The improved real estate market has prompted the government to increase the fees that developers pay to develop the use of residential sites.
This fee, referred to as the development charge (DC), closely reflects the recent values of properties and lands, as it is adjusted every six months.
A developer who wishes to enhance the use of a site, like redeveloping an existing project into a bigger one, will have to pay a DC.
Starting today, the DC will be raised by about 8 percent for non-landed properties and an average of 12 percent for landed homes. However, for commercial sites, the rate has dipped given the subdued market.
The new rates highlight the rapid rebound in the residential property market. The DC rate for non-landed homes was down two percent in the past six months, whereas the rate for landed homes remains unrevised for two years.