{"id":121769,"date":"2021-09-01T02:56:11","date_gmt":"2021-08-31T19:56:11","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rates-up-for-residential-use-slashed-for-commercial-use\/"},"modified":"2021-09-01T11:10:28","modified_gmt":"2021-09-01T04:10:28","slug":"development-charge-rates-up-for-residential-use-slashed-for-commercial-use","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rates-up-for-residential-use-slashed-for-commercial-use\/","title":{"rendered":"Development charge rates up for residential use, slashed for commercial use"},"content":{"rendered":"


\nDevelopment 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
\nThe Government has raised the development charge (DC) rates for landed and non-landed residential use groups for the half-year period starting 1 September, amid the private housing market\u2019s healthy performance.
\nFor landed residential use, the DC rates have increased by 6.3% on average, or the \u201chighest increase since September 2013, when DC rates were raised by 6.8%\u201d, said Tricia Song, Head of Research for Southeast Asia at CBRE.
\nOf the 118 sectors, 116 saw the DC rates increase by 4% to 18%, while rates for the remaining two sectors were unchanged.
\nThe largest hike of 18.3% came from Sector 67 (Cluny Road\/ Napier Road\/ Tanglin Road\/ Anderson Road\/ Stevens Road\/ Dalvey Road).
\n\u201cThis increase might be on the back of the landmark GCB deal at 2 Cluny Hill,\u201d said Song.
\nIn April, a 14,845 sq ft GCB at 2 Cluny Hill was sold for $63.70 million, which works out to a record price of $4,291 per sq ft (psf). \u201cThe buyer is said to be a Singaporean entrepreneur from the tech sector in his early 30s,\u201d added Song.
\nDC rates for non-landed residential use was also raised by an average of 10.9%, the highest upward revision since March 2018, when DC rates for such use were raised by 22.8%. Out of the 118 sectors, 116 registered a hike of between 2% and 19%.
\nThe largest hike applies to Sector 16 (Cantonment Road\/ Eu Tong Sen Street\/ Cross Street\/ Chinatown Area\/ Duxton Area\/ Peck Seah Street\/ Kee Seng Street) and Sector 107 (Lentor Avenue\/ Springleaf Area\/ Upper Thomson Road\/ Upper Peirce Reservoir\/ Pan-Island Expressway\/ Lornie Road\/ Marymount Road\/ Ang Mo Kio Avenue 6).
\nWong Xian Yang, Head of Research, Singapore at Cushman & Wakefield attributed the significant increases in these sectors to the sale of Government Land Sale (GLS) sites and sites from the collective sales market.
\n\u201cIn DC Sector 107, the private housing site at Ang Mo Kio Avenue 1 has drawn the highest bid of $381.4 million or nearly $1,118 psf ppr in a state tender that closed in May 2021. In July 2021, the Lentor Central site attracted a top bid of $784.1 million or $1,204 psf ppr,\u201d he said.
\nMeanwhile, the DC rates for commercial use have been slashed by the Government for the third consecutive time.
\nHowever, the rate of decline was slower at an average of 0.7%, compared to the 1.5% reduction seen during the previous revision.
\n\u201cWhile this reflects still challenging operating conditions in the broad retail and office markets, a recovery could be on the cards as seen by the declining rate of decrease,\u201d said Wong.
\n\u00a0
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email:\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Development charge rates up for residential use, slashed for commercial use<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Development charge rates up for residential use, slashed for commercial useFor landed residential use, the...<\/p>\n","protected":false},"author":1,"featured_media":121770,"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-121769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/09\/2-cluny-hill-gcb-crop.png?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vG1","jetpack-related-posts":[{"id":46008,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rates-increased-for-three-use-groups\/","url_meta":{"origin":121769,"position":0},"title":"Development charge rates increased for three use groups","date":"February 28, 2017","format":false,"excerpt":"\r Development charges have been increased for non-landed residential, hotel \/ hospital and commercial uses. The Ministry of National Development has revised the development charge (DC) rates for three use groups for the period from 1 March to 31 August 2017. The DC is a tax levied when planning permission\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":121769,"position":1},"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":65390,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-housing-up-13-8\/","url_meta":{"origin":121769,"position":2},"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":114644,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-homes-trimmed-0-2-on-average\/","url_meta":{"origin":121769,"position":3},"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":121769,"position":4},"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":81478,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rate-hike-wont-dampen-collective-sale-fever\/","url_meta":{"origin":121769,"position":5},"title":"Development charge rate hike won't dampen collective sale fever","date":"March 1, 2018","format":false,"excerpt":"\r The development charges for non-landed homes is up by 22.8 percent. The Ministry of National Development, in consultation with the Chief Valuer, has raised the development charge (DC) rates for non-landed residential use by an average of 22.8 percent, on the back of aggressive land bidding by developers at\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\/121769"}],"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=121769"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/121769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/121770"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=121769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=121769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=121769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}