{"id":104527,"date":"2019-03-01T11:22:38","date_gmt":"2019-03-01T04:22:38","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-homes-fell-5-5\/"},"modified":"2019-03-01T12:03:15","modified_gmt":"2019-03-01T05:03:15","slug":"development-charges-for-non-landed-homes-fell-5-5","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-homes-fell-5-5\/","title":{"rendered":"Development charges for non-landed homes fell 5.5%"},"content":{"rendered":"


\n The decline in DC rates comes as no surprise following the implementation of new property curbs in July.
\nThe development charge (DC) rates for non-landed residential properties fell by 5.5 percent on average, following a slowdown in residential land activity.
\nThe drop in DC rates for non-landed homes was the first since March 2016, when DC rates declined by 0.9 percent and was the strongest fall since March 2009, when DC rates plunged 15.3 percent, noted Cushman & Wakefield\u2019s senior director and head of research, Christine Li.
\nShe noted that the decline came as no surprise given that developers have taken a cautious stance in acquiring residential collective sales and government land sales sites since the government implemented new property curbs in July.
\nGet more details on the property market outlook for 2019 here
\n\u201cSince the fresh property cooling measures were implemented in July 2018, developers\u2019 perceived risk-reward ratio on residential deals has shifted, resulting in waning investment appetite,\u201d said Tricia Song, head of research for Singapore at Colliers International.
\nIn fact, a JLL study showed that not a single residential collective sale was concluded during the six months ending-February 2019, \u201cwhile residential (ex-EC) government land sale sites (GLS) for which tender closed during this period generally attracted fewer bids (up to seven) compared to those closed in the six months prior (they attracted up to 10 bids)\u201d.
\nMoreover, bids for residential sites have also been more cautious, said Tay Huey Ying, head of research and consultancy at JLL Singapore.
\nThe residential site at Kampong Java Road, for instance, attracted a top bid of $418.38 million ($1,192 psf ppr) during the close of its tender in January, while several collective sale sites that were sold before the July cooling measures registered higher unit land prices.
\nThese include Makeway View, which went for $1,626 psf ppr in March 2018, Dunearn Gardens at $1,914 in April 2018 and Chancery Court at $1,610 in May 2018.
\n\u201cWith the reduction of DC rates, developers will get a temporary reprieve if they were to consider replenishing their landbanks over the next six months. However, this in our view might not be significant enough to offset the higher acquisition costs faced by developers as a result of the latest round of cooling measures,\u201d said Li.
\n\u201cThe fact that the average unit sizes are also increased from 70 sq m to 85 sq m for homes outside central area will also cripple developer\u2019s ability to increase selling prices over the medium term.\u201d
\nAs such, residential en bloc hopefuls may have to lower their asking prices to attract serious buyers in today\u2019s increasingly challenging residential market, she added.
\nTo know more about the property hotspots for 2019, check out\u00a0PropertyGuru AreaInsider
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Development charges for non-landed homes fell 5.5%<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The decline in DC rates comes as no surprise following the implementation of new property...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-104527","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-rbV","jetpack-related-posts":[{"id":114644,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-homes-trimmed-0-2-on-average\/","url_meta":{"origin":104527,"position":0},"title":"Development charges for non-landed homes trimmed 0.2% on average","date":"March 2, 2020","format":false,"excerpt":"\r The cut follows a 0.3% and 5.5% decrease in DC rates during the September 2019 and March 2019 review.\u00a0 The development charge (DC) rates for non-landed residential use have been slashed by 0.2% on average, on the back of a muted Government Land Sales (GLS) bidding and slower economic\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":24589,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-residential-sites-up-2-7\/","url_meta":{"origin":104527,"position":1},"title":"Development charges for non-landed residential sites up 2.7%","date":"September 1, 2016","format":false,"excerpt":"\r The upward revision in DC rates for non-landed residential sites may have been fuelled by the bullish bids for several GLS sites in the past six months, said analysts. The development charge (DC) rates for non-landed residential sites have been raised by an average of 2.7 percent for the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":118431,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mnd-revises-development-charge-rates\/","url_meta":{"origin":104527,"position":2},"title":"MND revises Development Charge rates","date":"September 1, 2020","format":false,"excerpt":"\r Use Group C (Hotel\/Hospital) registered the greatest overall declines in DC rates at 7.8% on average as it is the hardest hit sector by the COVID-19 pandemic. The Ministry of National Development has decreased the Development Charge (DC) rate for commercial, non-residential, hotel\/hospital and industrial use groups for the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":121769,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rates-up-for-residential-use-slashed-for-commercial-use\/","url_meta":{"origin":104527,"position":3},"title":"Development charge rates up for residential use, slashed for commercial use","date":"September 1, 2021","format":false,"excerpt":"\r Development charge rates up for residential use, slashed for commercial useFor landed residential use, the DC rates have increased by 6.3% on average, while the DC rates for commercial use have been slashed by the Government for the third consecutive time, by\u00a00.7% on average. Photo: 2 Cluny Hill Bungalow\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/09\/2-cluny-hill-gcb-crop.png?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":65390,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-housing-up-13-8\/","url_meta":{"origin":104527,"position":4},"title":"Development charges for non-landed housing up 13.8%","date":"September 4, 2017","format":false,"excerpt":"\r There has been a spike in demand for residential development land in Singapore, contributing to the hike in development charges. In consultation with the chief valuer, the development charge (DC) rates for landed residential, non-landed housing and commercial space have been revised upwards for the period of 1 September\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8219,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-cuts-development-charges-amid-soft-market\/","url_meta":{"origin":104527,"position":5},"title":"Govt cuts development charges amid soft market","date":"February 29, 2016","format":false,"excerpt":"\r \u00a0 UPDATED: The development charge (DC) rates paid by developers to enhance a site or build bigger projects on them were trimmed by the Ministry of National Development (MND) for the period of 1 March to 31 August 2016. The review is carried out on a half-yearly basis, with\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/104527"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=104527"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/104527\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=104527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=104527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=104527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}