It is not unexpected that Development charge rates for Residential sector drops slightly as compared to Hotels and commercial sectors.
As the prices for residential properties for 1st and 2nd Quarters have shown, the accumulated demand during the Circuit breaker, together with the developers giving slightly better discounts, buying activities has somewhat been more resilient than expected.
As for Hotels and Commercial use sectors, it will be a more challenging times for business owners and landlords as it may take a longer time for business activities to be resumed and innovated after this unprecedented pandemic.
Summary of Article
HOTELS and commercial property, which have received the biggest drubbing from the Covid-19 pandemic, are the use groups with the largest cuts in development charge (DC) rates for the next half-year period.
DC rates for the non-landed residential and industrial use groups – property market segments that have been relatively less scathed by the virus outbreak, saw more modest declines in the latest revision of DC rates unveiled on Monday evening.
On average, DC rates have declined by 3.6 per cent for commercial use, 0.8 per cent for non-landed residential use, 7.8 per cent for hotel/hospital use and 0.9 per cent for industrial use.
Developers pay a DC for the right to enhance the use of some sites or to build bigger projects on them. The Ministry of National Development (MND) revises the rates on March 1 and Sept 1 each year, in consultation with the taxman’s chief valuer (CV). They are stated according to use groups across 118 geographical sectors in Singapore.