The development charges has been revised for the period of 1st March 2011 to 31st August 2011.
The DC rates for Group A (Commercial) have increased by an average of 13%, with the largest increase of 29% in Sector 9 (Peck Seah Street / Maxwell Road / Anson Road area).
For Group B1 {Residential (landed)} the DC rates have on average increased by 18%, with the largest increase of 25% in Sector 108 (Holland Road / Sixth Avenue / Eng Neo Avenue / Adam Road / Farrer Road area).
The DC rates for Group B2 {Residential (non-landed)} have also increased by an average of 11%. The largest increase is 17% in Sector 100 (Upper Serangoon Road / Punggol Area).
For Group C (Hotel/Hospital), the DC rates have an average increase of 27% with the largest increase of 39% in Sectors 1, 2 & 7 (Church Street / Boon Tat Street / Cecil Street / Robinson Road / Shenton Way area), Sectors 19, 20 & 21 (Clemenceau Avenue / Havelock Road area), Sector 41 (Somerset Road area) and Sector 43 (Tanglin Road / Cuscaden Road area).
The DC rates for Group D (Industrial / Warehousing Use) have increased by 8% on average, with the largest increase of 20% in Sector 114 (Tuas / Jurong / Woodlands area).
What it means:
Developers will have to pay a higher charge as compared to the previous term. It becomes more expensive for developers to develop new projects in this instance and should there be any, the cost will be passed down to consumers.
With those revised groups, you can see where most of the Real Estate activities are intensifying in. Both commercial and industrial has seem to caught our Government’s interest.
