Development charge rates raised by 9.8% for non-landed residential land use
SINGAPORE - The development charge (DC) rates for redeveloping land have gone up for commercial and industrial sites, as well as plots slated for non-landed private homes, and hotels and hospitals.
Land zoned for non-landed residential use saw an average increase of 9.8 per cent, the Ministry of National Development (MND) said on Friday (Aug 31) - down sharply from the 22.8 per cent hike in March.
DC rates for commercial sites were raised by 8.3 per cent on average, up from a 2.7 per cent increase previously, with the average rate for hotels and hospitals up by 11.8 per cent and the average increase for industrial sites coming in at 2.1 per cent after staying flat in the previous revision exercise.
The latest change comes nearly two months after surprise property cooling measures kicked in on July 6, and the new rates will apply from Sept 1, 2018 to Feb 28, 2019.
The MND revises DC rates twice a year, on March 1 and Sept 1, for land use categories across 118 sectors island-wide.
The rates, based on an assessment of land values that takes into account recent market deals, are paid by developers for the right to enhance the use of some sites or to build bigger projects there.
The rates have been kept unchanged for landed homes, civic and community institutions, and three other land use groups, which include nature reserves, agricultural land, drains, roads, railways and cemeteries.