Today, the government revised the development charge (DC) rates for the next 6 months. They increased the DC rates for two Use Groups, namely Groups A (Commercial) and B2 (Residential, non-landed) have increased.
Starting from tomorrow, the new rates for non-landed residential development will increase by 22.8% on average. This is the highest average increase since September 2007 when the DC rates jumped by a massive 57.8% on average.
The latest round of increase in the DC rates for non-landed residential properties could marginally dampen the enbloc sale fever.
Depending on the location, the increase in DC could have a greater impact on the enbloc sale of 99-year leasehold projects.
Kevin Lim, SLP Enbloc Division Director said: “The increase in Development Charge (DC) rates will dampen the aggressive bids by developers. As such, owners who are involve in the enbloc process will have to act fast in order to take advantage of the positive buying sentiment, if they want to achieve higher than reserve price.”
Watch the Channel NewsAsia interview here (17:07 – 19:34).