The current collective sale market is unlikely to be derailed by the average 22.8 per cent hike in DC rates for non-landed residential use in the next six months, say property consultants. However, they say the latest set of DC rates, payable by developers seeking to enhance the use of a site or to build a bigger project on it, could tame developers’ land bids. Some en bloc sellers may also need to rethink their price expectations. JLL senior consultant Karamjit Singh said that generally, in about 20 per cent of en bloc sales, the DC quantum makes up more than 5 per cent of the total land cost. “I think that the residential property market is not going to tank for a while, so most of the upcoming collective sales – so long as they are sensibly priced – should be able to find takers,” said Mr Singh. ZACD Group executive director Nicholas Mak argued that as the en bloc sale market is gradually turning into a buyers’ market, some developers are more likely to lower their bids.... Continue Reading