Competitive Land Bids and Rising Charges Signal Strong Momentum for New Launches

SINGAPORE – Renewed interest in recent state land tenders has pushed up land betterment charge (LBC) rates for non-landed residential use, a move that could shape pricing trends for upcoming new launches in the next half-year.

What Are Land Betterment Charges (LBC)?

Developers in Singapore pay an LBC for the right to enhance land use or build larger residential projects. These charges are revised bi-annually based on assessments by the Singapore Land Authority (SLA) and the chief valuer.

Latest LBC Revisions: Sept 2025 – Feb 2026

The newest rates, effective from Sept 1, 2025, to Feb 28, 2026, reflect the momentum from recent government land sales (GLS). For non-landed homes, LBC rates will rise an average of 0.7%, building on the 0.3% increase earlier in March 2025.

Key Areas Driving the Increases

• Bayshore: The highest jump of 15.4%, fueled by a benchmark GLS award at $1,388 psf ppr near Bayshore MRT.
• Lorong Chuan: A 9.5% rise following the Chuan Grove GLS site award at $1,376 psf ppr.
• East Coast & Katong: Increases of 12% reflect strong land demand near future MRT connectivity.
• One-North: The only decline, with LBC rates falling 3% after weaker bidding at the Media Circle (Parcel A) site.

Impact on Developers and New Launches

Property analysts note that these higher charges align with land price growth seen in GLS tenders. With interest rates easing, developers are more willing to compete aggressively for sites, paving the way for exciting new condo launches in 2026 and beyond.

“These tweaks in LBC rates are aimed at catching up with recent land price increases, and should not dampen developers’ or investors’ confidence,” said Chua Yang Liang, JLL’s Head of Research for South-east Asia.

LBC Trends Across Property Segments

Landed residential: Rates rise 0.4% on average, with hotspots in Holland Road, Bukit Timah, and Thomson Road.

Commercial: Almost flat at +0.1%, reflecting stability in Orchard and CBD office zones.

Industrial: Up 1.6%, with Kallang and Ubi areas seeing the steepest increases due to collective sales.

Hotels & healthcare: No change this round after previous gains.

Civic & community institutions: Rates rise by 2.9%, following a 6% increase in the earlier review.

What This Means for Singapore’s Property Market

The upward revisions, particularly in the East and Bayshore areas, highlight where future new launches are most likely to occur. While LBC forms only a small portion of total development costs, these adjustments provide insight into market confidence and land demand.