The Ministry of National Development just revised the Development Charge
Every half a year, the Ministry of National Development unrolls a consultation with the Chief Valuer on various subjects. The Development Charge, or DC, was among the aspects discussed and the results led to a revision of this particular charge. Thus, the development charge for both the Groups A, which are the commercial developments and B2, which represent the non-landed residential developments, has increased after the previously mentioned consultation. For the other groups listed by the Ministry of National Development, this particular charge remained unchanged, so it will stick to the same values as it did so far.
But, just how much the Development Charge increased from the A and B2 group? For the A Group, representing the commercial developments, the DC values increased, on average, with 2.7%. More precisely, out of the total of 118 sectors available, 41 of them suffered increases ranging between 4 to 16%. Still, this also means that the rest of the 77 sectors will remain unchanged, so the charge will be the same as it was in this case. The biggest increase, of 16%, will be applied to Sectors 1, 2, 3, 5, and 6.
The B2 group, however, which is the group of non-landed residential developments, got an even bigger increase. Thus, on average, the developments in these groups will now have to face an increase of 22.8%. In this case, out of the total of 118 sectors, a number of 116 will deal with increases ranging between 12 to 38%. Only 2 sectors will keep its Development Charge unchanged in this particular group. In case you are wondering when these changes will become effective, it is worth knowing that they became active starting with the 1st of March 2018.
All cases that will obtain the Provisional Permission or additional extensions will be subjected to these set rates of the DC. You can find both the revised rates and groups table, adjusted and revised, on the website of the Ministry of National Development, under the form of appendixes. In case owners and developers notice any differences between the DC rates that were calculated for their properties or developments and the values mentioned in the Use Groups table, it is possible to schedule an evaluation meeting with the Chief Valuer. This way, the case will be searched in detail to see which triggered the differences that emerged, according to the active Planning Act.