The Singapore Land Authority (SLA) has announced an increase in Land Betterment Charge (LBC) rates, effective from 1 March to 31 August 2025. The revision, conducted biannually with the Chief Valuer’s consultation, sees an average rise across all sectors, with the most significant increase in landed residential properties.
The LBC rates for landed residential properties, categorised under Use Group B1, have seen a 2.9% increase. This follows a similar rise in the previous revision, despite a 3.5% decline in the landed price index in the second half of 2024. Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, noted that all 118 sectors experienced an increase in LBC rates, ranging from 2.6% to 3.7%.
Commercial properties, under Use Group A, experienced a 0.6% increase in LBC rates, a slower growth compared to the previous cycle’s 1.5%. The Orchard area, benefiting from retail demand, saw the most significant increases, with a notable transaction at ION Orchard setting a benchmark.
Non-landed residential properties, classified as Use Group B2, saw a stabilisation with a 0.3% increase, rebounding from a 5.4% decline in September 2024. The increase was primarily observed in nine out of 118 sectors, with notable interest in the River Valley Green site.
Hotels and hospitals, under Use Group C, also experienced a 0.6% rise, with 13 sectors seeing increases between 3.8% and 8.8%. This reflects the ongoing recovery in tourism and investor interest in converting properties into hotels or serviced flats.
Industrial properties, categorised as Use Group D, saw a marginal 0.1% increase, attributed to significant transactions such as Admirax and 21 Jalan Buroh. Only six out of 118 sectors experienced changes, with the rest remaining stable.
These revisions highlight the dynamic nature of Singapore’s property market, with varying impacts across different sectors. The changes reflect current market conditions and transactions, indicating a cautious yet optimistic outlook for the property landscape.
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