1st step to cool property market
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Many expect gov will cool down property market.
Today is the day.
18 July 2007,
Revision of Development Charge (DC)The Ministry of National Development announced today that the Development Charge (DC) rates will be revised from the current 50% of the appreciation in land value to 70%......
2.Some expect gov will not take action until casino completed.
The revised rates will be effective from 18 July 2007....
Revision of the Development Charge rates
DC rates are set based on the principle of sharing of enhanced land value. Currently, DC rates are pegged at 50% of the enhancement of value. The current sharing formula of 50/50 is a result of an adjustment made during the recession in 1985.
The DC was lowered from 70% to 50% in 1985 to avoid eroding the share of value enhancement that accrued to developers in a declining market. With the current buoyant property market, the converse is true. Thus, the Government has decided to reinstate the DC to its original rate at 70%. .....
They are wrong. -
time for the government to make a killing
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If majority of citizens do not benefit from the recent booms in property which was entirely or largely concentrated in certain projects or segments of the property market, then it is a good move to use Development Charge wisely as a more effective tool to level the playing field and prevent runaway of the economy to benefit the rich and the upper echelon of society.
Let majority of citizens just have their affordable housing and avoid hyping up the property market which would lead to further widening of the rich and poor divide.
Remember, many senior citizens are suffering from lack of retirements funds to see through their twilight years. What is a government for if not to look after majority of citizens (or it is only to look after itself first and not the citizens) even though it is conceded that with the GRC they are not too worried about perpetuating their own succession.