rented out, excluding furniture, furnishings, and maintenance fees.

The Inland Revenue Authority of Singapore (IRAS) determines this value based on the market rentals of similar properties. It’s important to note that the Annual Value (AV) differs from a property valuation.

While a valuation reflects a property’s market value or sale price, its AV focuses solely on its rental value. This distinction means that your property’s AV may not correlate directly with its actual worth or actual rental income received.

Why AV Changes Over Time

The Annual Value of property is not a fixed figure—it fluctuates based on several factors. One of the biggest influences is rental market trends. If rental demand rises in a particular area, AVs of properties in that location will likely increase.

Other elements, such as infrastructural developments, renovations, or new amenities (e.g., an MRT station, malls, or schools), can also impact AV. Many homeowners use renovation loans to upgrade their properties, which can increase rental appeal and raise AV.

Conversely, a decline in rental demand or nearby developments that reduce an area’s desirability can lower AV. Since how much property tax you pay is directly linked to your AV, IRAS conducts regular reviews to ensure AVs reflect current market conditions.

This ensures that all homeowners’ annual property tax calculations remain fair and accurate.

Why You Need To Know Your AV

Understanding the Annual Value of property in Singapore (AV) is crucial for managing your financial obligations and maximising the benefits available to you as a property owner. Here’s how your property’s AV plays a pivotal role in two key areas:

Property Tax

The Annual Value (AV) is the foundation for calculating your property tax payable, which varies depending on whether the property is owner-occupied or non-owner-occupied. The tax is computed as a percentage of the property’s AV using progressive property tax rates.

For 2025, the property tax rates have been updated as follows:

Owner-Occupied Residential Properties

Annual Value ($)	Tax rate effective from 1 Jan 2025	Property Tax Payable
First $12,000 Next $28,000	0% 4%	$0 $1,120
First $40,000 Next $10,000	– 6%	$1,120 $600
First $50,000 Next $25,000	– 10%	$1,720 $2,500
First $75,000 Next $10,000	– 14%	$4,220 $1,400
First $85,000 Next $15,000	– 20%	$5,620 $3,000
First $100,000 Next $40,000	– 26%	$8,620 $10,400
First $140,000 Above $140,000	– 32%	$19,020

Non-Owner Occupied Properties

Annual Value ($)	Effective 1 Jan 2024	Property Tax Payable
First 30,000 Next $15,000	12% 20%	$3,600 $3,000
First $45,000 Next $15,000	– 28%	$6,600 $4,200
First $60,000 Above $60,000	– 36%	$10,800

The good news for 2025 is that some households, particularly those with owner-occupied properties, will see lower property taxes due to adjustments in tax rates for lower AV ranges.

This revision is part of the government’s effort to support households amidst rising costs.

Government Support

Your property’s AV also determines your eligibility for several government schemes designed to provide financial relief or support:

• GST Voucher Scheme: The AV of your residential property is a key criterion in assessing eligibility for GST Vouchers, which help lower-income households offset their GST expenses.

• Workfare Income Supplement (WIS): Homeowners with properties falling below a specific AV threshold may qualify for this incentive, which supplements workers’ incomes.

• Homeowners Selling Their Flats: Knowing your property’s AV can help you understand its potential market rentals, ensuring better decision-making when selling or renting out your flat.

By tracking your property’s AV, you can better manage your property tax bill and ensure you’re taking advantage of all available government schemes.

How To Calculate the AV

Calculating the annual property value in Singapore (AV) requires understanding how the Inland Revenue Authority of Singapore (IRAS) determines it based on market rentals and relevant physical attributes.

While IRAS provides the official AV for taxation purposes, property owners can estimate it using general guidelines. Here’s how you can calculate the AV across different property types.

How To Calculate the AV of Your Own Property

To estimate the AV of your property, you can follow these steps:

1. Identify Comparable Properties: Look for similar or comparable properties in your area with equivalent floor area, type (e.g., HDB flats, private residential properties, or executive condominiums), and other relevant physical attributes.

