The Singapore Land Authority has announced a revision in the Land Betterment Charge (LBC) rates, effective from 1 September 2025 to 28 February 2026. The changes, determined in consultation with the Chief Valuer, show varied increases across different use groups, with the most significant rise seen in Use Group E, which includes places of worship and civic institutions, at 2.9%.
The LBC rates for Use Group D, covering industrial properties, rose by 1.6% on average. This increase follows a period of stability and is attributed to several large transactions that have highlighted the asset class’s attractive yields. Use Group B2, which includes non-landed residential properties, saw a 0.7% increase, reflecting stronger participation in state land tenders and a rebound in new home sales due to lower interest rates.
In the commercial sector, Use Group A experienced a marginal rise of 0.1%, a slowdown from the previous 0.6% increase. Notably, only four out of 118 sectors saw a 3.3% increase, with the rest remaining unchanged. Meanwhile, Use Group B1, which pertains to landed residential properties, saw a modest 0.4% increase, indicating rising demand in traditional landed enclaves.
Tricia Song, CBRE Head of Research for Southeast Asia, commented on the revisions, noting that the adjustments reflect ongoing trends in the real estate market. The revisions are part of a regular half-yearly review process aimed at aligning LBC rates with current market conditions. The next review is expected in March 2026.
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