Land betterment charges up 4.1% on average for non-landed residential, 4% for landed residential uses

SINGAPORE – The Government has raised average land betterment charge (LBC) rates across most real estate sectors in its latest half-yearly update, with only the rates for the hotel/hospital/nursing home use group left unchanged.

Announced on Feb 27, the latest rates are for the six months starting on March 1. LBC rates were increased for residential, commercial, industrial and place of worship/civic and community institution uses.

Developers pay an LBC for the right to enhance the use of some sites or to build bigger projects on them. The rates are stated according to use groups across 118 geographical sectors in Singapore.

LBC rates for non-landed residential use have been raised by 4.1 per cent on average. The rates in 114 sectors have been raised by around 3 per cent to 23 per cent. There are no changes in the other four sectors.

For landed residential use, LBC rates have risen by 4 per cent on average. Rates have been raised for 93 sectors by around 3 per cent to 10 per cent, with no changes in the other 25 sectors.

LBC rates for industrial use have been raised by 3.2 per cent on average. All 118 sectors saw increases ranging from around 2 per cent to 9 per cent.

LBC rates for commercial use have gone up by 0.5 per cent on average. Twenty of the 118 geographical sectors will see increases of around 3 per cent to 4 per cent, with no change for the remaining 98 sectors.

For the place of worship/civic and community institution use group, LBC rates have increased by 3 per cent on average across all 118 sectors.

LBC rates are announced twice a year, on March 1 and Sept 1, 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. THE BUSINESS TIMES