Development Charge updates as of March 1st 2012

A Recap – What is Development Charge?
Development charge is a tax on the enhancement in land value resulting from the State approving a higher value development proposal. (quoted from URA)

So what does this mean? It means that if you wish to build something on the land, improve the value by adding a building, an office, hotel, shopping mall etc, you need to pay a tax to the Singapore government. The calculation of this tax is not the topic of this post here. Its to highlight the changes to the DC which is done on a 6 month basis.

The Ministry of National Development has revised the development charges (DC) rates for the period from 1 March 2012 to 31 August 2012. The review is carried out on a half-yearly basis, in consultation with the Chief Valuer.
Group Type Average Change Remarks of Changes (if any)
Group A Commercial Increased by Average 6% Largest Increase of 52% in Sengkang/Seletar Area
Group B1 (landed) Not Changed
Group B2 (residential Non-Landed) Decreased by Aver of 3% Significant decrease in Punggol Town/Upp Serangoon Road, Hougang/Upp Paya Lebar/Toa Payoh/Bishan Area. Dropping by 14%
Group C (Hotel/Hospital) Average Increase of 15% Largest increase of 29% in the Alexandra / Redhill / Tiong Bahru / Bt Merah / Telok Blangah area, Pasir Ris/Loyang/Upp Changi, Ulu Pandan/Holland Area
Group D (Industrial/Warehouse) No Change
Group E (Place of workship/Civic & community Institution) No Change
Group F (Open Space) No Change
Group G (Agriculture) No Change
Group H (Drain/Road etc) No Change


Group Classification Description of Purposes for which development is permitted or to be authorised
A Shop, office, association office, cinema, place of entertainment, clinic, medical suite, restaurant, petrol station, auto-service centre, commercial garage, market, sports and recreation building
B1 Residential (landed dwelling-house)
B2 Residential (non-landed residential building)
C Hospital and health centre, hotel room and hotel-related uses
D Industrial, warehousing, science park, business park, transport depot, airport, dock, port uses, utility installation, telecommunication infrastructure, Mass Rapid Transit Station, Light Rail Transit Station
E Place of worship, community building, community sports and fitness building, educational and institutional uses, government building
F Open space, nature reserve
G Agriculture
H Drain, road, railway, cemetery, Mass Rapid Transit Route, Light Rail
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