Development charge rates cut for non-landed residential use
The development charge (DC) rates for non-landed residential use have been cut by an average of 5.5 per cent - a stark contrast to the 9.8 per cent rise last September.
Developers pay DCs for the right to enhance the use of some sites or to build bigger projects on them.
DC rates for commercial use have been increased by 9.8 per cent on average, after being hiked 8.3 per cent last September.
Rates for the use group that includes hotels and hospitals have been raised 45.6 per cent on average, following last September's 11.8 per cent rise.
The new rates are for March 1 to Aug 31.
DC rates remain unchanged for landed residential, industrial and place of worship/civic and community institution uses, as well as for three other land-use groups, which include nature reserves, agricultural land, and drains, roads, railways and cemeteries.
The Ministry of National Development revises the rates on March 1 and Sept 1 each year, in consultation with the taxman's chief valuer, who assess land values and considers recent sales. They are stated according to use groups across 118 geographical sectors in Singapore.
For non-landed residential use, DC rates have been reduced in 94 out of 118 geographical sectors by between 4 per cent and 13 per cent. Rates have been left untouched for the remaining 24 sectors.
Meanwhile, DC rates for hotel and hospital use have been raised in 116 sectors by between 7 per cent and 74 per cent. There is no change for the remaining two sectors.
And for commercial use, DC rates have gone up in 116 sectors by 3 per cent to 17 per cent, with no change for the remaining two sectors.
Mr Desmond Sim, CBRE's head of research for Singapore and Southeast Asia, said that DC rate revisions usually reflect how the real estate market has been performing.
"Not surprisingly, increased activities in the office and hotel markets have resulted in upward revisions in the DC rates, while a slowdown in residential land activity has resulted in lowered DC rates for some key areas, " he added.