2. Determine the Rental Market Value: Assess the market rentals of these properties by reviewing recent rental transactions in the vicinity.

3. Exclude Furniture and Maintenance Fees: Subtract costs like furniture, furnishings, and maintenance fees from the estimated gross annual rent to arrive at the net rental value.

4. Use the Formula: Multiply the monthly rental value by 12 for the Annual Value (AV).

How To Calculate the AV of a Building

For a whole building, such as a commercial property or a multi-unit residential block, the AV is calculated by summing up the rental value of all individual units within the building.

1. Evaluate Each Unit: Identify the actual rental income received or the estimated market rentals for each unit.

2. Sum Up Annual Rentals: Add the annual rentals for all units.

3. Apply IRAS Standards: Ensure the rentals are consistent with the IRAS property valuation list or market values for similar properties.

How To Calculate the AV of a Development Site

For development sites where properties have yet to be built or completed, the AV is based on the potential rental value of the site if it is fully developed.

1. Consider the Land Use: Assess the zoning and permitted uses of the site.

2. Estimate Market Rentals: Project the rental income the site could generate upon development, factoring in its physical changes and potential.

3. Refer to Comparable Sites: Use data from similar properties in nearby areas for reference.

How To Calculate the AV of Specialised Property

Specialised properties, such as industrial facilities or recreational spaces, require unique considerations:

1. Assess Industry-Specific Rentals: Evaluate rental transactions for properties within the same industry or usage category.

2. Factor in Unique Attributes: Include features like equipment, infrastructure, or unique, relevant physical attributes influencing the rental value.

3. Use Professional Appraisals: Engage professional valuers to estimate market rentals if comparable data is unavailable.

By understanding these methods, property owners can better estimate their property’s AV and anticipate their property tax bill, ensuring they align with IRAS evaluations.

How To Check the AV of Your Own Property

The annual property value in Singapore (AV) is publicly accessible and can be checked through the Inland Revenue Authority of Singapore (IRAS) platform.

Knowing how to access this information is essential for managing your property tax and understanding your property’s standing in the market. Interestingly, you can also check the AV of other properties, which can be useful for comparison and planning.

Steps to Check Your Property’s AV

1. Log in to MyTax Portal: Visit the official IRAS digital service via the MyTax Portal. Use your Singpass credentials to log in securely.

2. Navigate to Property Records: Under the “Property” section, you can view your property’s AV details, including how it was determined.

3. Request AV Information: If you’re curious about the Annual Value (AV) of another property, you can submit a request via IRAS. A small fee applies to retrieving such data, but it’s valuable for evaluating similar properties or conducting market research.

4. Check Your Property Tax Bill: The platform will also show your property tax bill, helping you understand how the AV impacts your financial obligations.

How To Use AV To Calculate Your Property Tax

Property tax in Singapore is calculated based on the AV of your property and the applicable tax rates.

1. Property Tax Formula:

Annual Property Tax = Annual Value (AV) x Tax Rate

2. Residential Property Tax Rates

Owner-Occupied Residential Properties:

Portion of AV ($)	Tax Rate (%)
First $12,000	0%
Next $28,000	4%
Next $10,000	6%
Next $25,000	10%
Next $10,000	14%
Next $15,000	20%
Next $40,000	26%
Above $140,000	32%

Note: The first $12,000 of your property’s AV is tax-free under the owner-occupier tax rates.

Non-Owner-Occupied Residential Properties:

Portion of AV ($)	Tax Rate (%)
First $30,000	12%
Next $15,000	20%
Next $15,000	28%
Next $15,000	36%
Next $15,000	44%
Above $90,000	52%

Note: Non-owner-occupied properties are subject to higher tax rates.

