Land betterment charges up by 3.4% on average for non-landed residential, 3.5% for landed residential uses

The Singapore government has increased land betterment charge (LBC) rates in the majority of property sectors as part of its latest half-yearly review. However, rates for the use group that includes hotels and hospitals remained unchanged. These new rates are effective from September 1 and apply to residential, industrial, commercial, and places of worship/civic and community institution uses.

Developers are required to pay LBC for the right to enhance the use of certain sites or to construct larger projects on them. LBC rates are published twice a year, in March and September, after a review by the Singapore Land Authority (SLA) and the taxman’s chief valuer. The rates are determined based on the CV’s estimation of land values and are influenced by recent land sales.

LBC rates for landed residential use have increased by an average of 3.5%, with rates in 108 sectors being raised by 2-8%. No changes were made to the remaining 10 sectors. For non-landed residential use, LBC rates have gone up by an average of 3.4%, with rates in 70 sectors being increased by 1-29%. There have been no modifications in the other 48 sectors.

LBC rates for industrial use have risen by an average of 3.9%, with all 118 sectors experiencing a 2-10% increase. Commercial use LBC rates have been raised by 1.7% on average, with rates in 46 sectors rising by 3-19%, while the remaining 72 sectors have remained the same. The SLA announced that place of worship/civic and community institution LBC rates were increased by an average of 2.9% across all sectors to "keep pace with the overall growth in land values."