Government Revises DC Rates
The Ministry of National Development (MND) has announced the latest changes in the development charge (DC) rates in the property market starting this September to February next year.
Development charge rates for Commercial developments (Group A) rose by nine percent with the largest increase of 20 percent in Sector 53 (Farrer Park/ Syed Alwi Balestier Road / Lavender area) and Sector 93 (Marine Parade Road / Joo Chiat Road / East Coast Road / Haig Road area).
Meanwhile, the DC rates for landed residential (Group B1) have not changed in all sectors. However, the rates for non-landed residential (Group B2) have increased by an average of 1 percent, with increases ranging from 8 to 12 percent in 15 sectors and no change in DC rates for the remaining 103 sectors. The largest increase in Group B2 rate is in Sector 98 (Bedok North / Simei / Tampines New Town) at 12 percent.
For Hotels/Hospitals (Group C) the DC rates have an average increase of 11 percent with the largest increase of 26 percent in Sector 53 (Farrer Park/ Syed Alwi Road/ Balestier Road/ Lavender Road area).
The DC rates Industrial/Warehousing use properties (Group D) have increased by 14 percent on average. The largest increase is 23 percent in Sector 105 (Ang Mo Kio/ Yio Chu Kang Road area).
There are no changes in the DC rates of the remaining four use groups.
The Use Groups Table and the number or boundaries of the 118 geographical sectors remain unchanged.
The revised DC rates, to be read in conjunction with the Use Group Table and the set of Geographical Sector maps (Map A and Map B) will be effective from September 1, 2012. The new rates will apply to cases which are granted Provisional Permission (PP) or 2nd and the subsequent extension to the PP on or after the effective date.
If there is any disagreement over the DC payable for any development proposal, calculated based on the rates under the respective Use Groups, developers and owners can opt for a case-by-case valuation by the Chief Valuer, as provided for in the Planning Act.