Revision of Development Charge Rates
The selective reductions may modestly lower development costs in affected sectors, potentially supporting project feasibility without signalling a broad change across the non-landed market.
Non-landed residential development charge rates fell 0.2% on average from 1 March 2020, with five sectors declining 3% to 7% and 113 unchanged.
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The Ministry of National Development has revised the development charge (DC) rates for the period 1 March 2020 to 31 August 2020. The review is carried out on a half-yearly basis in consultation with the Chief Valuer.
The DC rates for Use Group B2 {Residential, (non-landed)} have decreased. The DC rates remain unchanged for Use Groups A (Commercial), B1 {Residential, (landed)}, C (Hotel/Hospital), D (Industry), E (Place of Worship / Civic and Community Institution), and 3 other Use Groups F, G and H. (See Appendix 1 for Table of DC Rates).
The DC rates for Use Group B2 {Residential, (non-landed)} have decreased by 0.2% on average. 5 out of the 118 sectors have reduction in DC rates ranging from 3% to 7%. Rates are unchanged for the remaining 113 sectors. The largest decrease of 7% applies to the following sectors:
• Sector 34 (Sophia Road / Upper Wilkie Road / Mackenzie Road / Niven Road / Kirk Terrace / Adis Road)
• Sector 35 (Cavenagh Road / Bukit Timah Road / Mackenzie Road / Upper Wilkie Road / Edinburgh Road / Buyong Road)
There are no changes to the Use Groups Table and the Geographical Sector maps.
The revised DC rates (Appendix 1), to be read in conjunction with the Use Groups Table (Appendix 2) and the set of Geographical Sector maps* (Map A and Map B), will be effective from 1 March 2020. The new rates will apply to cases which are granted Provisional Permission (PP) or 2nd 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.
* Please use the Development Charge (DC) Sector Maps and Rates to find out the DC sector number and rates of a particular site.