SINGAPORE (March 2): The government has increased the development charges (DC) rates for three segments of the real estate market amid improved sentiment in the property market. These are charges that are levied by the government for enhancing the use of some land sites, or building bigger developments on them. DC rates are revised on a half yearly basis by the Ministry of National Development (MND), in consultation with the Chief Valuer.
According to MND, DC rates for three use groups — commercial, non-landed residential and hotel or hospital — have gone up, while DC rates for industrial use have decreased. However, the development charges will remain unchanged for landed residential, place of worship or civic and community institution and other use groups.
The DC rates for commercial use rose 1.3% on average, with the largest increase of 29% was in the Shenton Way/Raffles Quay/ Marina Bay Financial Centre area. The DC rates for condominium went up by an average of 4%, with the sharpest increase of 17% for the Jalan Besar, Serangoon Road and Balestier Road areas.
It has also increased the DC rates for hotel or hospital by 2.6% on average, with the highest increase of 19% in several sectors including Tampines Road, Upper Paya Lebar, Ang Mo Kio Avenue 3 and 6, Lornie Road, Yuan Ching Road.
Meanwhile, DC rates for industrial use were slashed by 3.7% on average. According to MND, the revised rates will apply for the period March 1 to Aug 31 this year.