{"id":3211,"date":"2024-03-02T13:28:29","date_gmt":"2024-03-02T05:28:29","guid":{"rendered":"https:\/\/pinegroveresidence.sg\/navagrove\/?p=3211"},"modified":"2024-03-04T13:41:04","modified_gmt":"2024-03-04T05:41:04","slug":"land-betterment-charge-rates-for-residential-commercial-industrial-hotel-uses-raised","status":"publish","type":"post","link":"https:\/\/pinegroveresidence.sg\/navagrove\/land-betterment-charge-rates-for-residential-commercial-industrial-hotel-uses-raised\/","title":{"rendered":"Land betterment charge rates for residential, commercial, industrial, hotel uses raised"},"content":{"rendered":"<p>Land betterment charge (LBC) rates for various use groups, including residential, commercial, industrial, and hotels, have been increased for the first time since a review in September 2011. The new rates for the period from March 1 to Aug 31 were announced on Feb 29 after a review by the <a href=\"https:\/\/www.sla.gov.sg\" target=\"_blank\" rel=\"noopener\">Singapore Land Authority<\/a> in consultation with the taxman\u2019s chief valuer. Developers pay LBC for the privilege of enhancing the use or building larger projects on specific sites.<\/p>\n<p>For landed residential use, LBC rates have seen an average increase of 7.8%, primarily driven by the strong demand in this property segment. The surge in prices for landed homes in 2023, with an 8% increase, contributed to this upward trend. However, some analysts, such as Ms Tay Huey Ying from JLL, express surprise over this rate hike, especially given the second-half slowdown in landed home prices due to recent <a href=\"\/hong-kong-scraps-property-curbs-and-raises-taxes-for-highest-earners\/\">property curbs<\/a>.<\/p>\n<p>In contrast, rates for non-landed residential use experienced a modest average increase of 0.1%, following a previous reduction of 3.2% from Sept 1, 2023, to Feb 29, 2024. This discrepancy is attributed to the faster rise in assessed land values for landed homes compared to non-landed residential properties.<\/p>\n<p>Analysts, including Nicholas Mak from Mogul.sg, and Leonard Tay from Knight Frank, note that the LBC rate increases for non-landed properties are prominent in specific areas like Clementi and Toa Payoh, where government land sale (GLS) sites were awarded at higher rates.<\/p>\n<p>LBC rates for industrial use grew by 1.7%, while rates for hotels and hospitals inched up 0.7% on average. The latter was particularly noted in the CBD and Orchard areas, where hotels have experienced heightened demand from leisure and business travelers.<\/p>\n<p>However, rates for commercial use saw a more significant increase of 3.8% on average, posing potential challenges for commercial collective sales in the near term. This rise is linked to higher LBC rates in Orchard Road and the <a href=\"https:\/\/themarinaviewresidences.sg\" target=\"_blank\" rel=\"noopener\">Central Business District<\/a>, likely influenced by significant commercial collective sales in <a href=\"\/optimism-abounds-for-singapores-real-estate-investment-market-in-2024\/\">Far East Shopping Centre<\/a> and <a href=\"https:\/\/themarinaviewresidences.sg\/ioi-properties-lee-yeow-seng-acquires-shenton-house-for-s538-million\/\" target=\"_blank\" rel=\"noopener\">Shenton House<\/a>.<\/p>\n<p>Despite these changes, LBC rates for places of worship\/civic and community institution use remain unchanged, as do rates for other use groups covering open space\/nature reserve, agriculture, and drains\/roads\/railways. Overall, analysts anticipate that the increased LBC rates, especially in specific sectors, may impact land banking decisions by developers, leading to a more cautious approach amid economic uncertainties and cooling measures in the real estate market.<\/p>\n<p><a href=\"https:\/\/www.straitstimes.com\/business\/land-betterment-charge-rates-for-residential-commercial-industrial-hotel-uses-raised\" target=\"_blank\" rel=\"nofollow noopener\">The Straits Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Land betterment charge (LBC) rates for various use groups, including residential, commercial, industrial, and hotels, have been increased for the first time since a review in September 2011. The new rates for the period from March 1 to Aug 31 were announced on Feb 29 after a review by the Singapore Land Authority in consultation [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3143,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[],"class_list":["post-3211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-property-news"],"_links":{"self":[{"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/posts\/3211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/comments?post=3211"}],"version-history":[{"count":1,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/posts\/3211\/revisions"}],"predecessor-version":[{"id":3212,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/posts\/3211\/revisions\/3212"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/media\/3143"}],"wp:attachment":[{"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/media?parent=3211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/categories?post=3211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/tags?post=3211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}