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"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

DC RATES MAR 2011

With regard to TC (Group B2, Sector 98):










Hotel use leads hike in DC rates
by Kalpana Rashiwala 

THE government yesterday announced the biggest hikes in average DC rates for hotel and commercial uses since 2007.
The increase for landed residential use, at 18 per cent, was the biggest in more than a decade, according to Jones Lang LaSalle's analysis.
Hotel use led the hike in development charge rates which take effect from today.
The average DC rate for this use has escalated about 27 per cent, reflecting the buoyant hotel business and strong bids for hotel development sites in recent months.
As predicted by property consultants, for the residential segment, the authorities have raised the average DC rate for landed use by a bigger percentage quantum than for non-landed use, at 18 per cent and 11 per cent respectively, given the stronger expansion in landed home prices last year compared with condominium/apartment prices.
The government yesterday also announced average DC rate increases of 13 per cent and 8 per cent respectively for commercial and industrial uses.
DC is payable to the state in exchange for the right to enhance the use of some sites or to build bigger projects on them. The Ministry of National Development, in consultation with the Chief Valuer, revises DC rates twice a year, on March 1 and Sept 1. The revisions are based on current market values.
'The DC revision exercise is the Chief Valuer's way of providing a more accurate representation of current land prices,' as CB Richard Ellis executive director Li Hiaw Ho puts it.
Jones Lang LaSalle's South-east Asia research head Chua Yang Liang said: 'The impact of this latest round of revisions is unlikely to dampen or stir market sentiments . . . not every development project will be affected.'
For hotel use DC rates, the biggest increase of 39.3 per cent, according to Jones Lang LaSalle's analysis, was in the Orchard/ Somerset and Tanglin/Cus-caden vicinities - home to many hotels in the shopping belt.
The Robinson Road/Ce-cil Street area, too, saw a 39.1 per cent growth, not surprising given the record hotel land price of $1,072 per square foot per plot ratio (psf ppr) fetched earlier this year for the Ogilvy Centre site. That land bid was 214 per cent above the land value implied by the Sept 1, 2010, hotel use DC rate for the location.
Clarke Quay/Clemenceau Avenue/Havelock Road - where a hotel site was sold in September last year at a land price 98 per cent above its Sept 1, 2010, DC rate implied value - also saw a 39.1 per cent DC hike. Hotel rates islandwide had been left untouched in the previous revision on Sept 1, 2010.
For commercial use, the biggest rise in DC rate of 29 per cent was in the geographical sector that includes the 'white' site above Tanjong Pagar MRT Station which GuocoLand clinched for $1,006 psf ppr late last year.
In the industrial category, the steepest climb was 19.6 per cent, in the geographical sector that includes Tuas, Jurong and Woodlands.
A 30-year leasehold plot at Pioneer Road North was sold by the state in December at a land price which was about 238 per cent above the land value implied by the Sept 1, 2010, industrial use DC rate for the location.
The second highest rate hike for industrial DC rates of 13 per cent was in the Paya Lebar/Ubi area.
As for landed residential use, the steepest hike of 25 per cent was in Sector 108, which covers Holland Road, Sixth Avenue, Eng Neo Avenue, Adam Road and Farrer Road.
Analysts highlighted two Good Class Bungalow (GCB) transactions at 61 Belmont Road and 18 Astrid Hill, at land prices which were at least double the Sept 1, 2010, DC rate for the sector, as likely triggers for the latest rate hike in the sector.
The effect also rubbed off on the neighbouring sectors 68 and 69, which include the Botanic Garden/ Gallop Road and Ridout/ Peirce Hill/Swettenham Road vicinities respectively, each posting a 23.5 per cent increase, based on JLL's numbers.
Increases in landed residential DC rates were recorded in 116 of the total 118 geographical sectors that Singapore is split into for DC computation. Rates were left untouched in Jurong Islands and other nearby islands, and Pulau Ubin/Tekong. The smallest gain of 7.7 per cent was in Sector 67, which includes the Nassim, Orange Grove and Ladyhill locale.
Credo Real Estate managing director Karamjit Singh said: 'Many GCB Areas saw hikes in landed residential DC rates because over the past six months, GCB prices have risen the most among various property types. However the impact of the hikes would not be felt within the GCB market itself since DC is not payable for a plot that is redeveloped into a single dwelling unit such as a bungalow. Rather, the effect is more likely to be felt among developers of other mixed landed properties near the GCB Areas which have seen a DC rate rise.'
For non-landed residential use, the biggest rate hike was in the Punggol/ Upper Serangoon Road area, followed by Braddell/ Potong Pasir/ Bartley and Bishan/Ang Mo Kio. Analysts attributed this to recent sales of sites in these locations, including by the state.
The Business Times - 1 Mar 2011 


MND revises DC rates
by Julie Quek 
SINGAPORE - The Ministry of National Development (MND) has revised the rates for development charges (DC) for the next six months, as part of its half-yearly review.

The increases in the rate of DC, the tax payable by the developer when a property site is developed into a more valuable project, will take effect from March 1.

On average, the rates for landed residential property have increased by 18 per cent, with the largest increase of 25 per cent in Sector 108, which includes Holland Road, Sixth Avenue, Eng Neo Avenue, Adam Road and Farrer Road areas.

Some analysts, like Ms Callie Liew, COO of the HSR Property Group, said the increase will lead to a corresponding increase in land costs and expect developers will be "more measured" in their bids going forward.

