Some things changes fast but not the DC or Development Charge, since September 01 to February 28, 2019, landed housing maintain its rate and compared to non-landed areas where it goes up to as high as 9.8 percent on an average, told the MND or Ministry of National Development, August 31, Friday.
Specifically, the Development Charge over non -landed residential increases from 3.0 percent jumped to 33 percent among the 75 sectors out of 118 territorial or geographical sectors, thus unchanged were the 43 sectors.
The most affected of the increase are the Sectors 43 and 67. The Sector 43 composed of Grange Road, Cuscaden Road, Tanglin Road and Orchard Blvd, while Sector 67, involves the Cluny Road, Napier Road, Dalvey Road, Anderson Road, Orange Grove Road and Tanglin Road.
Nicholas Mak, the executive director of ZACD Group shared to Business Times the newest Development Charge rate increase was more justified compared to the previous of non-landed homes. Way back, March 01, 2018, the corresponding levy for the group was pulled from 12 percent to 38 percent among 116 of 118 residential that includes sectors 34, 23 and 19 witnessing the biggest return.
“The major upward redrafting of Development Charge is in sync with other precautionary solution to mellow down real estate market and regulate some bullish offers of developers,” said, Christine Sun, the chair of research for OrangeTee & Tie.
Going forward, a hike on DC can have a little impact only while en bloc market is melting down thus making developers crave for lands in moderation following property new approaches, Christine added.
Hutton’s Asia research chair, Lee Sze Teck coincide with the fearless forecast claiming over future Development Charge rate increase for Lee Sze Teck residential property would run only from zero to 2.0 percent.
As per dialogue with the dynamic Chief Valuer, revisions made by MND, DC rates would be twice a year, March 01 and September 01 for various land purposes all throughout 118 geographical sectors around city-state. The said levy would be payable only the moment the property owner upgrades the use of the area.