The Singapore Land Authority has announced revised Land Betterment Charge (LBC) rates for the period from 1 March to 31 August 2025, with notable increases across several property categories.
The most significant change is seen in the Landed Residential (B1) sector, where all 118 sectors experienced an increase in rates, ranging from 2.6% to 3.7%. This adjustment reflects the strong upward pressure on the landed housing market, according to Dr Chua Yang Liang, Head of Research and Consultancy at JLL Singapore.
The LBC rates for other sectors also saw upward adjustments, albeit to a lesser extent. The Commercial (A) sector recorded a 19% increase, whilst the Hotel (C) sector saw an 11% rise. The Industrial (D) sector remained relatively stable, with only a 0.1% average adjustment across a few sectors.
Dr Chua noted that these changes are based on transactional evidence and reflect the current mood in the Singapore land market. “The effect of this latest change should not adversely impact the overall market activities,” he stated, highlighting that the LBC primarily affects developments with increased development intensity and land values.
Tan Hong Boon, Executive Director of Capital Markets at JLL, added that whilst the collective sale market has seen some successes, the recent LBC adjustments are unlikely to significantly alter market trends or investor confidence. He emphasised the importance of realistic pricing for collective sale sellers, given the current supply of Government Land Sale sites.
Overall, the revised LBC rates underscore the ongoing demand and valuation trends in Singapore’s property market, with implications for future investment activities.
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