,Singapore

Ministry of National Development hikes residential development charge rates

DC rates for the residential, landed use group increased by 6.3%, the highest since September 2013.

In its half-yearly review, the Ministry of National Development hiked the development (DC) rates for the residential use group for the period of 1 September 2021 to 28 February 2022.

DC rates for the commercial use group decreased by 0.7% on average. Rates for use in the hospitality, industry, place of worship, and other use groups have remained the same.

For the use group B1 (residential, landed), rates increased by 6.3% on average, the highest since September 2013’s 6.8% rate.

The residential, non-landed user group (B2) had rates increase by 10.9% on average, the highest since March 2018’s 22.8% rate.

In a statement, CBRE Southeast Asia Head of Research Tricia Song said these increases were within their expectation.

The increase is largely within expectations, with the strong activity observed in the GCB market, boosted by fresh demand from nouveau riche in industries which benefitted from pandemic-induced trends,” Song said on the residential, landed rates, adding that the increases in the B2 rates were expected due to robust bids in government land sales.

Wong Xian Yang, head of research for Singapore at Cushman & Wakefield, noted that DC rates in the non-landed residential group increased in 116 out of 118 sectors ranging 2% to 19.3%, whilst the remaining two sectors stayed the same. The 19% increase applied to sectors 16 and 107, possibly from the sale of GLS sites and sites from the collective sales market.

“In DC Sector 107, the private housing site at Ang Mo Kio Avenue 1 has drawn the highest bid of S$381.4m or nearly S$1,118 price per square feet per plot ratio (psf ppr) in a state tender that closed in May 2021. In July 2021, the Lentor Central site attracted a top bid of S$784.1m or S$1,204 psf ppr. Both land tenders attracted healthy participation rates and robust bid price from developers indicating their hunger for land, driving up land prices. In DC Sector 16, Maxwell House was sold en bloc for S$276.8m. Whilst it is zoned commercial, the developer has plans to redevelop the site into a commercial and residential mixed-use development, according to media reports,” Wong said.

For the landed residential group, the highest increase was for sector 67, by 18.3%, whose notable transactions include the purchase of a Nassim Road GCB at $4,005 psf.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

HongKongLand had the most growth for the day.
It surpassed the Bloomberg consensus estimate of 14.5%.
The agreement aims to grow tourism and economic activities as borders reopen. 
It will also enter a loan agreement worth $210.6m.
The acquisition will be fully funded by cash through internal resources.
These countries are Cambodia, the Maldives, Sri Lanka, Thailand, and Turkey.
The decrease was driven by profit declines in their beer and non-alcoholic businesses.
Sources say the state-owned Chinese firm is in talks with advisers about the potential divestment.
The tests start on 29 November.
Exercise CyberMaritime 2021 puts the sector's cybersecurity readiness to the test.
This is equivalent to 236 attackers per company in a year.
Genting Singapore was seen with the most growth.
The partnerships aim to improve care delivery and patient outcomes.