UPDATED: The development charge (DC) rates paid by developers to enhance a site or build bigger projects on them were trimmed by the Ministry of National Development (MND) for the period of 1 March to 31 August 2016.
The review is carried out on a half-yearly basis, with consultation from the Chief Valuer, said the MND.
Desmond Sim, Research Head at CBRE, said the consultancy is unsurprised by the downward revision in rates.
“This is on the back of a softening real estate market, both on the commercial occupier end and a general weakness on the residential front, due to the cooling measures.”
The DC rates for the industrial sector fell the most by an average of three percent. The largest decline of 16 percent was seen in areas such as Jurong West, Tuas and Lim Chu Kang.
The commercial and non-landed residential sectors also saw corrections in their DC rates, by an average of two percent and one percent respectively.
For the residential sector, the largest decrease of four percent applies to a number of areas including Bukit Timah, River Valley Road and Sentosa.
“Any further corrections in future revision of DC rates could encourage owners to intensify use and unlock the potential of the land,” added Sim.