The moderate increase in the non-landed residential DC rates is due to the moderating impact of the Dec 2021 property cooling measures. (Picture: Samuel Isaac Chua/The Edge Singapore)
SINGAPORE (EDGEPROP) - The Ministry of National Development (MND) has announced the latest revision of the development charge (DC) rates following its biannual review. The latest DC rates will cover the six-month period from March 1 to August 31 this year.
See also: DC rates dip 0.2% for non-landed residential; unchanged for other sectors
The average DC rate for landed residential increased 4.8%. In contrast, the previous six-month period saw the DC rate for this segment increase by 3.6%.
The largest DC rate increase came from the geographical sector covering the Cluny Road/Napier Road/Tanglin/Anderson Road/Stevens Road/Dalvey Road which jumped by 10%.
According to Wong Xian Yang, head of research Singapore at Cushman & Wakefield, demand for landed properties "continues to be supported by strong demand driven by strong wealth inflows and wealth creation effects.”
The landed market is also fairly insulated against the latest property cooling measures that were rolled out in December 2021. This is because the market is driven by owner occupier demand and would see limited impact from the increase in ABSD rates, says Wong.
Meanwhile, the average non-landed residential DC rates marginally increased by 0.3%, compared to the previous period which saw the DC rate of this segment climb 10.9%. “The decrease in the non-landed residential DC rates is due to the moderating impact of the latest property cooling measures that were rolled out in December last year,” says Wong.
Only six geographic sectors saw an increase in the DC rates ranging from 3% to 15%, while the DC rates in the other sectors remained unchanged. The sector covering Guillemard Road/ Mountbatten Road/ Old Airport Road/ Dunman Road/ Tanjong Katong Road/ Haig Road/ Geylang Road saw the largest increase of 15%.
The average DC rates for commercial increased 0.7%. The increase in DC rates for this segment were mostly concentrated around city centre localities such as Raffles Place and Tanjong Pagar. Commercial DC rates in these areas rose between 2.6% to 3.2%. Other localities in the city-fringe and suburban locations remained flat. (Find Singapore commercial properties with our commercial directory)
“This is reflective of a flight to quality and keen interest for city centre commercial properties,” says Wong.