Commentary on Revision of Land Betterment Charge Rates from 1 September 2026

SINGAPORE, 31 August 2026 – SLA announced the revision of Land Betterment Charge (LBC) rates from 1 September 2026.

“The latest upward review of LBC rates for 108 out of 118 geographical sectors with changes for non-landed residential use reflects stronger developer participation in government land sales (GLS) tenders and higher bid prices submitted for these sites,” said Marcus Chu, Chief Executive Officer, ERA Singapore. 

LBC rates for Use Group B2 (Residential, Non-landed)

“The largest increase was recorded in Sector 54 (Kallang), where LBC rates rose by 29.1%, followed by Sectors 55 (Boon Keng) and 56 (Geylang Bahru), with an increase of 23.6%. Incidentally, these three sectors are the only ones with an upward adjustment of more than 20%. These 3 sectors are also the only ones with increases of at least $2,000 psm,” adds Chu.

The notable rise may be attributed to the Kallang Close government land sale (GLS) site, with its tender closing in April at $15,231 per square meter ppr ($1,415 per square foot ppr). The site received 4 bids, indicating developers’ strong confidence in the Kallang area and the URA’s master plan for Kallang Alive, which includes opening the Kallang River for recreational activities.

Table 2: Biggest Increase in LBC for B2 (Residential, Non-Landed)

Source: SLA, ERA Research and Market Intelligence

LBC rates for Use Group B1 (Residential, Landed)

“In contrast, the upward adjustment for landed residential properties is less pronounced, with changes ranging from 2% to 8%. The largest increases were seen in Sectors 67 to 69. These three sectors cover the areas around Nassim, Ridley Park and the Botanic Gardens. Each sector saw an increase of 8.1%,” adds Chu.

Landed homes in Singapore have always been highly sought after by high-net-worth individuals due to their rarity. Between March and August, a detached house on Nassim Road sold for the highest price—$64.9 million or $4,550 per square foot. This premium price for the Good Class Bungalow (GCB) is likely due to its prime District 10 location and freehold status. Its scarcity, combined with its close proximity to the Singapore Botanic Gardens and Orchard Road, probably led to its inflated valuation.

Table 2: Biggest Increase in LBC for B1 (Residential, Landed)

Source: SLA, ERA Research and Market Intelligence

“Overall, the increases in LBC are in line with prevailing land prices and are unlikely to significantly alter developer sentiment,” said Chu.   

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Eugene Syn
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eugene.syn@era.com.sg