Land Betterment Charge Rates for Non-Landed Residential Use to Rise

Collective Sales' Higher Land Values and More Optimistic Tender Bids Among Reasons

- Grace Leong

Higher land values recorded from recent collective sales and more optimistic bids in state land tenders in the fourth quarter of 2024 boosted land betterment charge (LBC) rates for non-landed residential use. These rates will rise for the next half year after a drop in the previous period, while those for landed residential will grow at a faster pace.

Developers pay an LBC for the right to enhance the use of some sites or to build bigger projects on them.

The latest LBC rates for the March 1 to Aug 31 period were announced on Feb 28, following a review by the Singapore Land Authority in consultation with the taxman's chief valuer.

The LBC rates are based on the chief valuer's assessment of land values and take into consideration recent land sales. For non-landed residential use, LBC rates will rise by 0.3 per cent on average after dropping an average of 5.4 per cent in the previous revision period from Sept 1, 2024, to Feb 28, 2025.

Analysts pointed to recent collective sales, including that of Thomson View Condominium which was acquired by a joint venture between UOL and CapitaLand for $810 million, or $1,178 per sq ft per plot ratio (psf ppr).