Singapore’s Land Betterment Charge (LBC) rates for non-landed residential properties are set to rise in the next half-year, reflecting renewed competition in state land tenders. Developers pay LBC when enhancing land use or increasing project density, with rates now aligned to recent Government Land Sales (GLS) results.
According to ERA Singapore, non-landed residential LBC rates will rise 0.7% on average for the period Sept 1, 2025, to Feb 28, 2026. Areas seeing the sharpest hikes include Bayshore (15.4%), Lorong Chuan (9.5%), East Coast Park and Marina East (both 12.1%), reflecting high GLS benchmark prices achieved in recent tenders.
For example, the Bayshore Road GLS site near Bayshore MRT was awarded at $1,388 psf per plot ratio (ppr) to SingHaiyi Group and Haiyi Holdings, yielding around 515 residential units. The precinct, part of URA’s Master Plan, is set to host 12,500 homes, with a mix of public and private housing.
Similarly, the Chuan Grove GLS site in Lorong Chuan closed at $1,376 psf ppr, translating to a 9.5% increase in LBC rates for the sector. Other locations benefiting from strong bids include the East Coast Park and Marina East sectors, both earmarked for large-scale residential and lifestyle developments under the Greater Southern Waterfront plan.
On the landed residential front, LBC rates will rise 0.4% on average, reflecting renewed demand for Good Class Bungalows (GCBs) in Holland Road, Bukit Timah, and Thomson Road. Meanwhile, commercial and industrial LBC rates see marginal increases, with office and retail sectors remaining largely stable.
Market Commentary
Huttons Asia CEO Mark Yip notes that strong new-home sales in recent months have spurred developers to replenish land banks, with multiple bids pushing GLS prices higher and, in turn, lifting LBC rates. He expects upcoming GLS sites at Chencharu Close, Hougang Central, Telok Blangah Road, and Tanjong Rhu Road to be highly contested, potentially setting new benchmarks.
Tricia Song from CBRE highlights that while LBC increases slightly raise development costs, they do not significantly impact market confidence, as developers and investors remain confident in Singapore’s residential market fundamentals.
📊 Infographic Snapshot: LBC Rate Changes (Sept 2025–Feb 2026)
- 🏘 Non-Landed Residential (B2 Use Group)
- Average rise: 0.7%
- Bayshore: +15.4% (GLS: $1,388 psf ppr)
- East Coast Park & Marina East: +12.1%
- Lorong Chuan / Chuan Grove: +9.5%
- One-north: -3%
- 🏡 Landed Residential (B1 Use Group)
- Average rise: 0.4%
- Driven by GCB demand in Holland Road, Bukit Timah, Thomson Road
- 🏢 Commercial Use
- Average rise: 0.1%, largely flat for CBD and Orchard areas
- 🏭 Industrial Use
- Average rise: 1.6%, with highest increases in Kallang, MacPherson, Ubi, Tai Seng
- ⛪ Civic & Community / Places of Worship
- Average rise: 2.9%
✅ Summary Highlights
- ✅ Non-landed residential LBC rates to rise 0.7% on average, driven by competitive GLS bids
- ✅ Bayshore leads with 15.4% hike, reflecting high benchmark GLS prices and development potential
- ✅ Lorong Chuan, East Coast, and Marina East sectors also see significant increases
- ✅ Landed residential LBC up modestly 0.4%, driven by GCB transactions
- ✅ Commercial and industrial sectors largely stable, with selective industrial hikes
- ✅ Developers’ landbanking activity and market confidence remain strong despite small cost increases