{"id":81478,"date":"2018-03-01T10:31:45","date_gmt":"2018-03-01T03:31:45","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rate-hike-wont-dampen-collective-sale-fever\/"},"modified":"2018-03-01T11:05:18","modified_gmt":"2018-03-01T04:05:18","slug":"development-charge-rate-hike-wont-dampen-collective-sale-fever","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rate-hike-wont-dampen-collective-sale-fever\/","title":{"rendered":"Development charge rate hike won't dampen collective sale fever"},"content":{"rendered":"


\nThe development charges for non-landed homes is up by 22.8 percent.
\nThe 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 both state tenders and en bloc sales.
\nThe DC rate hike, which ranged from 12 percent to 38 percent, will be felt across 116 out of 118 sectors, with sectors 19, 23 and 34 witnessing the biggest increase of 38 percent.
\nSEE ALSO: Buyer\u2019s stamp duty hike unlikely to hinder housing market recovery
\n\u201cThe latest round of DC revision is a clear reflection of the escalating residential land prices paid by land-starved developers at both state tenders and collective sales,\u201d said Christine Li, research director at Cushman & Wakefield.
\n\u201cThe steep increase in Sectors 23 and 34 is most likely due to the near-record price paid (of $1,722 psf ppr) for the Handy Road Government Land Sale site last month,\u201d she said.
\nLi noted that the high-profile en bloc sale sites awarded like Pearl Bank Apartments near Chinatown and Royalville in Bukit Timah also resulted in DC rate hikes for sectors 109 and 18, at 35 percent and 31.6 percent respectively, reported the Business Times.
\nNonetheless, Li does not expect the DC rate revisions to dampen the current en bloc sales fever as developers have built up a huge war chest of capital over the past few years.
\nDevelopers, however, may \u201cmoderate their bids for sites which have a low development baseline and are accordingly subjected to high development charges, in order to maximise their gross floor area under the Master Plan\u201d, she explained.
\nTay Huey Ying, Singapore research and consultancy head at JLL, believes the sharp increase in DC rates may \u201cwiden the buyer and seller price expectations for sites that attract significant development charge levy and this could lead to more sites experiencing protracted sales period\u201d.
\nMeanwhile, the DC rates for commercial use also increased by an average of 2.7 percent, with 41 out of the 118 sectors witnessing an increase of between four percent and 16 percent.
\nEffective from 1 March, the new rates will apply to cases that are granted Provisional Permission (PP) or second and subsequent extensions to the PP on or after the effective date, said the Urban Redevelopment Authority in a statement.
\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 charge rate hike won’t dampen collective sale fever<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The development charges for non-landed homes is up by 22.8 percent. The Ministry of National...<\/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-81478","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-lca","jetpack-related-posts":[{"id":121769,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-rates-up-for-residential-use-slashed-for-commercial-use\/","url_meta":{"origin":81478,"position":0},"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":97138,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charge-for-private-condos-hiked-by-up-to-33\/","url_meta":{"origin":81478,"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":81478,"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":81478,"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":104527,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-homes-fell-5-5\/","url_meta":{"origin":81478,"position":4},"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":66372,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-development-charges-to-affect-en-bloc-deals\/","url_meta":{"origin":81478,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/81478"}],"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=81478"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/81478\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=81478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=81478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=81478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}