The Singapore Land Authority has announced revisions to the Land Betterment Charge (LBC) rates effective from 1 September 2026 to 28 February 2027. The adjustments, conducted biannually with the Chief Valuer, reflect changes in land values across various use groups, with notable increases in industrial and residential sectors.
The LBC rates for Use Group D (Industrial) saw the highest rise at 3.9%, driven by strong investor interest and portfolio deals. Residential landed properties (Use Group B1) followed with a 3.5% increase, whilst non-landed residential properties (Use Group B2) rose by 3.4%. The commercial sector (Use Group A) experienced a moderate 1.7% increase, with significant hikes in suburban areas like Siglap and Bedok South, attributed to major mall transactions.
Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, noted that the easing of LBC rate increases this cycle supports urban rejuvenation efforts. “Whilst increases in LBC rates typically raise redevelopment costs and compress developers’ margins, the easing in LBC rate increase this cycle bodes well for the rejuvenation efforts and should not dampen enbloc activities significantly,” she stated.
The revisions are expected to influence redevelopment strategies, particularly in the Central Business District (CBD), where commercial rates have remained unchanged since March 2024. The adjustments reflect ongoing investment activity and developer confidence, supported by resilient homebuying demand and lower borrowing costs.
As Singapore continues its urban renewal initiatives, the revised LBC rates will play a crucial role in shaping future development projects, balancing cost implications with the potential for asset rejuvenation.
