Development Charge Rate Shoots Through the Roof
(TC is Sector 98 use group B2)
https://www.ura.gov.sg/Corporate/Guidelines/Development-Control/Planning-Permission/Folder/~/link.aspx?_id=654B550206B745E3BF80292AC9CBA29B&_z=z
Bloggers opinion (warning: may be completely off the mark)
The material date of determination of DP will be pegged to the date of Provisional Planning
Permission (PP)
Bloggers estimated DP = ~$318m and estimated LUP = $143m
Total payable by Buyer: $461m
I THINK the land value just shot up from $676 to $728 psfppr
Existing PR (plot ratio) is TBD
How much are SL paying per sq foot now?
ReplyDeleteCan SL appeal for backdated application which was delay ( DC increase )
ReplyDeletewill you pl ask SL why did they apply OPP in Dec 2017,but not earlier?
DeleteBlogger this is just estimated only isit?
ReplyDeleteSure
DeleteWhoa!....Akan Datang: Big Tsunami coming.
ReplyDeletehi may i know how do u get LUP 143 mil?
ReplyDeleteWhat's that saying, strike while iron is hot. This is the result of dragging, only to add cost. The land is scarcer.
ReplyDeleteIf the psfppr is $728 now, are you able to calculate how much Sim Lian have to sell psfppr to breakeven?
ReplyDelete" I THINK the land value just shot up from $676 to $728 psfppr "
ReplyDeleteREPLY: Meaning we will get higher price if we go round 4 ?
No. This means we will have to lower the asking price to attract developers as they need to pay more to the Government.
DeleteI think so too. So I don't mind R3 can go through successfully or not.
Deletere 8. It much depend on no. of units to be built.
DeleteFreehold properties no DC charges if I'm not wrong, whereas Leasehold properties face DC charges.The older the estate the higher the DC charges? So developers have the choice....pay and pay or no go (aborted) in my opinion or understanding about Enbloc matters with regards to DC?
DeleteDC is also for increase use of plot ratio rite
DeleteRe 8.4, yes you are wrong.
DeleteDevelopment Charge is the levy paid by the developer to the state for redevelopment to a more valuable i.e. higher plot ratio. This is imposed regardless whether the land is freehold or leasehold.
The DP system is a modification of the DC system for leasehold redevelopment. It is still based on the Table of DC rates. For DP, the DC rates will be adjusted to reflect the age of the leasehold land, using a table of leasehold values as a percentage (%) of freehold value.
Freehold obviously do not need the LUP
Hmmmm do you think Sim Lian can sell off the new development at such crazy prices? Currently the Santorini condo is going at around $1200 psf.
ReplyDeleteBut thats now prices. Prices will go up in 3 years time when the new condos are launched.
DeleteEven EC can sell 1200 above, TC sure can enbloc successfully. Where can you find so cheap land price now? If only wait and drag, how to develop? Developers are very smart. They need to store land to survive.
Deletethe increase in land value from 676 to 728 is just 7.7%, and actually gels with what Capitaland CEO mentioned that real estate prices may increase up to 10% in 2018. The writing was on the wall all along, and for sure developers knew it.
ReplyDeleteI did a quick comparison across in excel, comparing Sept 17 and March 18 DCs. The average increase is 23.2%. For TC, the increase is 25.0%.
There are places such as sector 19 and 23 (City area) which went up 37.5%, with the lowest increase at 11.76% sectors 53,74,78,80,82,83,85,92,93,107.
So the increase is across the board and not just for TC alone.
SL has to pay more may not kill the deal,but no. of units may .So long SL can sell 100 dollars psf in launch,its ok.
ReplyDeleteBUT THE average size of new units is a big concern.
So many hurdles: Increased DC charges, LUP? LTA roadblocks with regard to Traffic issues? BSD if applicable?....Biggest of it all SL conditional sales etc.???Wonder what next if dragged on to face increased GST hikes if any? Hard to digest.
ReplyDeleteis end march next rescission date that SL can walk away from the deal?
ReplyDeletemay SL shows her mercy by informing SP her intention. SP can prepare for next round...
It will be so sneaky if SL got all the approvals today....
ReplyDeleteIt doesn’t mean much. The TC was bid at a very low amount in the first place. Now all enbloc will face the same issue and GLS will not be lower priced. No one here caught the DC sneaking up as we focussed on LUP.
ReplyDeleteThe question then is whether the govt has sent enough “feelers” to developers that DC would be coming. And am 100% sure the hint was clear enough. SL and other developers could not possibly have been caught unaware and would have incorporated this increase even last August as they would have needed to consider the event of it going to High Court.
And don’t worry about prices being too high, because in Sept 2018, you can be sure enblocs like Tulip will experience another big jump.
If 'hint' was clear enough, then while others were decisive enough, SL sat on it and so suffer for it. Yes, the rates are applied across the board henceforth, but SL are competing with developers who benefited from the previous rates. It's a tough call to hang on to TC. Getting tougher by the day.
DeleteAlthough increase in LUP is est 60mil, SL should have expected this increase.
ReplyDeleteThis makes is so very clear that prices are going to rise....and the govt wants it to happen.
ReplyDeleteDon't agree. Remove cooling measures is quickest way to raise prices. Incr BSD runs counter with your reasoning of govt intent.
DeleteGovt wants a larger share of offshore developers contribution. Too bad some locals are collateral damage.
one bedroom of SL project will be selling 100k more than TAPESTRY,tks to 2200 units rule.THIS is caused by units area 18% bigger than TAPESTRY.
ReplyDeletei salute SL if he can proceed the deal.
*Tapestry Price inducations:*
1BR from $596K
1+S from $648K
2BR (603sqft) from $796K
2+S from $913K
2BR Premium from $920K
3BR from $1.15M
3BR Premium Flexi from $1.35M
4BR from $1.65M
4DK from $1.71M
5DK from $2.1M