Increasing numbers of visitors pushed higher development charge rates for hotel sites:CBRE

Stronger interest in land parcels are due to the increasing numbers of visitors.

According to Li Hiaw Ho, Executive Director of CBRE Research, with effect from 1 March 2011, development charge rate for hotel sites was higher by an average of 26.7% compared to the previous six months when there was no change in development charge. The increase for the current revision is spread over 116 sectors and range from 16.0% to 39.0%.

The sectors with the highest increase in development charges rates of 38.0% or 39.0% are concentrated in the CBD, Clarke Quay, Marina Bay and Orchard area. This is hardly surprising as many hotel sites in these areas sold under the GLS programme found eager bidders.

A mixed site with a hotel element along Robinson Road/Boon Tat Street was sold in January 2011 for $1,072 psf/plot ratio to Royal Group Holdings. This site falls under Sector 7 which saw its DC rate increase by 39.0% to $416 psf and an implied land value of $595 psf/plot ratio.