Development charge rates cut for non-landed residential use, but raised for hotel, commercial uses

Chinatown and the skyline of Singapore's central business district seen in a photo taken on Feb 22, 2017.
Chinatown and the skyline of Singapore's central business district seen in a photo taken on Feb 22, 2017.ST PHOTO: LIM YAOHUI

SINGAPORE - The government has cut development charge (DC) rates for non-landed residential use by 5.5 per cent on average.

This contrasts with the 9.8 per cent rise in September last year.

Developers pay DC for the right to enhance the use of some sites or to build bigger projects on them.

DC rates for commercial use have been increased by 9.8 per cent on average, after being hiked 8.3 per cent in September last year. DC rates for the use group that includes hotels and hospitals have been raised 45.6 per cent on average, following the 11.8 per cent increase last September.

The latest DC rates are for the period March 1 to Aug 31.

The Ministry of National Development (MND) revises the rates on March 1 and Sept 1 each year, in consultation with the taxman's chief valuer.

MND said that DC rates remain unchanged for landed residential, industrial and place of worship/civic and community institution uses as well as for three other land-use groups, which include nature reserves, agricultural land, drains, roads, railways and cemeteries.

DC rates are based on the chief valuer's assessment of land values and take into consideration recent land sales. They are stated according to use groups across 118 geographical sectors in Singapore.

For non-landed residential use, DC rates have been reduced in 94 out of 118 geographical sectors by between 4 per cent and 13 per cent. Rates have been left untouched  for the remaining 24 sectors. The biggest drop of 13 per cent applies to the following sectors:

Sector 59 - Thomson Road, Pan-Island Expressway, Central Expressway, Mandalay Road, Irrawaddy Road

Sector 91 - Dunman Road, Tanjong Katong Road, East Coast Parkway, Fort Road, Mountbatten Road

Sector 93 - Geylang Road, Changi Road, Telok Kurau area, Marine Parade Road, Joo Chiat Road, East Coast Road, Haig Road

Sector 94 - Mountbatten Road, Joo Chiat Road, Marine Parade Road, East Coast Parkway, Tanjong Katong Road

Sector 104 - Marymount Road, Ang Mo Kio Avenue 3, Hougang Avenue 2, Tampines Road, Defu area, Lorong Ah Soo, Upper Paya Lebar Road, Bartley Road, Braddell Road.

MND said that for hotel/hospital use, DC rates were raised in 116 sectors by between 7 per cent and 74 per cent. There is no change to the DC rates for the remaining two sectors.

The biggest hike of 74 per cent applies to the following sectors:

Sector 25 - Selegie Road, Kirk Terrace, Niven Road

Sector 26 - Selegie Road, Rochor Canal Road, Bencoolen Street

Sector 28 - Victoria Street, Jalan Sultan, Beach Road, Ophir Road

Sector 29 - Rochor Canal Road, Victoria Street, Ophir Road

Sector 30 - Jalan Besar, Syed Alwi Road, Rochor Canal Road

Sector 32 - Serangoon Road, Bukit Timah Road, Tekka Lane, Race Course Road, Rangoon Road, Farrer Park Station Road, Birch Road

Sector 33 - Mackenzie Road, Bukit Timah Road

Sector 34 - Sophia Road, Upper Wilkie Road, Mackenzie Road, Niven Road, Kirk Terrace, Adis Road

For the commercial use group, DC rates were raised in 116 sectors by between 3 per cent and 17 per cent, with no change for the remaining two sectors. 

The largest increase of 17 per cent is for the following sectors:

Sector 15 - Outram Road, Eu Tong Sen Street

Sector 16 - Cantonment Road, Chinatown area, New Bridge Road, Upper Cross Street, Cross Street, Stanley Street, McCallum Street, Amoy Street, Erskine Road, South Bridge Road, Maxwell Road, Peck Seah Street, Gopeng Street, Tanjong Pagar Road

Sector 21 - New Bridge Road, Boat Quay, South Canal Road, South Bridge Road, Upper Pickering Street

Sector 25 - Selegie Road, Kirk Terrace, Niven Road

Sector 28 - Victoria Street, Jalan Sultan, Beach Road, Ophir Road

Sector 29 - Rochor Canal Road, Victoria Street, Ophir Road

Sector 30 - Jalan Besar, Syed Alwi Road, Rochor Canal Road

Sector 93 - Geylang Road, Changi Road, Telok Kurau area, Marine Parade Road, Joo Chiat Road, East Coast Road, Haig Road