From September 1, 2025, to February 28, 2026, property owners and developers across Singapore will face new Land Betterment Charges (LBC). The Singapore Land Authority (SLA), working closely with the chief valuer, has revised these charges upward for most use groups, reflecting stronger demand and shifting market conditions.
If you are involved in residential, commercial, or industrial property, the new rates will matter to you. On average, increases range from 0.1% to 1.6%. For civic and religious sites, the jump is sharper at 2.9%. In contrast, hotels, hospitals, and nursing homes see no change this round.
Since LBC reviews happen twice a year, these adjustments act as a barometer of how the property market is moving. By understanding the changes, you can better anticipate costs tied to redevelopment, en bloc sales, or new project launches.
Table of contents
- What are Land Betterment Charges (LBC)?
- Landed residential segment: Prime GCB areas see the biggest landed LBC hikes
- Non-Landed residential segment: Biggest gains in Bayshore, East Coast, and Serangoon
- Industrial LBC rates jump, driven by strong land sales
- Commercial segment: Rates stay mostly flat
- Place of worship and civic/community institutions: Another hike
- Analysts: Experts say higher rates won’t dampen confidence
- Upcoming GLS sites could shape the next review
What are Land Betterment Charges (LBC)?
LBC are fees you pay to SLA when the value of your land increases because of changes in planning. This increase can come from:
- A change in use of the land,
- An approved higher plot ratio, or
- A redevelopment project.
The charge is assessed every six months across 118 geographical sectors and is applied to multiple use groups including residential, commercial, industrial, and landed properties.
To set the right level, SLA benchmarks the rates against real-life land transactions. This includes both Government Land Sales (GLS) and private collective sales. For many of you, the LBC will most often come into play during redevelopments, en bloc sales, or leasehold top-ups.
Interested in the Government Land Sales slated for the second half of 2025? Read more here: 4,725 new private homes (including ECs) set to launch under the 2H2025 GLS Confirmed List
Landed residential segment: Prime GCB areas see the biggest landed LBC hikes
For landed homes, you are facing a modest increase of 0.4% on average. Out of 118 sectors, 13 saw hikes between 3% and 5%, while the remaining 105 stayed the same.
According to analysts, this rise reflects renewed demand in the landed property market. You may have noticed more activity in the Good Class Bungalow (GCB) sector. Prime areas such as Nassim Road, Gallop Road, Dalvey Road, Ridout Road, and Chatsworth Road were among those most affected.
Non-Landed residential segment: Biggest gains in Bayshore, East Coast, and Serangoon
In contrast, non-landed residential LBC rates recorded a bigger increase of 0.7% on average. Out of all sectors, 19 showed gains of 2% to 15%, while one sector experienced a small 4% reduction. The rest, about 98 sectors, stayed unchanged.
The sharpest adjustment happened in Sector 96 (Bayshore), where charges spiked 15.4%. This was closely linked to a record GLS tender won by SingHaiyi in March 2025, at $1,388 per square foot per plot ratio. The site, sized at 112,992 square feet on a 99-year lease, will bring about 515 new homes right next to Bayshore MRT station. Under the URA Master Plan, Bayshore is also being shaped into a waterfront precinct with around 12,500 homes and two MRT stations.
Nearby areas also felt notable increases. East Coast Park (Sector 89) and Marina East (Sector 90) both saw jumps of 12.1%. These are linked to long-term transformation plans. Sector 89 is part of the “Long Island” vision, a 20-km waterfront recreation zone that ties into Singapore’s 120-km southern coastline. Sector 90 falls within the Greater Southern Waterfront, where more than 10,000 new homes and lifestyle spaces are expected.
Another big mover was Sector 104 (covering Serangoon, Lorong Chuan, Bishan, Ang Mo Kio, and Bartley), which went up by 9.5%. This was driven by the Chuan Grove GLS site, awarded in July 2025 to a joint venture between Sing Holdings and Sunway. The site can support about 550 condos and attracted seven bids. Another site nearby, launched in May, is expected to add around 505 units and closes its tender in September 2025.
Industrial LBC rates jump, driven by strong land sales
If you are looking at industrial LBC rates, the increase is sharper at 1.6% on average. Out of 118 sectors, 45 registered hikes between 3% and 10%, while the other 73 stayed the same.
The most striking rise occurred in Sector 114, where rates climbed 9.9%. This increase followed high land sale prices at Tukang Innovation Drive, Jalan Papan, Gul Drive, and Pioneer Road.
Commercial segment: Rates stay mostly flat
Commercial sites, on the other hand, saw very minimal movement. The average increase was only 0.1%, and just four sectors recorded hikes of about 3%. The rest, 114 sectors, were unchanged.
A key area to note is Sector 115 (Sembawang/Woodlands), where rates rose 3.3%. This was tied to the Northpoint City South Wing deal. Analysts highlighted that there were not many significant new development transactions in this segment, which explains the overall smaller change.
Place of worship and civic/community institutions: Another hike
For those of you in the civic or religious sectors, charges rose across the board. All 118 sectors recorded increases ranging from 3% to 4%. This worked out to an average rise of 2.9%, following the already steep 5.8% hike in March 2025.
Analysts: Experts say higher rates won’t dampen confidence
Industry experts have weighed in on these changes. Tricia Song of CBRE explained that the revisions reflect a gradual realignment with market conditions, especially after a long period without changes. Dr. Chua Yang Liang from JLL believes these hikes should not shake overall market confidence, since the LBC mainly affects projects that push for higher development intensity.
Nicholas Mak from Mogul.sg noted that suburban non-landed residential areas were most impacted. He added that the higher costs are still manageable for developers because LBC is only a small portion of project costs. You should also keep in mind that developers can pass some of these costs on to homebuyers, especially when demand for homes remains strong.
Upcoming GLS sites could shape the next review
Developers have been especially active recently. Strong sales of new homes are fueling efforts to replenish land banks. Many GLS tenders are now drawing more bids than before, with higher competition driving up land prices.
Looking ahead, sites at Chencharu Close, Hougang Central, Telok Blangah Road, and Tanjong Rhu Road are expected to be highly contested. If bidding trends continue, you may see LBC rates pushed even higher in the next review cycle.
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