mr funny
01-03-07, 08:59
Property
Published March 1, 2007
Government raises DC rates
Biggest hikes in downtown areas such as Raffles Place, Marina Bay
By KALPANA RASHIWALA
REFLECTING rising property and land prices over the past six months, the government yesterday increased development charge (DC) rates.
http://img221.imageshack.us/img221/6375/bt5750954010320071c9a44bx3.jpg
The biggest increases were concentrated in the new and existing downtown locations such as Raffles Place and Marina Bay.
Jones Lang LaSalle's analysis showed that the highest jump in DC rates, of a whopping 90.5 per cent, was recorded for hotel use in the Raffles Place and neighbouring locations.
The government also raised DC rates - payable for enhancing a site's use - for non-landed residential use by as much as 54.8 per cent in both the new and existing downtowns - including Marina Bay and Raffles Place, and by 38.5 per cent in Shenton Way.
These areas saw new apartment launches, like Marina Bay Residences, One Shenton and Lumiere, achieve high prices in the past three months.
For landed residential use, Sentosa led the gains with a 27.7 per cent hike, not surprising given that a record price for a bungalow plot - $1,308 psf - was achieved at Sentosa Cove late last year.
Good Class Bungalow (GCB) locations like Holland Road/Sixth Avenue, Tanglin, Chatsworth, Nassim and White House Park, saw increases of 10-16 per cent in landed DC rates, mirroring the robust GCB deals in the second half of last year.
The biggest DC rate hike for commercial use was 44.4 per cent - in Raffles Place. Increases of 34.1-38.5 per cent were chalked up in other areas of the new and existing downtowns, including Shenton Way and Tanjang Pagar.
These areas have seen several office deals in the past six months, including Lippo Centre, Anson House, Dapenso Building and Crosby House, observed CB Richard Ellis.
The commercial use rate for the Tanglin/Cuscaden area was raised 39.5 per cent. CBRE said this could be due to the sale of 6B Orange Grove Road by FJ Benjamin.
DC is payable for enhancing a site's use or for building a bigger project on it. The rates, which are revised twice yearly on March 1 and Sept 1, are specified according to land use and location.
The average DC rate hikes from today, of 14.4 per cent for non-landed residential use and 11.7 per cent for commercial use, marked the first double-digit increases in seven years, according to Jones Lang LaSalle's analysis.
The average DC rate for landed residential use was raised 6.4 per cent, while that for the group that includes hotel and hospital use went up 27.3 per cent.
CBRE noted that the sharp rise in hotel DC rates - which followed no change, and a 1.6 per cent increase in the two preceding revisions on Sept 1 and March 1 respectively last year - reflects the rapidly rising level of interest in hotel sites in the last six months, on the back of strong tourism numbers.
The award of the Collyer Quay site in December at a then-record unit land price of $1,540 psf per plot ratio may have contributed to the sharp rise in hotel DC rate for the area, it reckons.
The area around Singapore River saw a 48.1 per cent increase in hotel DC rates, and the Moulmein/Novena area, around 43 per cent - both areas where hotel sites have been sold in recent months.
For non-landed and landed residential, commercial and hotel uses, DC rates were raised in virtually all of the 118 geographical sectors or locations across Singapore.
Interestingly, the Ardmore/Draycott, and Angullia Park vicinities - which saw record residential land prices achieved in the past six months - saw relative modest increases of 16.7 and 20 per cent respectively in non-landed residential DC rates.
DC rates for industrial and other uses were left unchanged.
Published March 1, 2007
Government raises DC rates
Biggest hikes in downtown areas such as Raffles Place, Marina Bay
By KALPANA RASHIWALA
REFLECTING rising property and land prices over the past six months, the government yesterday increased development charge (DC) rates.
http://img221.imageshack.us/img221/6375/bt5750954010320071c9a44bx3.jpg
The biggest increases were concentrated in the new and existing downtown locations such as Raffles Place and Marina Bay.
Jones Lang LaSalle's analysis showed that the highest jump in DC rates, of a whopping 90.5 per cent, was recorded for hotel use in the Raffles Place and neighbouring locations.
The government also raised DC rates - payable for enhancing a site's use - for non-landed residential use by as much as 54.8 per cent in both the new and existing downtowns - including Marina Bay and Raffles Place, and by 38.5 per cent in Shenton Way.
These areas saw new apartment launches, like Marina Bay Residences, One Shenton and Lumiere, achieve high prices in the past three months.
For landed residential use, Sentosa led the gains with a 27.7 per cent hike, not surprising given that a record price for a bungalow plot - $1,308 psf - was achieved at Sentosa Cove late last year.
Good Class Bungalow (GCB) locations like Holland Road/Sixth Avenue, Tanglin, Chatsworth, Nassim and White House Park, saw increases of 10-16 per cent in landed DC rates, mirroring the robust GCB deals in the second half of last year.
The biggest DC rate hike for commercial use was 44.4 per cent - in Raffles Place. Increases of 34.1-38.5 per cent were chalked up in other areas of the new and existing downtowns, including Shenton Way and Tanjang Pagar.
These areas have seen several office deals in the past six months, including Lippo Centre, Anson House, Dapenso Building and Crosby House, observed CB Richard Ellis.
The commercial use rate for the Tanglin/Cuscaden area was raised 39.5 per cent. CBRE said this could be due to the sale of 6B Orange Grove Road by FJ Benjamin.
DC is payable for enhancing a site's use or for building a bigger project on it. The rates, which are revised twice yearly on March 1 and Sept 1, are specified according to land use and location.
The average DC rate hikes from today, of 14.4 per cent for non-landed residential use and 11.7 per cent for commercial use, marked the first double-digit increases in seven years, according to Jones Lang LaSalle's analysis.
The average DC rate for landed residential use was raised 6.4 per cent, while that for the group that includes hotel and hospital use went up 27.3 per cent.
CBRE noted that the sharp rise in hotel DC rates - which followed no change, and a 1.6 per cent increase in the two preceding revisions on Sept 1 and March 1 respectively last year - reflects the rapidly rising level of interest in hotel sites in the last six months, on the back of strong tourism numbers.
The award of the Collyer Quay site in December at a then-record unit land price of $1,540 psf per plot ratio may have contributed to the sharp rise in hotel DC rate for the area, it reckons.
The area around Singapore River saw a 48.1 per cent increase in hotel DC rates, and the Moulmein/Novena area, around 43 per cent - both areas where hotel sites have been sold in recent months.
For non-landed and landed residential, commercial and hotel uses, DC rates were raised in virtually all of the 118 geographical sectors or locations across Singapore.
Interestingly, the Ardmore/Draycott, and Angullia Park vicinities - which saw record residential land prices achieved in the past six months - saw relative modest increases of 16.7 and 20 per cent respectively in non-landed residential DC rates.
DC rates for industrial and other uses were left unchanged.