Development charge rates raised 0.3% for non-landed residential use, cut 1.5% for commercial use

THE Singapore government has cut the development charge (DC) rates for the commercial use group by an average of 1.5 per cent for the period March 1, 2021 to Aug 31, 2021.

However, on average, DC rates have been raised by 1.5 per cent for landed residential use and 0.3 per cent for non-landed residential use.

DC rates for all the other use groups remain unchanged: hotel/hospital, industrial, place of worship/civic and community institution, open space, agriculture, and roads/railways.

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 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 non-landed residential use, DC rates were increased in eight sectors by 3 per cent to 6 per cent, while the DC rate for one sector was cut by 4 per cent. Rates have been left unchanged for the remaining 109 sectors.

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The 4 per cent cut is for Sector 34 (Sophia Road/Upper Wilkie Road/Mackenzie Road/Niven Road/Kirk Terrace/Adis Road).

The 6 per cent increase is for Sector 97 (Bedok South Avenue 1/New Upper Changi Road/Bedok Road/Upper East Coast Road) and Sector 98 (Kaki Bukit/ Bedok/Xilin Avenue/Simei/Changi South area).

For landed residential use, 44 out of the 118 sectors have increases in DC rates ranging from 1 per cent to 6 per cent.

Rates are unchanged for the remaining 74 sectors. The biggest increase of 6 per cent is for the following sectors:

• Sector 39 (Stevens Road/Ardmore Park/Claymore Hill/Claymore Road/Anderson Road)
• Sector 44 (Orchard Boulevard/Paterson Hill/Grange Road)
• Sector 46 (Hoot Kiam Road/Grange Road/Devonshire Road/Killiney Road/River Valley Road)
• Sector 48 (River Valley Road/River Valley Close/Martin Place/Kim Yam Road/Mohamed Sultan Road)
• Sectors 66 to 70 (Bukit Timah Road/Napier Road/Grange Road/Jervois Road/Tanglin Road/Ridout Road/Holland Road/Farrer Road/Botanic Gardens)
• Sector 108 (Holland Avenue/Holland Road/Sixth Avenue/Eng Neo Avenue/Pan-Island Expressway/Adam Road/Farrer Road/Margaret Drive/Tanglin Road/Commonwealth Avenue)
• Sector 110 (Commonwealth Avenue West/Holland Avenue/Holland Road/Ulu Pandan Road/Clementi Road)

For the commercial use group, 60 sectors are seeing reductions in DC rates of between 2 per cent and 3 per cent. Rates remain the same for the other 58 sectors.

The 3 per cent DC rate cut applies to a wide range of geographical sectors - including places such as the CBD, Boat Quay, Chinatown, Bencoolen Street, Beach Road, Victoria Street, Little India, Orchard, Newton, Thomson, Paya Lebar, East Coast Road, Marymount, Bradell, Yio Chu Kang, Seletar, Keppel Bay, Clementi,Jurong, Woodlands and Sembawang locales.