DC rates cut by average of 7.8% for hotel use, 3.6% for commercial use

THE Singapore government has cut the development charge (DC) rates for commercial, non-landed residential, hotel/hospital, and industrial use groups for the period Sept 1, 2020 to Feb 28, 2021.

On average, DC rates have declined by 3.6 per cent for commercial use, 0.8 per cent for non-landed residential use, 7.8 per cent for hotel/hospital use and 0.9 per cent for industrial use.

Developers pay a DC for the right to enhance the use of some sites or to build bigger projects on them. 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 (CV). DC rates are based on the CV'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 commercial use, DC rates were cut for 110 sectors by between 3 per cent and 7 per cent. Rates were left unchanged for the remaining eight sectors. The biggest decline of 7 per cent is for the following sectors:

• Sector 11 (Shenton Way/Straits Boulevard/Marina Boulevard/Raffles

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Quay)

• Sector 12 (Bayfront Area/Marina Bay Sands)

• Sector 41 (Cairnhill Road/Orchard Road/Somerset Road/Exeter Road/

Buyong Road/Cavenagh Road)

• Sector 42 (Scotts Road/Orchard Road/Orchard Boulevard/Bideford

Road/Nutmeg Road/Mount Elizabeth/Claymore Road.

For non-landed residential use, DC rates have been trimmed in 34 sectors by 2-3 per cent, and left untouched for the remaining 84 sectors.

In the hotel/hospital use category, 116 sectors saw reductions ranging from 4 per cent to 15 per cent, with no changes for the remaining two sectors. The biggest drop of 15 per cent applies to the following sectors:

• Sector 3 (Hill Street/Victoria Street/Seah Street/Beach Road/Ophir

Road/Nicoll Highway/Esplanade Drive/City Hall area)

• Sector 5 (Nicoll Highway/Suntec City area/Ophir Road/Raffles Avenue/

Promenade area)

• Sector 6 (Collyer Quay/Fullerton Road)

• Sector 11 (Shenton Way/Straits Boulevard/Marina Boulevard/Raffles

Quay)

• Sector 12 (Bayfront Area/Marina Bay Sands)

• Sector 41 (Cairnhill Road/Orchard Road/Somerset Road/Exeter Road/

Buyong Road/Cavenagh Road)

• Sector 42 (Scotts Road/Orchard Road/Orchard Boulevard/Bideford

Road/Nutmeg Road/Mount Elizabeth/Claymore Road)

• Sector 43 (Tanglin Road/Cuscaden Road/Orchard Boulevard/Grange

Road).

DC rates for industrial use were trimmed in 52 sectors by between 2 per cent and 3 per cent, with no changes in the remaining 66 sectors.

There were no changes in DC rates for the other use groups: landed-residential, place of worship/civic and community institution, open space/nature reserve, agriculture, and drain/road/railway/cemetery.