Sample Calculation:

For an Owner-Occupied Property: If your home’s AV is $36,000, the property tax calculation would be:

• First $12,000 at 0%:

  • $12,000 x 0% = $0

• Next $24,000 at 4%:

  • $24,000 x 4% = $960

Total Property Tax Payable: $0 + $960 = $960 per year

For a Non-Owner-Occupied Property: If the same property’s AV is $36,000, the calculation would be:

• First $30,000 at 12%:

  • $30,000 x 12% = $3,600

• Next $6,000 at 20%:

  • $6,000 x 20% = $1,200

Total Property Tax Payable: $3,600 + $1,200 = $4,800 per year

How IRAS Calculates AV

The Inland Revenue Authority of Singapore (IRAS) calculates a property’s Annual Value (AV) based on its estimated gross annual rental income, assuming it is rented out.

They employ a comprehensive and systematic approach, ensuring fairness and consistency across various property types in Singapore.

What Factors Into IRAS Calculation

When determining a property’s AV, IRAS considers several relevant physical attributes and financial aspects. These include:

1. Market Rentals of Similar Properties:

   • IRAS assesses market rentals of similar or comparable properties in the area.

   • This excludes factors like furniture, furnishings, and maintenance fees, focusing only on the rental value of the whole unit.

2. Property’s Physical Features:

   • Attributes such as floor area, type of property (e.g., HDB flats, executive condominiums, or private residential properties), and other relevant physical attributes like age and condition are evaluated.

3. Rental Market Trends:

   • Changes in the rental market influence AV. For instance, an increase in rental transactions may lead to adjustments in AV to reflect market values.

4. Actual Rental Income:

   • While actual rental income received is not directly used, it provides a benchmark for assessing estimated gross annual rent.

5. Comparable Properties:

   • IRAS compares the property with similar properties nearby, ensuring that the AV reflects current market rentals.

Why Does IRAS Calculate AV This Way?

The methodology employed by IRAS ensures that the AV remains objective and equitable, irrespective of the property’s use or rental status.

1. Uniformity Across Properties: Using estimated market rentals, AV calculations are consistent whether the property is owner-occupied, non-owner-occupied, or rented out.

2. Targeted Support for Those in Need: The AV is a benchmark for assessing eligibility for government schemes like the GST Voucher Scheme and Workfare Income Supplement (WIS). This ensures that property owners with lower-valued homes receive more support.

3. Simplicity in Taxation: A standardised approach ensures ease of use when determining property tax payable without relying on subjective valuations.

How IRAS Factors in Rental Value

IRAS calculates the AV using the estimated gross annual rent of a property. This estimate reflects the rental value of the property if it were rented out, excluding costs such as furniture, furnishings, and maintenance fees.

• The actual rental income may vary due to factors like:

  • Temporary rental agreements

  • Negotiations between landlords and tenants

  • Seasonal fluctuations in the rental market

• Why AV Is Higher or Lower: If the market rentals of similar properties increase, the AV may also rise. Conversely, if rental demand in the area decreases, the AV might be adjusted downward.

Other Ways IRAS Calculates AV

In certain cases, IRAS may adopt alternative methods to determine a property’s AV:

1. Valuation Review Board: The Valuation Review Board may review valuations for complex properties, such as industrial or specialised buildings.

2. Direct Market Comparison: For unique properties, the AV may be directly determined based on market values of comparable properties in the vicinity.

3. Income Capitalisation Method: IRAS may factor in income potential to arrive at the AV for income-generating properties.

4. Cost Method: The AV may be based on construction costs and the projected rental value for specialised or newly developed properties.

By understanding how IRAS calculates the AV, property owners can better interpret their property tax bill and anticipate changes in their financial obligations.

How IRAS Reviews AV

The Inland Revenue Authority of Singapore (IRAS) reviews the Annual Value (AV) of properties annually to ensure that it reflects current market rentals. This process is essential to maintaining a fair and accurate system for determining property tax and assessing eligibility for various government schemes.

