Development charge rates raised 1.7% on average for commercial use, trimmed 0.3% for non-landed residential use

Development charge rates raised 1.7% on average for commercial use, trimmed 0.3% for non-landed residential use

The government has raised development charge (DC) rates for commercial use by 1.7 per cent on average for the period Sept 1, 2019 to Feb 29, 2020. This is a slower rate of increase than the 9.8 per cent hike for the last revision that took effect March 1 this year.

DC rates for non-landed residential use have been trimmed by 0.3 per cent on average. This follows the 5.5 per cent cut in March.

Developers pay DC for the right to enhance the use of some sites or to build bigger projects on them.

DC rates remain unchanged for all other uses.

The Ministry of National Development (MND) revises the rates on March 1 and Sept 1 each year, in consultation with the taxman’s chief valuer (CV).

DC rates are based on CV’s assessment of land values and take into consideration recent land sales. They are stated according to use groups across 118 geographical sectors in Singapore.

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