The revision of the development charge rates (DC) rates for the period of September 1 2010 to February 2011 has showed that landed and non-landed residential use has climbed an average of 13 percent.
The DC rate revision also factored the effect of the Circle Line, especially on Braddell, Potong Pasir, Bartley, Upp Aljunied and Woodleigh areas, as well as in the areas of Bishan and Ang Mo Kio.
These areas recorded an increase of about 20 percent for the residential landed use group and about 15.6 percent for the residential non-landed use group. They also saw increases in the commercial use group of 7.5 percent and 7.3 percent, respectively.
The increases recorded by the two sectors are higher compared to the island-wide averages.
Dr. Chua Yang Liang, research head for Jones Lang LaSalle (JLL) South East Asia, said that “while more station boxes along the Circle Line will be completed during the next few quarters, we can expect similar increases in DC rates around them. The direct impact on the property market is minimal other than in redevelopment cases where DC rates are imposed. Nonetheless with the recent government policy, we can expect a more moderate collective sales market over the short term.”
The average increase in the commercial use group was calculated at around 1 percent, with areas like West Coast Road and Jurong East achieving the highest increase of 25 percent. This was supported by the strong interest by Lend Lease in Jurong Lake District when they bid for the mixed development site at Jurong Gateway Road for $650 psf ppr.
The industrial front, on the other hand, recorded a 10 percent increase led by Sembawang, Mandai and Woodlands. This was mainly attributed to the strong activity in the government land sales market and the positive outlook for the country’s industrial market.