BT : BUDGET 2010: PROPERTY - What they say

Business Times - 23 Feb 2010

BUDGET 2010: PROPERTY
What they say

'As expected, the 2010 Budget is rather soft on the property market given the run-up in the residential market. The restructuring of the property tax system is unlikely to have an adverse affect on the residential sector given that the impact of these changes is limited to only a very small proportion of the market. Any cool off in the residential market in the forthcoming months is more likely to be a direct response to the recent spate of anti-speculative measures rather than a reaction to this property tax restructuring.'

- Chua Yang Liang, South-east Asia research head, Jones Lang LaSalle

'The adjustment to the property tax system is fair. It will make more people happy, and those who have to pay more should not be significantly affected by the 2% increase on their net annual value of their homes.'

- Choo Eng Chuan, tax partner, Ernst & Young Solutions LLP

'The REIT market faced considerable challenges during the recent financial crisis and this very positive move to extend the tax incentives for REITs to March 31, 2015, strengthens the confidence of investors and REIT sponsors that Singapore will continue to be the hub for REIT listings in the region. The dampener, however, is the introduction of a sunset clause for exemption of foreign sourced income for REITs which takes effect for such income received after March 31, 2015.'

- Leonard Ong, executive director, KPMG Tax Services

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