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Recent Development Charges Cut for Certain Property Types in Singapore


[Check out the infographic at the end of this article]


On August 31 2020, The Ministry of National Development (MND) announced that development charge (DC) rates for the period September 1, 2020 to February 28, 2021, will be revised downwards across multiple property types by up to 7.8%. Each year, MND revises the rates on March 1 and September 1, in consultation with the taxman's chief valuer. This is the first time that DC rates for commercial land have been lowered since they began trending up in September 2016.


DC rates for Use Groups A (Commercial), B2 (Residential, non-landed), C (Hotel/Hospital), D (Industry) have decreased whereas DC rates for Use Groups B1 (Residential, landed), E (Place of Worship / Civic and Community Institution), and 3 other Use Groups F, G and H remain unchanged. The full DC rates are available here.


The reduction in DC rates will be particularly helpful in revitalising the Orchard Road and Marina Bay areas, which have been badly affected by the Covid-19 pandemic. With worldwide travel restrictions and no tourists arriving and the increased popularity of online shopping, businesses in these two areas have seen a huge decrease in human traffic and sales activities. The drop in sales this year is in stark contrast to 2019 when hospitality transactions hit a record $5.7 billion.


For residential and industrial properties, the smaller declines in DC rates is due to the fact that these properties have been relatively more resilient during the pandemic. It also shows that the Singapore residential property market is one of the most attractive and sought after by savvy investors.


The largest cuts in the latest half-yearly review were for two main property use groups that have been most affected by the Covid-19 pandemic - hospitality and medical; and commercial. Charges for hotel and hospital development use have been slashed by an average 7.8 per cent, while those for commercial use were reduced by 3.6 per cent on average.


Use Group A (Commercial)


The DC rates for Use Group A (Commercial) have decreased by 3.6% on average. 110 out of the 118 sectors have reduction in DC rates ranging from 3% to 7%. Rates are unchanged for the remaining eight sectors. The largest decrease of 7% applies to the following sectors:

  • Sector 11 (Shenton Way/ Straits Boulevard/ Marina Boulevard/ Raffles Quay)

  • Sector 12 (Bayfront Area/ Marina Bay Sands)

  • Sector 41 (Cairnhill Road/ Orchard Road/ Somerset Road/ Exeter Road/ Buyong Road/ Cavenagh Road)

  • Sector 42 (Scotts Road/ Orchard Road/ Orchard Boulevard/ Bideford Road/ Nutmeg Road/ Mount Elizabeth/ Claymore Road

Use Group B2 (Residential, non-landed)


The DC rates for Use Group B2 (Residential, non-landed) have decreased by 0.8% on average. 34 out of the 118 sectors have reduction in DC rates ranging from 2% to 3%. Rates are unchanged for the remaining 84 sectors. The largest decrease of 3% applies to the following sectors:

  • Sectors 53 to 59 (Jalan Besar/ Lavender Street/ Kallang Bahru/ Bendemeer Road/ Upper Boon Keng Road/ Geylang Bahru/ Serangoon Road/ Balestier Road/ Tessensohn Road/ Race Course Road/ Thomson Road/ Mandalay Road)

  • Sectors 72 to 75, 78 to 79 (Alexandra Road/ Prince Charles Crescent/ Delta Road/ Jalan Bukit Ho Swee/ Zion Road/ Kim Tian Road/ Tiong Bahru Estate/ Outram Road/ New Bridge Road/ Kampong Bahru Road/ Telok Blangah Rise/ Bukit Purmei Road/ Lower Delta Road/ Jalan Bukit Merah)

  • Sector 80 to 88 (Lower Delta Road/ Kim Tian Road/ Jalan Bukit Merah/ Alexandra Road/ Tiong Bahru Road/ Redhill Road/ Lengkok Bahru/ Leng Kee Road/ Ayer Rajah Expressway/ Depot Road/ Telok Blangah Road/ Henderson Road/ Telok Blangah Way/ Mount Faber/ West Coast Highway/ Keppel Bay/ Labrador Nature Reserve)

  • Sector 92 (Guillemard Road/ Mountbatten Road/ Old Airport Road/ Dunman Road/ Tanjong Katong Road/ Haig Road/ Geylang Road)

  • Sector 101 to 103 (Aljunied Road/ Paya Lebar Road/ Jalan Eunos/ Macpherson Road/ Geylang Road/ Guillemard Road/ Sims Way/ Hougang Avenue 3/ Upper Paya Lebar Road/ Bartley Road/ Braddell Road/ Marymount Road/ Thomson Road)

  • Sector 111 (West Coast Highway/ Clementi Road/ Commonwealth Avenue/ Alexandra Road/ Labrador Villa Road)

Use Group C (Hotel/Hospital)


The DC rates for Use Group C (Hotel/Hospital) have decreased by 7.8% on average. 116 out of the 118 sectors have reduction in DC rates ranging from 4% to 15%. Rates are unchanged for the remaining two sectors. The largest decrease of 15% applies to the following sectors:

  • Sector 3 (Hill Street/ Victoria Street/ Seah Street/ Beach Road/ Ophir Road/ Nicoll Highway/ Esplanade Drive/ City Hall Area)

  • Sector 5 (Nicoll Highway/ Suntec City Area/ Ophir Road/ Raffles Avenue/ Promenade Area)

  • Sector 6 (Collyer Quay/ Fullerton Road)

  • Sector 11 (Shenton Way/ Straits Boulevard/ Marina Boulevard/ Raffles Quay)

  • Sector 12 (Bayfront Area/ Marina Bay Sands)

  • Sector 41 (Cairnhill Road/ Orchard Road/ Somerset Road/ Exeter Road/ Buyong Road/ Cavenagh Road)

  • Sector 42 (Scotts Road/ Orchard Road/ Orchard Boulevard/ Bideford Road/ Nutmeg Road/ Mount Elizabeth/ Claymore Road)

  • Sector 43 (Tanglin Road/ Cuscaden Road/ Orchard Boulevard/ Grange Road)

Use Group D (Industry)


The DC rates for Use Group D (Industry) have decreased by 0.9% on average. 52 out of the 118 sectors have reduction in DC rates ranging from 2% to 3%. Rates are unchanged for the remaining 66 sectors. The largest decrease of 3% applies to the following sectors:

  • Sector 99 (Pasir Ris/ Loyang/ Changi Area)

  • Sector 100 (Tampines Road/ Hougang/ Punggol/ Sengkang Area)

  • Sector 114 (Boon Lay/ Jurong West/ Pioneer/ Tuas/ Sungei Kadut/ Choa Chu Kang/ Lim Chu Kang Area)

  • Sector 115 (Mandai/ Woodlands/ Sembawang/ Yishun Area)

  • Sector 116 (Jurong Island)

Whether the latest revision to the DC rates will stimulate more land sales or spur developers to increase their bids remains to be seen, as the impact of Covid-19 and its effect on the economy and geopolitical issues are still quite uncertain.


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