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Posted on 1 Sep 2009 | Comments Off

Modest cuts reflect cautious stance by Government, say consultants

THE Government has made some moderate cuts to the development charges which property developers pay for enhancing the use of non-landed residential sites, such as condominium sites.

This reflects the Government’s cautious outlook on the property market, some property consultants say, though one consultant queried any cut in the current red-hot residential market.

The rates for development charges fell by an average of 2 per cent, compared with a 15 per cent cut six months ago. These charges can vary from a few million dollars to tens of millions depending on the size of the project involved.

Some areas were unchanged while others were subject to bigger falls. The rate for Sentosa, for instance, got the biggest cut – 16.67 per cent – while there was a 10 per cent fall for the Balestier area. Continue reading →

Govt revises development charge rates selectively by between 2 & 4%

Posted on 31 Aug 2009 | Comments Off

The Singapore government will revise the development charge (DC) rates for some segments of the property sector to better reflect the current market values.

A development charge is a tax levied when a property site is developed into more valuable project allowing the government to have a share of the gains from the enhanced value.

In a statement, the Ministry of National Development (MND) said it will cut the development charge rate for non-landed residential properties by two per cent on average.

The change will take effect from September 1 and will last for six months.

Analysts said the reduction is conservative and is unlikely to affect the property market in a big way.

Property consultancy firm Colliers International noted that in revising the tax, the government has not been unduly influenced by the recent buying fever in the home sales market nor rising interest in development sites. Continue reading →