Which sectors saw the steepest DC rate drops?

Development charges for sectors 100, 103 and 104 has been reduced 14.3% due to flagging bid prices.

Non-landed residential sites in these sectors were awarded at significantly lower prices from their values because of oversupply and fears of a prolonged downturn, said Colliers in a release.

"Despite the healthy buying momentum in the mass-market segment, a number of factors including an ample state land supply, concerns of a slowing economy amid global uncertainties as well as the possible bearing of the Additional Buyer’s Stamp Duty (ABSD) on the market, have resulted in developers becoming more cautious in land tender bids," it said.

"For example, four non-landed residential sites situated in the Upper Serangoon/Punggol areas in DC Sector 100 were awarded to developers from September to December 2011 at land prices of some 5.4% to 22.2% lower than the prevailing imputed land value for the sector. The State also sold another site located in the Kovan Road/Simon Road area off Upper Serangoon in Sector 104 in January 2012 at $507 per sq ft per plot ratio or 18.9% below the land value implied by the September 2011 DC rate for the sector. As such, the DC rates for these sectors – Sectors 100, 103 and 104 – have been reduced most significantly by 14.3% for the period from 1 March to August 2012," it added.

"At the same time, declines in luxury home prices and rents as well as the lack of interest for land in the high-end/luxury locations had resulted in few land transactions in these areas. Hence, as expected, the DC rates for the luxury enclaves, particularly sectors 39 to 47, as well as Sentosa Cove (Sector 117) have also been adjusted downward by as much as 6.5%," it said.

"Overall, the reduction in non-landed residential DC rates is expected to be welcomed by developers, although most of the sites that had been put up or planned for tender in the collective sales market this year is not expected to involve development charge," it said further.