DC rates revisions are consistent with market trends say market watchers

DC rates revisions announced by MND is a tax that is levied when planning permission is granted to carry out development projects that increase the value of the land.

The Ministry of National Development has revised the development charge (DC) rates for the period 1 March 2019 to 31 August 2019. The review is carried out on a half-yearly basis in consultation with the Chief Valuer.

The DC rates revisions saw two Use Groups, namely Groups A (Commercial) and C (Hotel/Hospital) being increased; while the DC rates for Use Group B2 {Residential, (non-landed)} being decreased.

The DC rates remain unchanged for Use Groups B1 {Residential, (landed)}, D (Industry), E (Place of Worship / Civic and Community Institution), and 3 other Use Groups F, G and H. (See Appendix 1 for Table of DC Rates).

https://www.icompareloan.com/resources/new-launch-condo-home-loans-cooling/

The DC rates revisions saw Use Group A (Commercial) being increased by 9.8% on average. 116 out of the 118 sectors have increases in DC rates ranging from 3% to 17%. There is no change to the DC rates for the remaining 2 sectors. The largest increase of 17% applies to the following sectors:

• Sector 15 (Outram Road / Eu Tong Sen Street)

• Sector 16 (Cantonment Road / Chinatown area / New Bridge Road / Upper Cross Street / Cross Street / Stanley Street / McCallum Street / Amoy Street / Erskine Road / South Bridge Road / Maxwell Road / Peck Seah Street / Gopeng Street / Tanjong Pagar Road)

• Sector 21 (New Bridge Road / Boat Quay / South Canal Road / South Bridge Road / Upper Pickering Street)

• Sector 25 (Selegie Road / Kirk Terrace / Niven Road)

• Sector 28 (Victoria Street / Jalan Sultan / Beach Road / Ophir Road)

• Sector 29 (Rochor Canal Road / Victoria Street / Ophir Road)

• Sector 30 (Jalan Besar / Syed Alwi Road / Rochor Canal Road)

• Sector 93 (Geylang Road / Changi Road / Telok Kurau area / Marine Parade Road / Joo Chiat Road / East Coast Road / Haig Road)

The DC rates revisions saw Use Group B2 {Residential, (non-landed)} being decreased by 5.5% on average. 94 out of 118 sectors have reduction in DC rates ranging from 4% to 13%. Rates are unchanged for the remaining 24 sectors. The largest decrease of 13% applies to the following sectors:

• Sector 59 (Thomson Road / PIE / CTE / Mandalay Road / Irrawaddy Road)

• Sector 91 (Dunman Road / Tanjong Katong Road / ECP / Fort Road / Mountbatten Road)

• Sector 93 (Geylang Road / Changi Road / Telok Kurau area / Marine Parade Road / Joo Chiat Road / East Coast Road / Haig Road)

• Sector 94 (Mountbatten Road / Joo Chiat Road / Marine Parade Road / ECP / Tanjong Katong Road)

• Sector 104 (Marymount Road / Ang Mo Kio Ave 3 / Hougang Ave 2 / Tampines Road / Defu area / Lorong Ah Soo / Upper Paya Lebar Road / Bartley Road / Braddell Road)

https://www.icompareloan.com/resources/mortgage-broker-singapore-best-rate/

The DC rates for Use Group C (Hotel/hospital) have increased by 45.6% on average. 116 out of the 118 sectors have increases in DC rates ranging from 7% to 74%. There is no change to the DC rates for the remaining 2 sectors. The largest increase of 74% applies to the following sectors:

• Sector 25 (Selegie Road / Kirk Terrace / Niven Road)

• Sector 26 (Selegie Road / Rochor Canal Road / Bencoolen Street)

• Sector 28 (Victoria Street / Jalan Sultan / Beach Road / Ophir Road)

• Sector 29 (Rochor Canal Road / Victoria Street / Ophir Road)

• Sector 30 (Jalan Besar / Syed Alwi Road / Rochor Canal Road)

• Sector 32 (Serangoon Road / Bukit Timah Road / Tekka Lane / Race Course Road / Rangoon Road / Farrer Park Station Road /Birch Road)

• Sector 33 (Mackenzie Road / Bukit Timah Road)

• Sector 34 (Sophia Road / Upper Wilkie Road / Mackenzie Road / Niven Road / Kirk Terrace / Adis Road)

There are no changes to the Use Groups Table and the Geographical Sector maps.

The revised DC rates (Appendix 1), to be read in conjunction with the Use Groups Table (Appendix 2) and the set of Geographical Sector maps* (Map A and Map B), will be effective from 1 March 2019. The new rates will apply to cases which are granted Provisional Permission (PP) or 2nd and subsequent extensions 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.

Commenting on MND’s DC rates revisions, JLL said that it is consistent with market trends. While CBRE said that DC rate revisions for the period of 1 March 2019 to 31 August 2019 is a good barometer for the real estate capital market.

DC rates revisions often rely on actual transactions or market indicators and may be affected by policy changes at times. The DC rate revision is usually retrospective on how the real estate market has been performing.

CBRE said: “Not surprisingly, increased activities in the office and hotel markets have resulted in upward revisions in the DC rates, while a slowdown in residential land activity has resulted in lowered DC rates for some key areas.”

How to Secure the Best Home Loans Quickly

iCompareLoan is the best loans portal for home loans, buyers, investors and real estate agents alike in Singapore. On iCompareLoan, you will be able to find all the latest news and views, informational guides, bank lending rates and property buying trends, and research data and analysis.

Whether you are looking to buy, sell or refinance apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s most comprehensive and up-to-date property news and best home loans trends to facilitate your property buying decisions.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

Our trademarked Home Loan Report is Singapore’s first one-of-a-kind analysis platform that provides latest updates of detailed loan packages and helps property agents, financial advisors and mortgage brokers analyse best home loan packages for their clients, so that they may give unbiased home loan/commercial loan analysis for their property buyers and home owners. Our distinguished Panel of Property Agents who are users of our Home Loan report can give the best all-rounded advise to real estate seekers.

All the services of our mortgage consultants are ABSOLUTELY FREE, which means it’s all worth it to secure a loan through us.

Whether it is best home loans, best commercial loans or refinancing of existing loans or SME loans, CONTACT US TODAY!