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Increase in DC rates to have impact on en-bloc sales?

Increase in DC rates to have impact on en-bloc sales?

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The government is raising development charge or DC rates for non-landed residential use by 13.8 per cent on average. The areas which have seen private-sector collective sales and bullish land bids at state tenders in recent months will see some of the biggest hikes in DC rates.

The government is also increasing DC rates by an average of 3.8 per cent for commercial use and 0.3 per cent for landed residential use. The latest changes are for the period Sept 1, 2017 to Feb 28, 2018. Upcoming executive condo launches include Anchorvale Lane EC, Rivercove EC while existing ones include Parc Life EC , Signature EC  at Yishun,  Brownstone EC, Visionaire EC, Inz Residence, The Criterion EC and Northwave EC, The Terrace EC,  The Vales EC, Hundred Palms Residences EC, Sol Acres EC and The Bellewoods EC. Rivercove Residences floor plans and Rivercove Residences EC details will be available shortly.

DC is payable for enhancing the use of some sites or to build bigger projects on them.

The Ministry of National Development, in consultation with the Chief Valuer (CV), revises DC rates twice a year, on March 1 and Sept 1. The rates are based on CV's assessment of land values and take into consideration recent land sales and other property transactions. DC rates are stated according to use groups across 118 geographical sectors in Singapore.

MND said on Thursday evening that DC rates remain unchanged for industrial use as well as the use groups that cover hotels/hospitals, place of worship/civic and community institution, and three other use groups.

For the non-landed residential use group, DC rates are being increased in 116 of the 118 geographical sectors by between 6 per cent and 29 per cent. The biggest increase of 29 per cent applies to Sector 100 (Tampines Road/Hougang/Punggol/Sengkang). This is the sector where Rio Casa, which was sold through a collective sale in May this year, is part of.

Sector 101 which includes Eunosville, another development that has been sold through an en bloc sale, saw a 28 per cent DC rate hike. Sector 103, where a 99-year leasehold private housing site along Woodleigh Lane was sold at a state tender, also saw a 25 per cent rate hike. Sector 111, where a 99-year leasehold site along Stirling Road was sold at a state tender, saw a 25 per cent rate hike.


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