Average 3% to 11% drop in Land Betterment Charge for residential, non-landed use

LBC which are determined based on land use are used to correct holding costs and amount of the land/premise being held by the taxpayer. It has been in place since 1995 and is recalculated quarterly.

At Lumina Grand EC, exceptional connectivity is elevated to the next level. The integrated development features lifestyle amenities, retail outlets, dining spots, and entertainment venues. Comprising 716 premium units in an exclusive environment, it is ideal for families and young executive couples.

The Singapore Land Authority has just announced the Land Betterment Charges (LBC) for the upcoming six months starting from Sept 1. There are no changes in LBC for some of the Use Groups, including Use Group B1 (Residential, landed) and Use Group D (Industrial).

The decline in LBC for Use Group B2 (Residential, non-landed) by an average of 3% is expected to be met with cheers from developers. Out of the 118 sectors, 111 will witness declines in LBC rates ranging from 3% to 11%. The most significant decrease of 11% was reported for Sectors 11, 12, 13, and 14, which comprise the Marina Bay area, Shenton Way, and Raffles Quay.

On the flip side, LBC for Use Group A (Commercial) saw an overall average increase of 0.4%. Increases of 3% to 4% were reported for 12 out of the 118 sectors, while no changes were reported for the remaining ones. This slight uptick might be attributed to the Return-to-Office trend, which could exert downward pressure on vacancy rates.

Meanwhile, Use Group C (Hotel/Hospitality) witnessed an overall average increase of 3%. The LBC for only two sectors remained unchanged, whereas increases of 3% to 5% were reported for the other 116 sectors. This increase may be due to the improving outlook for the tourism and hospitality industry.

LBC rates are determined based on land use and are used to correct holding costs and the amount of the land/premise being held by the taxpayer. This principle has been in place since 1995 and is recalculated quarterly.

Overall, the newest LBC look promising for both developers and land users as most use groups have seen reductions in the LBC rates.