SINGAPORE - Development charges (DC) were revised upwards for some segments of the real estate market amid improved sentiment in the property market.
The charges are levied by the Government for enhancing the use of some sites, or building bigger projects on them. They are revised on a half yearly basis by the Ministry of National Development (MND), in consultation with the Chief Valuer.
MND said on Tuesday (Feb 28) DC rates for three use groups - commercial, non-landed residential and hotel or hospital - have gone up, while DC rates for industry use have decreased. However, the development charges will remain unchanged for landed residential, place of worship or civic and community institution and other use groups.
The DC rates for commercial use rose by 1.3 per cent on average, with the largest increase of 29 per cent in the Shenton Way/Raffles Quay/ Marina Bay Financial centre area.
Condo DC rates climbed an average of 4 per cent, with the sharpest increase of 17 per cent for two sectors covering areas including Jalan Besar, Serangoon Road and Balestier Road.
MND said DC rates for hotel or hospital went up by 2.6 per cent on average, with the steepest increase of 19 per cent in several sectors including Tampines Road, Upper Paya Lebar, Ang Mo Kio Avenue 3 and 6, Lornie Road, Yuan Ching Road.
Meanwhile, DC rates for industry use were slashed by 3.7 per cent on average. The largest decline of 14 per cent was seen in two sectors comprising areas such as Tampines Road, Punggol, Sengkang, Boon Lay, Jurong West and Tuas.
The revised slate will apply for the period March 1 to Aug 31 this year.