mr funny
24-07-07, 07:46
July 22, 2007
En bloc frenzy not behind rise in development charge
THE Minister for National Development, Mr Mah Bow Tan, explained on Sunday that the Government's recent move to raise development charges was not a reaction to the current collective sale frenzy.
Rather, the move was because the 'property market is now booming' and it was 'timely to return' to the position before 1985 when the market went down and there was a recession.
The Government announced the increase, from 50 per cent to 70 per cent of the rise in value, on Wednesday.
Mr Mah called it 'a sharing of the gains and of the increase in value of the land as a result of the Government?s planning approval'.
Some of the increase in revenue will be used to provide infrastructure such as roads, rail and power.
Mr Mah was speaking to reporters after an event for at-risk youths organised by the north-east mosque cluster in Tampines on Sunday morning.
Though the move could affect some collective sale developments, he felt the overall impact was likely to be minimal.
He assured the public that the Government was closely monitoring the property market and the balance between supply and demand.
If supply falls short, it will step up its land sales programme.
On rising rental rates, he said there had been reports of reasonable prices still being asked in good areas.
The high prices, he said, were generally due to people focusing on particular properties.
Read the full report in Monday's edition of The Straits Times.
En bloc frenzy not behind rise in development charge
THE Minister for National Development, Mr Mah Bow Tan, explained on Sunday that the Government's recent move to raise development charges was not a reaction to the current collective sale frenzy.
Rather, the move was because the 'property market is now booming' and it was 'timely to return' to the position before 1985 when the market went down and there was a recession.
The Government announced the increase, from 50 per cent to 70 per cent of the rise in value, on Wednesday.
Mr Mah called it 'a sharing of the gains and of the increase in value of the land as a result of the Government?s planning approval'.
Some of the increase in revenue will be used to provide infrastructure such as roads, rail and power.
Mr Mah was speaking to reporters after an event for at-risk youths organised by the north-east mosque cluster in Tampines on Sunday morning.
Though the move could affect some collective sale developments, he felt the overall impact was likely to be minimal.
He assured the public that the Government was closely monitoring the property market and the balance between supply and demand.
If supply falls short, it will step up its land sales programme.
On rising rental rates, he said there had been reports of reasonable prices still being asked in good areas.
The high prices, he said, were generally due to people focusing on particular properties.
Read the full report in Monday's edition of The Straits Times.