The development charge for non-landed residential sites for the next six months to February 2007 has been raised by a hefty 9%.This follows the half-yearly review of the rates by the Ministry of National Development.The development charge is paid by a developer to enhance a site’s use or to develop a bigger project on it.
The 9% jump in development charge for condo projects and apartments is the biggest followed by a 2% increase for commercial land and a 1% rise for landed residential properties.
The rates for hotel sites and land for other uses remain the same.
Nicholas Mak, Director of Research, Knight Frank, said, “For the non-landed residential sector, the increases in DC are also in the prime districts, in district 9,10, 11 as on the Sentosa island. Some of these increases, especially in the prime districts, the DCs have increased by 30 to as high as 37% and this is partly due to recent transactions from some of the recent collective sales.”
In terms of location, property consultants CB Richard Ellis says, the sectors that show the highest hikes of 32-38% are along the Orchard Road belt, while the rate for non-landed residential use in Sentosa is up 27%.
The revised rates come into effect on Friday.
Source: Channel NewsAsia, 31 August 2006