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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 →

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

Posted in General, Property Market / Real Estate

Tagged DC Rate, Development Charge (DC)

Act now to prevent a housing bubble

Posted on 31 Aug 2009 | Comments Off

Banks should tighten lending terms to head off possible mortgage defaults

Some see a striking resemblance between the 2002 US housing boom and Singapore’s real estate rally now.

IN JANUARY, as the global financial storm lashed Singapore shores, fears took hold that large numbers of cash-strapped home owners might default on their monthly mortgage instalments, as businesses went belly-up and jobs were lost.

DBS Bank went out of its way to calm the jitters by offering to resurrect the interest-only payment scheme to allow borrowers to make only interest payments on their home loans, to give them breathing space to sort out their finances.

Only months later, in a surprise to many, the tide turned and there was a huge revival in the residential market. The gloom lifted as confidence grew and buyers rushed back to snap up properties – despite the stress that continued to be felt in the corporate sector.

The statistics are impressive. In the second quarter, 10,184 HDB resale flats changed hands – up from 6,446 units in the first quarter and 7,763 units in the same quarter last year. Continue reading →