Land Betterment Charge For Commercial Use Unchanged From March

SINGAPORE – Amidst the slowdown in the city-state’s office rental market, the Land Betterment Charge (LBC) for Use Group A (Commercial) has been retained, according to a press release published by the Singapore Land Authority (SLA) on Tuesday evening (28 February, SGT).

This applies for LBC rates for the period 1 March 2023 to 31 August 2023. Previously, the Land Betterment Charge for commercial use increased by 5.4 percent on average for the 6-month period that ended on 28 February 2023.

Similarly, the LBC rates for Use Groups D (Industrial), E (Place of Worship / Civic and Community Institution) and three other Use Groups F, G, and H were also unchanged.

On the other hand, the Land Betterment Charge for Use Group B1 (Residential, landed) has increased by 0.4 percent on average, with the increase ranging between 3 percent and 4 percent.

Likewise, the LBC rates for Use Group B2 (Residential, non-landed) have edged up by 0.3 percent on average, with the uptick ranging from 2 percent to 5 percent.

Lastly, the Land Betterment Charge for Use Group C (Hotel / Hospital) has inched up by 1 percent on average, with the increase ranging between 4 percent and 10 percent.

Notably, the Land Betterment Charge Act came into effect on 1 August 2022. This charge replaces the Development Charge (DC), Temporary Development Levy (TDL), and Differential Premium (DP) regimes.

Just like the Development Charge, the Land Betterment Charge will be reviewed every 6 months in consultation with the Chief Valuer.