{"id":65390,"date":"2017-09-04T11:32:55","date_gmt":"2017-09-04T04:32:55","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-housing-up-13-8\/"},"modified":"2017-09-04T11:41:54","modified_gmt":"2017-09-04T04:41:54","slug":"development-charges-for-non-landed-housing-up-13-8","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-housing-up-13-8\/","title":{"rendered":"Development charges for non-landed housing up 13.8%"},"content":{"rendered":"


\nThere has been a spike in demand for residential development land in Singapore, contributing to the hike in development charges.
\nIn 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 2017 to 28 February 2018, the Ministry of National Development said last Friday (31 August).
\nDC is a tax that developers need to pay when they want to build projects that intensify land value, such as increasing the plot ratio and rezoning the site for other uses.
\nIn particular, the DC rates for non-landed residential properties (Use Group B2) were raised by 13.8 percent on average. 116 out of 118 geographical sectors recorded increases of six percent to 29 percent, with sector 100 consisting of Tampines Road, Hougang, Punggol and Sengkang seeing the biggest increase. On the other hand, the rates for the two remaining sectors were unchanged.
\nAccording to JLL\u2019s research head Tay Huey Ying, the 13.8 percent hike was the steepest upward adjustment for the non-landed residential segment since the first DC rate increase occurred in September 2016.
\n\u201cThis is within our expectations as there has been a spike in demand for residential development land. Year-to-date, over $7 billion worth of residential development sites in the public and private domains have changed hands, surpassing the $4.32 billion amassed for the whole of 2016.\u201d One factor behind this is the active en bloc market, which accounted for nearly two-fifths of total sales so far this year.
\nSEE ALSO: Why the hype around properties with en-bloc potential?
\nFor landed residential (Use Group B1), DC rates have increased by 0.3 percent on average. Five out of 118 sectors have witnessed increases of seven to nine percent, while that for the remaining 113 sectors were unchanged. The largest gain was recorded by sector 100, which comprises Tampines Road, Hougang, Punggol and Sengkang.
\nMeanwhile, the DC rates for commercial space (Use Group A) climbed by 3.8 percent on average. 59 out of the 118 sectors have posted upticks of between three percent and 11 percent, with sectors 101, 113, 114 and 115 posting the largest growths. These areas include Paya Lebar Road, Jurong West and Woodlands.
\nTay believes that the higher DC rates reflects the chief valuer\u2019s optimistic outlook for the Singapore property market in the next six months.
\n\u201c(It) gives a strong hint of what can be expected for the growth areas of Paya Lebar, Jurong Lake District, Jurong Innovation District, Woodlands North Coast and Kallang River\/Kallang,\u201d she noted.
\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 housing up 13.8%<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

There has been a spike in demand for residential development land in Singapore, contributing to...<\/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-65390","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-h0G","jetpack-related-posts":[{"id":24589,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-residential-sites-up-2-7\/","url_meta":{"origin":65390,"position":0},"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":66372,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-development-charges-to-affect-en-bloc-deals\/","url_meta":{"origin":65390,"position":1},"title":"New development charges to affect en bloc deals","date":"September 14, 2017","format":false,"excerpt":"\r The new DC rates are expected to lead to higher breakeven prices for developers. DBS expects the recent hike in development charge (DC) rates for condominiums to affect developers\u2019 profitability as breakeven prices may increase by up to four percent, reported Singapore Business Review. It noted that while most\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":65390,"position":2},"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":104527,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-homes-fell-5-5\/","url_meta":{"origin":65390,"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":121769,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rates-up-for-residential-use-slashed-for-commercial-use\/","url_meta":{"origin":65390,"position":4},"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":114644,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-homes-trimmed-0-2-on-average\/","url_meta":{"origin":65390,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/65390"}],"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=65390"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/65390\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=65390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=65390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=65390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}