Friday, March 1, 2013

Govt revises development charge rates


Channelnewsasia.com
Posted: 28 February 2013 1921 hrs

SINGAPORE: The government has revised the development charge (DC) rates, with the steepest increase in the commercial and industrial sectors.

The revised DC rates will take effect from 1 March 2013.

A development charge is a levy that is payable by the developer when a property site is developed into a more valuable project.

The National Development Ministry announced the latest DC revision on Thursday. It said four sectors in the industrial segment will see increases of between 14 and 26 per cent.

The most significant increase will be in the Woodlands, Senoko, Sembawang, and Yishun sectors, at 26 per cent.

For the commercial sector, the average increase will be 24 per cent.

Areas seeing the highest rise of 39 per cent include Yishun, Sembawang, Woodlands, Choa Chu Kang and Jurong West.

Mr Desmond Sim, associate director of CBRE Research, told Channel NewsAsia the sharp increase could be due to the prospective development of the North Coast Innovation Corridor, a new cluster that promises to help Singapore become a global commercial hub.

Meanwhile, DC rates in the hotel & hospital segment will go up by an average of 26 per cent.

DC rates for non-landed homes remain unchanged, after the one per cent increase in the last revision in August 2012.

However, the levy for landed homes will increase by an average of four per cent in some areas.

The largest increase of 15 per cent is seen mostly in areas located in the East.

These include Tanjong Katong, Joo Chiat, Telok Kurau, Upper East Coast, Siglap, Bedok and Marine Parade, among others.

Analysts said the relatively smaller increase in the residential segment could be due to the government's wait-and-see approach, following the introduction of measures to cool the residential property market.

Mr Desmond Sim said: "There have been some increases (especially in the East Coast area, Upper Serangoon and West Coast). But those are basically (areas) where transactional activities are higher, and maybe to anticipate the new MRT lines like the Cross Island Line and the Eastern Region Line.

"For the past six months, there have been intense activities of land buying. But I think instead of being a knee-jerk reaction to the increases, the state is taking a step back to look at how much more impact would the cooling measures have on land bidding."


Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)
Email: marshe_inc@yahoo.com.sg

Posted: 28 February 2013 1921 hrs

SINGAPORE: The government has revised the development charge (DC) rates, with the steepest increase in the commercial and industrial sectors.

The revised DC rates will take effect from 1 March 2013.

A development charge is a levy that is payable by the developer when a property site is developed into a more valuable project.

The National Development Ministry announced the latest DC revision on Thursday. It said four sectors in the industrial segment will see increases of between 14 and 26 per cent.

The most significant increase will be in the Woodlands, Senoko, Sembawang, and Yishun sectors, at 26 per cent.

For the commercial sector, the average increase will be 24 per cent.

Areas seeing the highest rise of 39 per cent include Yishun, Sembawang, Woodlands, Choa Chu Kang and Jurong West.

Mr Desmond Sim, associate director of CBRE Research, told Channel NewsAsia the sharp increase could be due to the prospective development of the North Coast Innovation Corridor, a new cluster that promises to help Singapore become a global commercial hub.

Meanwhile, DC rates in the hotel & hospital segment will go up by an average of 26 per cent.

DC rates for non-landed homes remain unchanged, after the one per cent increase in the last revision in August 2012.

However, the levy for landed homes will increase by an average of four per cent in some areas.

The largest increase of 15 per cent is seen mostly in areas located in the East.

These include Tanjong Katong, Joo Chiat, Telok Kurau, Upper East Coast, Siglap, Bedok and Marine Parade, among others.

Analysts said the relatively smaller increase in the residential segment could be due to the government's wait-and-see approach, following the introduction of measures to cool the residential property market.

Mr Desmond Sim said: "There have been some increases (especially in the East Coast area, Upper Serangoon and West Coast). But those are basically (areas) where transactional activities are higher, and maybe to anticipate the new MRT lines like the Cross Island Line and the Eastern Region Line.

"For the past six months, there have been intense activities of land buying. But I think instead of being a knee-jerk reaction to the increases, the state is taking a step back to look at how much more impact would the cooling measures have on land bidding."


Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)
Email: marshe_inc@yahoo.com.sg

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