Singapore has announced an increase in land betterment charge (LBC) rates for the period from September 2026 to February 2027, affecting several use groups including commercial, residential (both landed and non-landed), industrial, and civic institutions. Mark Yip, CEO of Huttons Asia, attributed the higher rates to growing confidence and demand for properties in Singapore, a major global financial hub.
The LBC for non-landed residential properties (Use Group B2) saw an average increase of 3.4%, marking the fourth consecutive rise. This increase, however, is at a slower pace compared to the previous six months. Notably, 70 out of 118 sectors experienced increases ranging from 0.9% to 29.1%. The landed residential sector (Use Group B1) also saw a 3.5% increase, with 108 sectors reporting rises between 1.8% and 7.9%.
Developers have shown keen interest in government land sales (GLS) sites, ensuring business continuity for the next three years. Sites such as Berlayar Drive, Dover Drive, and River Valley Green have seen higher bids. Meanwhile, Loyang Valley was the only successful collective sale site.
Yip noted that landed home prices have surged over 3.5% in the past six months due to limited land supply and increased wealth in the market. High-value transactions in areas like Nassim Road and Cluny Hill have contributed to this trend.
Looking ahead, potential interest rate hikes by the US Federal Reserve could raise development costs. Recent policy changes in the Housing Development Board (HDB) and private residential markets may also influence market activities. The lifting of the 15-month wait-out period could lead to wealth redistribution from private property owners to the HDB resale market, whilst changes in income ceilings for Build-To-Order (BTO) and Executive Condominium (EC) buyers may adjust demand. Despite these changes, Yip believes that realistic pricing and location remain crucial for successful collective sales.
