Singapore’s Ministry of National Development has revised the development charge (DC) rates for the period 1 September 2019 to 29 February 2020. Muted adjustments were made to the DC rates for commercial use – a rise of 1.7% across 59 sectors, smaller than the 9.8% increment in March. Rates for non-landed residential use were reduced by 0.3%, compared to a 5.5% cut in March.
The main changes are:
1. Use Group A (Commercial) – increased by average of 1.7%. 59 out of the 118 sectors have increases in DC rates ranging from 3% to 7%. The largest increase of 7% applies to the following sectors:
- Sector 100 (Tampines Road / Hougang / Punggol / Sengkang area)
- Sector 105 (Ang Mo Kio / Yio Chu Kang / Seletar area)
- Sector 112 (Pan-Island Expressway / Bukit Batok East Avenue 6 / Upper Bukit Timah Road / Clementi Road / West Coast Highway / Penjuru Road / Jalan Buroh / Jurong East Area)
The biggest hike in commercial DC rates was in Hougang, Punggol, and Sengkang, which could be attributed to the recent transactions for Rivervale Mall and 1/3 stake in Waterway Point.
2. Use Group B2 (Residential, non-landed) – decreased by 0.3% on average. 7 out of the 118 sectors have reduction in DC rates ranging from 4% to 7%. The largest decrease of 6% to 7% applied to the following sectors:
- Sector 112 (Pan-Island Expressway / Bukit Batok East Avenue 6 / Upper Bukit Timah Road / Clementi Road / West Coast Highway / Penjuru Road / Jalan Buroh / Jurong East Area)
- Sector 105 (Ang Mo Kio / Yio Chu Kang / Seletar area)
- Sector 34 (Little India/ Selegie/ Mount Sophia)
- Sectors 97 & 98 (Bedok/ Upper Changi/ Tampines)
The West Coast and Clementi area had the DC rates for non-landed residential sites trimmed by 7% probably due to the sale of a Clementi Ave 1 site in a government land sale which was lower than the implied land rate.
The DC rates remain unchanged for Use Groups B1 (Residential, landed), C (Hotel/Hospital), D (Industry), E (Place of Worship / Civic and Community Institution), and 3 other Use Groups F, G and H.
There are also no changes to the Use Groups Table and the Geographical Sector maps.
The revised DC rates will be effective from 1 September 2019. The new rates will apply to cases which are granted Provisional Permission (PP) or 2nd and subsequent extensions to the PP on or after the effective date.
The review is carried out on a half-yearly basis in consultation with the Chief Valuer.
The full revised DC rates can be found here.