Differential Premium (DP) calculation based on valuation method – Real estate for sale in Singapore
DP is based on 70% (before 18 July 2007 – 50%) of the enhanced in value arising from the grant of planning permission. Real estate for sale in Singapore.
Enhanced value = Development ceiling less Development baseline Development ceiling: Value at approved proposal
Development baseline: Value based on existing approved development.
Question: Residential land worth $4,000,000 is rezoned for retail development estimated to be worth $12,400,000. Calculate DP. (Lecturer shall go through the calculation with students in class)
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