Tag Archives: Development Charge (DC)

Sharp cuts for commercial DC rates at Raffles Place; no change for landed residential, industrial uses

The government has again trimmed development charge (DC) rates for some sites – though the cuts on average are smaller than those made six months ago.

The changes were largely in line with market expectations. Some industry watchers felt that the continued cuts reflect the government’s caution in dealing with the property market when the economy remains shaky.

Developers have to pay DC for enhancing the use of some sites, and the market monitors these rates closely as they reflect land values. As part of a half-yearly review, the National Development Ministry (MND) announced yesterday a 2 per cent drop in the average DC rate for non-landed residential use. This is far below the 15 per cent chop in February.

MND also reduced the average DC rate for hotel and hospital use by 4 per cent. This is again smaller than the previous 10 per cent cut. Continue reading →

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 →