However, other market watchers said the increase in DC rates is unlikely to have a major impact on collective sales.

Dr Chua Yang Liang, head of research, South-East Asia, Jones Lang LaSalle, said: "DC, as a component of overall development charges, is actually quite a small component. And DC charges are only imposed on those developments that have the potential to be over and above what the site has been approved for."

Analysts estimated that about 50 to 60 per cent of en bloc projects have no development charge component. They said that only projects with a higher development charge component of 5 per cent or more of total land value, such as land sites re-zoned for a different use, will likely feel a significant pinch from the latest increase.

Meanwhile, DC rates for non-landed residential properties have also been increased, by an average of 11 per cent. The largest increase is 17 per cent in Sector 100, which includes Upper Serangoon Road and Punggol.

Analysts said that before the DC rates are revised, the Chief Valuer takes into consideration how the market has behaved over the previous six months.

Dr Chua said: "It depends very much on where the market is heading, whether there are transactions recorded over the next six months. If there are values that rise, then chances are DC rates may rise accordingly."

The rates for commercial development have increased by an average of 13 per cent, with the largest increase of 29 per cent in Sector 9, which includes Peck Seah Street, Maxwell Road and the Anson Road area.

For hotels and hospitals, the rates have gone up by an average of 27 per cent, while development charges for industrial and warehousing use have been raised 8 per cent on average.

The ministry said the DC rates for other land uses - which include places of worship, open space, agriculture, drain and roads - have not changed. It added that if there is any disagreement over the development charges payable, developers and owners can opt for a case-by-case valuation by its Chief Valuer.
Today - 01 Mar 2011 

11 comments:

  1. not scaring you guys but the DC rates doubled from 2007....

    developer will have to pay more to redevelop TC land as each year progresses.

    some food for thought.

    ReplyDelete
  2. It's not as if it is the only thing to rise and everything else stood still. What else has increased? How about the price psf after development, the population of Singapore, investors looking for a place to park their money, record profits declared by developers for 2010.

    This modest increase (and sector 98 was spared the worst) adds about another $14m to the DC of TC. A small matter for a developer when he will have 2 million sqaure feet of strata area to sell later.

    Don't tell TC owners to lower their RP - tell the developer-buyer to add $7 psf in his new development; I don't think the new buyer will notice the difference...

    ReplyDelete
  3. erm.. hozabout cooling measures and more to come... restriction to new hdb owners to purchase pte property... record no of GLS.... looming incease in interest rates... further increase in TC.... restriction in new PRs...

    let's be balanced.

    ReplyDelete
  4. No need to be scared.
    Developers always got money to pay DC, see other posts, DC is only a small component, hence will not affect en-bloc much.
    So no need to be scared.

    ReplyDelete
  5. thanks.. saw an ad for sale of a TC unit in ST classifieds today... asking for 1m-1.2m. Good buy?

    ReplyDelete
  6. Ref DC Rates Doubled From 2007
    Pls dont worry about developer they are the one who can look their concern.The list goes on.....and on eg interest rates, foregin workers levey, building material supplies. TC owner concern is to ensure MA, SC and their appointed team carried out the sales with our interest.

    ReplyDelete
  7. Cooling measures are just short term. Land is permanent & here to stay. Without lands, developer will go out of business. We have upper hand, dun worry. Ignore all those scare tactics.

    ReplyDelete
  8. "erm....hozabout cooling measures..."
    The cooling measures as MBT say is only to prevent bubble, it is not to crash the property market.
    If market crash due to cooling measures, Singaporeans will complain, government know.
    Cooling measure means property will still increase - slower and sustainable.

    Restrictions for new HDB owners to purchase private property, means the government trying to prevent Singaporeans from upgrading, PAP will lose more votes; so this won't happen.

    More GLS, no need to worry, TC is very well located, 2 + 1 MRT, shopping malls, market, Huge land, International schools, University, Polytechnic... just name a few. developers likes TC's location, but they want it on cheap sale to earn more.

    Looming interests rates worries are meant for flippers, for long term owners no need to worry.

    What is further increase in TC?
    What has restrictions in PR got to do with private property? TC is not HDB.

    Want to scare people to short sell?
    Get your facts right, not speculate the 'What if...'

    ReplyDelete
  9. today's ST also mentined that there will be huge supply coming on from 2012-2013. Nomura reseached calls it a 'supply tsunami'. Do you think this will affect our enbloc? Is it the right time to sell?

    ReplyDelete
  10. Better to fix a realistic RP. If developers clamor for the site, they will bid higher than the RP.We can still get the best price during the tender exercise. If the RP is unrealistically high, its a waste of everybody's time.

    ReplyDelete
  11. This is the kind of attitude that is most dangerous in en bloc... the idea that there must be a sale at the end of the process otherwise it is a waste of time.

    It is better to waste time than to sell at a disappointing price.

    If the sale committee are worried about their time being wasted then they are most unsuited for the job

    It is vital that when SC-fatigue sets in, their initial objective does not dissolve into a kind of eagerness to get the whole thing over and done with as soon as possible. A sell and be damned mentality.

    It does not matter if time in wasted - we just continue to live on here in our homes - absolutely nothing is lost if we fail.

    The desperadoes, investors and bullies in the estate might think otherwise, of course..

    ReplyDelete