Singapore has lowered development charges (DC) for non-landed residential projects, with the biggest decrease seen in the north-eastern region.
In a news release on Friday (Feb 27), the Ministry of National Development (MND) said that the DC rates have fallen on average by 3 per cent for land for non-landed residential property. Seventy-three out of 118 sectors saw decreases ranging from 2 per cent to 13 per cent. There is no change to the DC rates for the remaining 45 sectors.
The largest decrease of 13 per cent was for Sector 100 – which covers the Tampines Road / Hougang / Punggol / Sengkang area, said MND.
The DC is a tax that is levied when planning permission is granted to carry out development projects that increase the value of the land – for example, by rezoning the site or increasing the plot ratio. The rates are reviewed every six months – on Mar 1 and Sep 1 – in consultation with the chief valuer at the Inland Revenue Authority of Singapore (IRAS).
The change in DC reflects changes in the value of land in the area.
MND said DC rates remain unchanged for other use groups such as B1 (Landed residential), C (Hotel / Hospital), D (Industry) and E (Place of Worship/Civic and Community Institution).
As for use group A, which is for commercial property, the average increase is 2 per cent, with the biggest rise of 9 per cent applying to several areas on the edge of the central business district and Orchard Road shopping belt.
These include the Maxwell Road / Telok Ayer Street / Hoe Chiang Road / Keppel Road area, and the Eu Tong Sen Street / Park Crescent / Upper Pickering Street / Upper Cross Street / China Street / Pearl’s Hill Terrace /Outram Park / Chin Swee Road areas.
Singapore’s office rents have risen strongly over the past year due to a shortage of new office space. But prices of private residential homes have fallen amid Government measures to cool the sector and a looming oversupply of condominium units.
Source : Channel NewsAsia – 27 Feb 2015