The latest development charge (DC) rates for the period of 1 March 2011 to 31 August 2011 have seen an across-the-board gain in all real estate segments, said DBS.
The hotel segment saw the largest increase in DC rates at an average of 27 percent, with Orchard, Clarke Quay, Marina Bay and Sentosa seeing the steepest hikes of 38 to 39 percent.
The DC rates for hotel sites increased by about 26.7 percent, compared to the past six months, when DC rates remained unchanged, said Li Hiaw Ho, Executive Director of CB Richard Ellis (CBRE) Research.
The sectors with the largest increase in DC rates are concentrated in the Clarke Quay, Central Business District (CBD), Orchard and Marina Bay areas. CBRE said this is hardly surprising, as many hotel sites in these areas sold under the GLS programme saw eager bidders.
Meanwhile, the commercial land segment saw an average DC rate increase of 13 percent, led by the Tanjong Pagar and Marina Bay areas, which saw a 29 percent increase.
Landed residential DC rates rose 18 percent, the highest semi-annual increase in more than a decade, while the non-landed residential segment saw an 11 percent hike in DC rates. Industrial DC rates jumped eight percent on average.
The latest adjustment will likely have a neutral impact on market sentiment and the real estate market, said DBS.
However, there could be some potential backlash to en bloc transactions that need DC payments, including new en bloc transactions to be launched on the market and those which have been transacted but have not obtained DC charges, it added.