Hotspot hit hardest by commercial development charges | 3 March 2014
Commercial investors looking to build in Bukit Timah, where much of Singapore’s most valuable land is located, will be required to meet significantly higher development charges (DC) as of today.
Commercial DC rates for the area will rise by 29 per cent for the period between March and August. Holland Road, Queensway and Farrer Road – all of which play key parts in the country’s retail and transport infrastructure – have also been affected to the same extent.
Of the island’s 118 geographical sectors, 89 have been hit by the changes, with an average increase of 15 per cent.
According to channelnewsasia.com, the charges come into force when an investor develops a property site into something more valuable. The rates are reviewed twice a year.
Mr Ku Swee Yong, the CEO of property firm Century 21, spoke of the reasons behind the government’s decision to increase the fees. He was quoted by todayonline.com as saying: “One of the reasons could be that new mixed developments in some of these areas, for example, KAP Residences, sold very well, so that pushed up the rates. But we will see whether this is sustainable when these projects get TOP (Temporary Occupation Permit).”
In terms of the residential market, landed home rates will increase by approximately 10 per cent in just 13 geographical sectors. The charges for non-landed properties will rise by an average of eight per cent in 15 of the areas.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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