Land betterment charge rates revised Sep 2022 : The Singapore Land Authority (SLA) has announced the revision of land betterment charge (known as LBC) rates for the period of Sept 23 to 28 Feb, 2023.
Land betterment charge rates revised Sep 2022 : Land betterment charge rates changes
The revision follows the Land Betterment Charge Act which went live on Aug 1. This law allows for the consolidation of developments charges for the enhancement of land value in Singapore.
Previously, owners had to apply to SLA for the payment of differential premium, and then separately to the Urban Redevelopment Authority (URA) for the payment of development charge (DC) or temporary development levy (TDL) for proposals for a land or property that has an enhancement in land value.
What are the changes in Land Better Charge
The new LBC regime replaces the DC, TDL and differential premium regimes.
The DC table of rates is replaced with the LBC table of rates, which will continue to be revised on a half-yearly basis. The revision in LBC rates comes on the back of a strong pick-up in en bloc activity following the last review of the DC table of rates (under the previous regime) done in March.
Non-Landed Residential Properties Land Betterment Charges
Non-landed residential properties saw the highest increase in LBC rates, rising by 12.9% on average. 116 out of the 118 geographical sectors saw an increase in LBC rates ranging from 6% to 20%. The largest increase of 20% applies to sector 113, which covers Yuan Ching Road, Corporation Road, Jurong West Ave 2, PIE, KJE, Choa Chu Kang Ave 1, Choa Chu Kang Way, Choa Chu Kang Road, Woodlands Road, Upper Bukit Timah Road, the Bukit Batok area and the Bukit Panjang area.
Landed Residential Properties Land Betterment Charges
For landed residential properties, the LBC rates have increased by 10.2% on average. 116 out of the 118 geographical sectors saw an increase in LBC rates ranging from 9% to 14%. The largest increase of 14% applies to sector 67, which covers Cluny Road, Napier Road, Tanglin Road, Anderson Road, Stevens Road and Dalvey Road. These are the prime landed properties areas in Singapore
Commercial Properties Land Betterment Charges
For commercial properties, LBC rates have increased by 5.4% on average. 116 out of the 118 sectors saw an increase in LBC rates ranging from 3% to 8%.
Industrial Properties Land Betterment Charges
Meanwhile, LBC rates for industrial rates rose by 2.3% on average. 94 out of the 118 sectors saw an increase in LBC rates ranging from 2% to 5%, with the remaining 24 sectors seeing no change.
All these changes are quite in line with the very active property market in Singapore today.
