Tag: Development Charges

URA Development Charges Revised – Commercial and Industrial Upwards

URA has just revised the development charges for the following groups:-

The DC rates for Group A (Commercial) have increased by an average of 22%, with the largest increase of 32% in Sector 101 (Paya Lebar Central: Paya Lebar / Eunos / Macpherson Road area).

For Group B1 {Residential (landed)}, the DC rates have on average increased by 17%, with the largest increase of 20% in 22 out of 118 geographical sectors.

The DC rates for Group B2 {Residential (non-landed)} have also increased by an average of 12%. The largest increase is 39% in Sector 57 (Serangoon Road / Whampoa / Bendemeer Road area).

For Group C (Hotel/Hospital), the DC rates have an average increase of 7% with the largest increase of 9% in Sectors 1, 2 & 7(Cecil Street / Boon Tat Street / Robinson Road area), and Sectors 19, 20 & 21 (Havelock Road / Clemenceau Avenue / New Bridge / South Bridge Road / Upper Pickering Street area).

The DC rates for Group D (Industrial / Warehousing Use) has increased by 31% on average, with the largest increase of 55% in Sector 114 (Tuas / Pioneer Road / Jurong / Sungei Kadut / Mandai Estate / Woodlands area) and Sector 115 (Woodlands / Sembawang / Yishun area).

The rest remains unchange.

Official press release can be found here.

There’s a lot of activities going on in the commercial/light industrial real estate scene including both sales and rental market. Would we see another spike in their prices?

MND Lowers Development Charge (DC) by 4% to 15%

Singapore government board Ministry of National Development (MND) has dropped its development charge for the following sites with this current revision:-

  1. Reduction of 15% of DC for non-landed residential use
  2. Reduction of 10% of DC for hotel and hospital use
  3. Reduction of 4% of DC for commercial use
  4. No changes to landed residential and industrial use.

The actual revision and press release can be found in URA’s Press Release on 27th February 2009.

MND reviews its DC rates after consulting with the Chief Valuer, taking into account of the current market values.

What is Development Charge? The Actual Principle of DC

Land value can be enhanced with the Government approve its change of rezoning or adjustment of its plot ratio to a higher value. Development charge actually allows the government to tax on the profit gained from the enhancement of the land upon approval of the proposed plan. Continue reading “MND Lowers Development Charge (DC) by 4% to 15%” →