Development charge rates revised by MND

[reporter2]

http://business.asiaone.com/Business...29-330910.html

Wednesday, Feb 29, 2012

AsiaOne

Development charge rates revised by MND


The Ministry of National Development (MND) has revised the development charges (DC) rates for the period from March 1 to August 31 this year.

The DC rates for Group A (Commercial) have increased by an average of 6 per cent, with the largest increase of 52 per cent in Sector 106 (Sengkang / Seletar Area).

The DC rates for Group B1 {Residential (landed)} have not changed, while the rates for Group B2 {Residential (non-landed)} have decreased by 3 per cent on average.

The most significant decreases in DC rates are in Sector 100 (Punggol Town / Upper Serangoon Road area) and Sectors 103 & 104 (Hougang / Upper Paya Lebar Road / Toa Payoh / Bishan area), all by 14 per cent.

For Group C (Hotel/Hospital), the DC rates have an average increase of 15 per cent with the largest increase of 29 per cent in Sectors 79-85 & 87(Alexandra / Redhill / Tiong Bharu / Bukit Merah / Telok Blangah Road area), Sector 99 (Pasir Ris / Loyang / Upper Changi Road area) and Sector 110 (Holland / Ulu Pandan area).

The DC rates for the remaining five Use Groups, namely Group D (Industrial / Warehousing Use), Groups E (Place of Worship/Civic & Community Institution), F (Open Space), G (Agriculture) and H (Drain, road etc) have not changed.

There is no change to the number of geographical sectors and their boundaries; but the Use Groups Table has been amended to include community sports and fitness building in Use Group E, to better differentiate such facilities from the rest of the uses under Use Group A.

The revised DC rates, to be read in conjunction with the revised Use Group Table and the set of Geographical Sector maps (Map A and Map B), will be effective from 1 March 2012. The new rates will apply to cases which are granted Provisional Permission (PP) or 2nd and 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.

Those who wish to find out more on DC sectors and use groups can contact Mr Chin Koon Fun from URA at 6321 6575. Those who have enquiries on valuation matters can contact Ms Loh Chye Ling from IRAS at 6351 4138.

[email protected]

[DC33_2008]

How to have dropped in property prices with the ever-increasing DC rates? Developer will pass on to consumers.

http://business.asiaone.com/Business...29-330910.html

Wednesday, Feb 29, 2012

AsiaOne

Development charge rates revised by MND


The Ministry of National Development (MND) has revised the development charges (DC) rates for the period from March 1 to August 31 this year.

The DC rates for Group A (Commercial) have increased by an average of 6 per cent, with the largest increase of 52 per cent in Sector 106 (Sengkang / Seletar Area).

The DC rates for Group B1 {Residential (landed)} have not changed, while the rates for Group B2 {Residential (non-landed)} have decreased by 3 per cent on average.

The most significant decreases in DC rates are in Sector 100 (Punggol Town / Upper Serangoon Road area) and Sectors 103 & 104 (Hougang / Upper Paya Lebar Road / Toa Payoh / Bishan area), all by 14 per cent.

For Group C (Hotel/Hospital), the DC rates have an average increase of 15 per cent with the largest increase of 29 per cent in Sectors 79-85 & 87(Alexandra / Redhill / Tiong Bharu / Bukit Merah / Telok Blangah Road area), Sector 99 (Pasir Ris / Loyang / Upper Changi Road area) and Sector 110 (Holland / Ulu Pandan area).

The DC rates for the remaining five Use Groups, namely Group D (Industrial / Warehousing Use), Groups E (Place of Worship/Civic & Community Institution), F (Open Space), G (Agriculture) and H (Drain, road etc) have not changed.

There is no change to the number of geographical sectors and their boundaries; but the Use Groups Table has been amended to include community sports and fitness building in Use Group E, to better differentiate such facilities from the rest of the uses under Use Group A.

The revised DC rates, to be read in conjunction with the revised Use Group Table and the set of Geographical Sector maps (Map A and Map B), will be effective from 1 March 2012. The new rates will apply to cases which are granted Provisional Permission (PP) or 2nd and 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.

Those who wish to find out more on DC sectors and use groups can contact Mr Chin Koon Fun from URA at 6321 6575. Those who have enquiries on valuation matters can contact Ms Loh Chye Ling from IRAS at 6351 4138.

[email protected]

[kane]

Actually when they position reserve price of land at a certain level, why is there a need to increase dc charges? Just raise the reserve price of land lor.

[Kelonguni]

Some decreases:

"The DC rates for Group B1 {Residential (landed)} have not changed, while the rates for Group B2 {Residential (non-landed)} have decreased by 3 per cent on average.

The most significant decreases in DC rates are in Sector 100 (Punggol Town / Upper Serangoon Road area) and Sectors 103 & 104 (Hougang / Upper Paya Lebar Road / Toa Payoh / Bishan area), all by 14 per cent."

This might explain why apartments in certain areas are more affordable than other areas.

[carbuncle]

Its a direct causative factor of most new launches being in those low DC areas and the corresponding proliferation of MM. Maybe we can give new term to this phenomenon. Call it Sector 100 effect.