Assessment of a redevelopment site
The fifth edition, published 30 January 2026, concerns units collectively sold to a developer. For redevelopment sites, property tax is 10% of annual value, with annual value determined at 5% of estimated land market value under section 2(6)(b). Land value is estimated on a freehold basis even for leasehold land. Temporary occupation or rental, and a building not yet demolished, do not alone prevent this assessment.
Initial effective date
Land assessment begins at transfer or when all units have been vacated, whichever is later, but no later than six months from transfer to the developer. This administrative concession reflects sellers commonly receiving up to six months to vacate. It differs from the separate leasing deferment.
Minimum leasing criteria
To retain the original development for leasing instead of redevelopment, at least 25% of original units must be leased on arm’s-length terms to unrelated parties for at least one year. Those agreements must not let the landlord evict tenants during the tenancy through a termination clause. Letting and use must be approved by the authorities. The guide distinguishes a landlord termination clause from a tenant diplomatic clause for leaving the country or employer.
Head-tenant arrangement
A whole development leased to an unrelated head tenant for more than one year can qualify, but at least 25% of units must be sublet for at least a year and actually occupied by subtenants. A master lease by itself does not establish this condition.
Annual value and start of deferment
During deferment, annual value is based on individual building-unit annual values. The guide states continuation for one year from satisfying criteria, then annual review. For new applications, deferment starts from transfer or vacation as applicable, but cannot start earlier than 12 months before criteria are satisfied.
Expiry, renewal and resumption
Deferment ends at expiry of the qualifying tenancies. Renewals for at least a year can extend it by the renewed tenancy period. IRAS resumes 5%-of-land-value assessment when criteria are no longer met or not met over a reasonable time, there is evidence of a redevelopment decision, or demolition begins.
Application evidence
Submit the deferment application and details of every tenancy meeting the minimum criteria. The source gives the IRAS forms path: Quick Links → Forms → Property → Vacant Land or Development Site → section 2(6)(b) deferment form. Queries go to Property Tax Division via IRAS Contact Us. The form and tenancy evidence support an application; qualifying lease facts are still necessary.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