Singapore hikes property development charges 31 Aug 2007 18:31
SINGAPORE, Aug 31 (Reuters) - Singapore said on Friday it will raise property development charges from Saturday to reflect the rising value of homes and offices in the city-state.
Firms building offices and malls will see the development charge rise by an average of 42 percent from July, while those developing condominiums will pay a charge that is 58 percent higher, the Ministry of National Development said.
The charge for houses will rise 11 percent while the charge for hotels and hospitals will increase by 23 percent.
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 percent of the rise in the site's estimated value.
Private home prices in Singapore rose 8.3 percent in the second quarter from January-March, according to government data, boosting earnings for developers like CapitaLand Ltd <CATL.SI> and City Developments Ltd <CTDM.SI>.
Singapore's property stock index <.PROP> has fallen 6 percent in the past month following a global credit squeeze, but remains 23 percent up since the start of the year.
((Reporting by Kevin Lim, editing by Neil Chatterjee; kevin.lim@reuters.com; Reuters Messaging: kevin.lim.reuters.com@reuters.net; +65 64035663)) Keywords: SINGAPORE PROPERTY/CHARGE