Why Does IRAS Review AV?

1. Reflecting Market Conditions:

   • The rental market is dynamic, with fluctuations influenced by economic changes, demand, and the supply of residential property. Regular reviews ensure that the property’s AV aligns with prevailing market rentals.

2. Maintaining Equity:

   • By considering market rentals of similar properties, IRAS ensures that properties of comparable value are taxed equitably.

3. Updating for Physical Changes:

   • Changes to a property’s physical attributes, such as renovations or alterations, can impact its rental value. IRAS reviews ensure such updates are accounted for in the AV.

4. Ensuring Government Support is Fairly Allocated:

   • The AV determines eligibility for government schemes, such as the GST Voucher Scheme and Workfare Income Supplement (WIS). Reviews ensure that those who need support most are accurately identified.

5. Consistency Across Property Types:

   • The review process ensures consistency and fairness across all property types, whether HDB flats, private property, or executive condominiums.

What To Do if You Think Your AV Isn’t Accurate

If you believe the Annual Value assigned to your property is incorrect, IRAS provides a transparent process for addressing your concerns.

Steps to Appeal or File an Objection

1. Check the Basis for AV Calculation:

   • Review the valuation notice sent by IRAS, which outlines how your property’s AV was determined. Then, compare it against similar or comparable properties in your area.

2. Submit an Appeal:

   • If you find valid grounds for disagreement, file an appeal via the IRAS digital service platform. Ensure you provide:

     • Reasons for your objection

     • Evidence, such as recent rental transactions or valuations of comparable properties

3. Pay Your Property Tax First:

   • While your appeal is being processed, you must still pay the property tax payable to avoid late penalties. Any necessary adjustments will be made if your appeal is successful.

4. Engage a Professional Valuer:

   • Consider hiring a licensed valuer to assess your property’s AV and provide expert evidence to support your appeal for complex cases.

5. Escalate to the Valuation Review Board (VRB):

   • If you’re dissatisfied with IRAS’ decision, you may escalate the case to the Valuation Review Board for further consideration.

Valid Grounds for Appeal

• Discrepancies in the floor area or other relevant physical attributes of the property

• Significant differences between the assigned AV and market rentals of similar properties

• Inaccuracies in IRAS’ assessment of the rental value

By proactively addressing concerns, property owners can ensure their property tax bill reflects the true value of their residential property.

What Does the AV of Other Properties Look Like?

The Annual Value (AV) varies across different types of properties in Singapore, depending on their market rentals, size, and other relevant physical attributes. Below is an overview of the median Annual Value for HDB flats and private residential properties, giving property owners insight into typical AV ranges.

HDB Flats

HDB flats form the backbone of Singapore’s housing market, and their AVs are influenced by location, flat type, and surrounding amenities.

HDB Flat Type	Median Annual Value
1 or 2 Room	$5,340
3 Room	$8,220
4 Room	$10,140
5 Room	$10,980
Executive & other HDB types	$11,340

The AVs of HDB flats are generally lower due to subsidised prices and government support. This keeps property tax for HDB flat owners relatively affordable.

Private Residential Properties

Private properties like condominiums and landed homes typically command higher annual values due to their prime locations, luxurious amenities, and larger floor areas.

Private Property Type	Median Annual Value
Non-landed (includes Executive Condominiums)	$23,400
Landed private property	$37,200

Key Differences Between HDB and Private Property AVs

• HDB Flats: AVs are generally lower and more consistent due to government pricing policies.

• Private Properties: AVs vary widely based on the rental market, location, and exclusivity.

Conclusion

The Annual Value of property in Singapore is a vital factor that influences not just your property tax but also your eligibility for various government schemes and your overall financial strategy as a property owner. By understanding how your property’s AV is determined, reviewed, and utilised, you can ensure accuracy in your property tax bill and take full advantage of your available benefits.

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