Singapore, 1 March 2021 – The Ministry of National Development has revised the development charge (DC) rates for the period 1 March 2021 to 31 August 2021. The review is carried out on a half-yearly basis in consultation with the chief valuer.
Development charge is a tax that is levied when planning permission is granted to carry out development projects that increase the value of the land; for instance, rezoning to a higher value use or increasing the plot ratio.
The DC rates have decreased for the commercial group (see Use Groups Table for details), but have increased for the landed and non-landed residential group. For hotel, hospital, industry, place of worship, civic and community/institutional groups, the charges remained unchanged.
Commercial
The charges for commercial development have decreased by 1.5 per cent on average. Sixty out of 118 sectors (areas) have reduced DC rates ranging from 2 to 3 per cent, while the remaining 58 sectors remained unchanged.
Residential
Landed residential has seen an increase of 1.5 per cent on average. While the rates of most sectors (74) remained unchanged, the rates in 44 out of the 118 sectors have increased, with the values ranging from 1 to 6 per cent.
Non-landed residential has seen an increase of 0.3 per cent on average. Only one sector saw a decline of 4 per cent. The majority (109) did not see any changes and only eight out of 118 sectors have increases in DC rates ranging from 3 to 6 per cent.
The revised DC rates are to be read in conjunction with the Use Groups Table and the set of geographical sector maps. This is with immediate effect from today, 1 March 2021. The new rates will apply to cases that are granted Provisional Permission (PP), or second and subsequent extensions 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.
– Construction+ Online
