The land betterment charges (LBC) for September 2025 have seen an average increase of 0.7% for the B2 (non-landed) use group, according to Huttons Asia. This adjustment comes amidst a backdrop of renewed optimism in the property market, driven by Singapore’s stronger-than-expected economic performance in the first half of 2025 and lower interest rates.
The most significant increases in LBC were observed in sectors 96, 89, and 90, with rises of 15.4%, 12.1%, and 12.1% respectively. The property market’s buoyancy has been reflected in robust sales at recent launches, prompting developers to actively replenish their land banks. This has resulted in intensified competition in Government Land Sales (GLS) tenders, with more bidders participating than the usual three, leading to higher bids.
For Group B1 (landed) properties, the LBC rose by an average of 0.4%, attributed to a surge in high-value transactions in the Good Class Bungalow (GCB) market. Notably, 11 GCB deals were recorded in the second quarter of 2025, compared to just two in the first quarter. The largest transaction was a GCB in Caldecott Hill Estate, sold for $58 million (£58 million) to parties linked to the founders of the Koufu Group.
Looking ahead, developers are expected to remain active in GLS tenders, with sites at Chencharu Close, Hougang Central, Telok Blangah Road, and Tanjong Rhu Road anticipated to attract competitive bids. This could potentially lead to higher LBC rates in future reviews.
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