Singapore’s Land Betterment Charge (LBC) rates have been revised, with commercial properties experiencing a modest 0.5% increase across 20 of 118 sectors. This adjustment, announced by Knight Frank Singapore, marks a slight rise from the 0.1% increase seen six months prior.
The residential sector saw more substantial changes. Landed residential properties (Use Group B1) experienced a 4% increase across 93 sectors. This aligns with the Urban Redevelopment Authority’s Price Index, which reported a 3.4% rise in landed home prices in the last quarter of 2025. The lowered interest rates have improved affordability, prompting increased sales activity, particularly in the S$3m to S$7m range.
Non-landed residential properties (Use Group B2) mirrored this trend with a 4.1% rise, notably in sector 97, which saw a 22.7% increase. This surge is attributed to a government land sale in Bedok Rise, awarded at S$1,330 per square foot per plot ratio in December 2025. The competitive bidding environment has driven up land prices, with top bids exceeding expectations.
Industrial properties (Use Group D) saw a 3.2% average increase, with significant transactions like the S$351m sale of a warehouse at Upper Thomson Road. Prime industrial assets continue to attract interest for their long-term value.
Lastly, LBC rates for places of worship and community buildings (Use Group E) rose by 2.8%, reflecting increased economic value in community uses post-pandemic. These revisions indicate a dynamic property market in Singapore, with implications for future development and investment strategies.
