{"id":24589,"date":"2016-09-01T11:06:15","date_gmt":"2016-09-01T04:06:15","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-residential-sites-up-2-7\/"},"modified":"2016-09-01T11:07:14","modified_gmt":"2016-09-01T04:07:14","slug":"development-charges-for-non-landed-residential-sites-up-2-7","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-residential-sites-up-2-7\/","title":{"rendered":"Development charges for non-landed residential sites up 2.7%"},"content":{"rendered":"


\nThe 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.
\nThe development charge (DC) rates for non-landed residential sites have been raised by an average of 2.7 percent for the period of 1 September 2016 to 28 February next year following two straight years of contraction, said the Ministry of National Development.
\nAccording to the Urban Redevelopment Authority (URA), the DC rate is a tax levied when planning permission is granted to carry out development projects that increase the value of the land, such as rezoning to a higher value use and increasing the plot ratio.
\nNotably, 39 of the 118 geographical sectors saw DC rates increase by five to 12 percent, while rates remained unchanged for the other 79 sectors. Sector 48, which includes River Valley Road, Kim Yam Road, Martin Place and Mohamed Sultan Road, posted the highest increase of 12 percent.
\nDesmond Sim, CBRE Research Head for Singapore and South East Asia, said DC rate increases were \u201cfocussed predominantly in the CBD, probably because infrastructure is falling into place and as such, the Chief Valuer would like to maintain the premium for properties in the CBD\u201d.
\n\u201cThe Chief Valuer had probably given due regard to the improving market sentiment in the non-landed residential segment, reflected in the 60 percent quarter-on-quarter increase in overall sales volume in Q2 2016 and moderate decline in the (URA\u2019s) all-residential private property index for three successive quarters since Q4 2015,\u201d said Tay Huey Ying, Research Head at JLL Singapore.
\nShe noted that the fairly aggressive upward revision may have been fuelled by the keen and bullish bids for several GLS sites in the six months from March to August 2016.
\nThe Martin Place site, for instance, drew a total of 13 bids \u201cwith the winning price of $1,239 psf per plot ratio representing the highest unit land price ever received for a pure residential GLS site\u201d, said Tay.
\nBased on JLL\u2019s analysis, the transacted price was 42 percent above the land price imputed by the sector\u2019s DC rate prior to the latest revision. Following this revision, the DC rate for this sector would better reflect market land value.
\nBut Tay was surprised that DC rates for landed residential sites were unchanged as this runs counter to market trends.
\nThe URA index shows that landed home prices have fallen by a total of 12.5 percent since Q4 2013, \u201cyet the DC rates for this use group have been left unchanged at March 2014\u2019s rates\u201d, she said.
\nThe DC rates are reviewed every six months, in consultation with the Chief Valuer and the Inland Revenue Authority of Singapore (IRAS).
\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 residential sites up 2.7%<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The upward revision in DC rates for non-landed residential sites may have been fuelled by...<\/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-24589","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\/p75ss1-6oB","jetpack-related-posts":[{"id":81478,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rate-hike-wont-dampen-collective-sale-fever\/","url_meta":{"origin":24589,"position":0},"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":[]},{"id":121769,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rates-up-for-residential-use-slashed-for-commercial-use\/","url_meta":{"origin":24589,"position":1},"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":24589,"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":104527,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-homes-fell-5-5\/","url_meta":{"origin":24589,"position":3},"title":"Development charges for non-landed homes fell 5.5%","date":"March 1, 2019","format":false,"excerpt":"\r The decline in DC rates comes as no surprise following the implementation of new property curbs in July. The development charge (DC) rates for non-landed residential properties fell by 5.5 percent on average, following a slowdown in residential land activity. The drop in DC rates for non-landed homes was\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":46008,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rates-increased-for-three-use-groups\/","url_meta":{"origin":24589,"position":4},"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. 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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":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/24589"}],"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=24589"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/24589\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=24589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=24589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=24589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}