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

The new LBC rates are applicable to all applications made from 1 September 2021 to 28 February 2022.

This Tengah Plantation Close EC offers great features for its residents like incredible recreational facilities, efficient security systems, and quality services. The facilities like a gym, swimming pool, BBQ area and a children’s playground are strategically positioned throughout the development, providing residents with an exceptional living environment. Additionally, residents can enjoy the breathtaking views of the natural greenery that surround the estate, allowing them to stay relaxed and be at one with nature.

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 the other Use Groups, which include Use Group B1 (Residential, landed) and Use Group D (Industrial).

For Use Group B2 (Residential, non-landed), out of the 118 sectors, 111 will witness declines in LBC rates ranging from 3% to 11%. LBC rates for the remaining seven sectors will remain unchanged. 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.

The decrease in LBC for Use Group B2 is expected to be met with cheers from developers.

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 sectors. This slight uptick could be attributed to the Return-to-Office trend, which might exert downward pressure on vacancy rates.

Meanwhile, Use Group C (Hotel/Hospitality) witnessed an overall average increase of 3%. The LBC for the remaining 116 sectors saw increases of 3% to 5%, while the rates for only two sectors remained unchanged. The increase for Use Group C was the highest, possibly due to the improving outlook for the tourism and hospitality industry.

The new LBC rates will be applicable to all applicants from 1 September 2021 to 28 February 2022.