{"id":66372,"date":"2017-09-14T10:47:43","date_gmt":"2017-09-14T03:47:43","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-development-charges-to-affect-en-bloc-deals\/"},"modified":"2017-09-14T10:48:49","modified_gmt":"2017-09-14T03:48:49","slug":"new-development-charges-to-affect-en-bloc-deals","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-development-charges-to-affect-en-bloc-deals\/","title":{"rendered":"New development charges to affect en bloc deals"},"content":{"rendered":"


\nThe new DC rates are expected to lead to higher breakeven prices for developers.
\nDBS 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.
\nIt noted that while most of this year\u2019s en bloc transactions already priced in a potential six to 18 percent hike in property prices to break even, the new DC rates could add another one to three percentage point to the assumed increase in prices to break even.
\nSEE ALSO: Development charges for non-landed housing up 13.8%
\nThis comes as 116 of the 118 sectors have raised their rates by six to 29 percent, with Sector 100, which includes Hougang, Tampines Road, Sengkang and Punggol area, registering the biggest increase.
\nThe new DC rates would apply to cases that have been given provisional permission (PP) from 1 September.
\n\u201cWe believe the higher rates would especially impact the later en bloc transactions which have not been granted PP before 1 September 2017, especially those transacted in 2017, thus raising the cost of land acquisition for developers,\u201d said DBS analysts Rachel Tan and Derek Tan.
\n\u201cWe believe that developers for larger en bloc sites, especially those with more than 1,000 planned new residential units per site, such as Serangoon Ville, Eunosville and Rio Casa, might look to launch projects as early as possible, especially given the large quantum of units to be cleared.
\n\u201cAt this moment, there are uncertainties to take up where our estimated breakeven prices are at a c. 15 percent premium to the prevailing property prices in the respective areas.\u201d
\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…New development charges to affect en bloc deals<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The new DC rates are expected to lead to higher breakeven prices for developers. DBS...<\/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-66372","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-hgw","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":66372,"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":97138,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-for-private-condos-hiked-by-up-to-33\/","url_meta":{"origin":66372,"position":1},"title":"Development charge for private condos hiked by up to 33%","date":"September 3, 2018","format":false,"excerpt":"\r The development charge (DC) rate for landed housing in Singapore remains the same from 1 Sep 2018 to 28 Feb 2019, while that for non-landed residential was increased by 9.8 percent on average, said the Ministry of National Development (MND) on Friday (31 Aug). In particular, the DC rate\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":66372,"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":66372,"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":125166,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rates-up-for-residential-commercial-industrial-use-propertyguru-revenue-up-22-7-in-fy2021\/","url_meta":{"origin":66372,"position":4},"title":"Development charge rates up for residential, commercial, industrial use, PropertyGuru revenue up 22.7% in FY2021","date":"March 8, 2022","format":false,"excerpt":"\r 1st March to 7th March\u00a02022 The development charge (DC) rates for residential, commercial, and industrial use has been raised by the Ministry of National Development for the six months starting 1 March to 31 August. Meanwhile, PropertyGuru\u2019s revenue for FY2021 increased 22.7% to $100.7 million. \u00a0 1) Development charge\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/03\/singapore-skyline-hdb-condo.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":24589,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-residential-sites-up-2-7\/","url_meta":{"origin":66372,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/66372"}],"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=66372"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/66372\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=66372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=66372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=66372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}