Development charge rates broadly lowered in weak real estate market

HDB blocks in Yishun.
HDB blocks in Yishun.ST PHOTO: JAMIE KOH

SINGAPORE - Development charges for large chunks of the real estate market were cut, in line with softening market conditions.

These charges are levied by the Government on owners of the land, or the person who applied for planning permission, for enhancing the use of some sites, or building bigger projects on them.

They are revised by the National Development Ministry half yearly; the revised slate apply for the period March 1 to Aug 31 this year.

DC rates for four use groups - commercial, non-landed residential, hotel or hospital and industry- fell, while DC rates were unchanged for five others, including landed residential and place of worship or civic and community institution.

DC rates for commercial fell by 2 per cent on average, with the largest decreases of 5 per cent of sectors including Raffles Place, Marina Bay Financial Centre, and Dhoby Ghaut.

Condo DC rates fell by 1 per cent on average, with the largest decrease of 4 per cent for sectors including Stevens Road and Bukit Timah, River Valley Road, Clementi Road, Jurong West Avenue 2 and Choa Chu Kang Way, and Sentosa.

DC rates for hotel or hospital use fell by 2 per cent on average, while those for industry use fell by 3 per cent on average.

The largest decrease of 16 per cent for industrial DC rates applies to Sector 114, which includes Boon Lay, Jurong West, Tuas and Sungei Kadut.