Source : The Business Times, August 31, 2007
SINGAPORE - Singapore said on Friday it will raise property development charges from Saturday to reflect the rising value of homes and offices.
Firms building offices and malls will see the development charge rise by an average of 42 per cent from July, while those developing condominiums will pay a charge that is 58 per cent higher, the Ministry of National Development said.
The charge for houses will rise 11 per cent while the charge for hotels and hospitals will increase by 23 per cent.
The government imposes a development charge whenever it approves plans that result in an enhancement in the land value.
The tax is aimed at creaming off about 70 per cent of the rise in the site's estimated value.
Private home prices in Singapore rose 8.3 per cent in the second quarter from January-March, according to government data, boosting earnings for developers like CapitaLand Ltd and City Developments.
Singapore's property stock index has fallen 6 per cent in the past month following a global credit squeeze, but remains 23 per cent up since the start of the year.
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