This time last year, the average LBC on non-landed residential geographical sectors was 0.3%, which had followed a 5.4% decrease in September 2024, a 0.1% increase in March 2024, a 3.2% decrease in September 2023 and a 0.3% increase in March 2023.
The LBC is a tax on enhancement in land value and a key source of government revenue. The review is carried out on a half-yearly basis in consultation with the chief valuer at the Inland Revenue Authority of Singapore (Iras).
The average gap over the implied land value for non-landed residential has widened since March 2025. Within this use group, 114 out of 118 sectors showed increments for the latest period, ranging from approximately 3% to 23%.
See also: New web tool for developers to estimate land betterment charges upfront
The highest increase was in sector 97 (New Upper Changi Road, Bedok South and Bedok Road), with a 22.7% gain.
This could be due to the government land sale (GLS) award of Bedok Rise for $1,330 psf per plot ratio (ppr) in December 2025, notes Knight Frank Singapore’s research head Leonard Tay. Expected to yield some 380 condominium units, the site next to Tanah Merah MRT Station was awarded to Allgreen Properties, which beat nine other bidders.
The second-highest increase of 10.2% came from sector 37, reflective of a Bukit Timah/Newton GLS site that drew eight bids. Spanning 63,498 sq ft, the site is estimated to yield 340 housing units and was awarded to HH Investment, the Singapore subsidiary of Taiwan’s Huang Hsiang Construction Corp, at $1,820 psf ppr.
See also: Blackstone talks on US$4 bil New World deal stall over control — Bloomberg
The collective sales market remained slow in the past six months, notes Mark Yip, CEO, Huttons Asia. Just one small residential collective sale concluded in 2H2025. Thus, the changes in group B2 largely tracked performance at GLS tenders.
The large number of bidders and their high bid prices rose in 2H2025, “reflecting a greater urgency and a stronger willingness to push land pricing boundaries”, says Tay.
The top or winning bids for GLS sites at Holland Link (tender closed July 29, 2025), Dorset Road (Oct 9, 2025), Upper Thomson (Parcel A) (Oct 23, 2025), Bukit Timah Road (Nov 11, 2025) and Bedok Rise (Nov 27, 2025) came in above expectations, adds Tay.
In addition, the brisk take-up of more than 10,815 new home sales in 2025 could have spurred developers to dedicate even more financial resources in acquiring land. Developers’ sales in 2025 was the highest since 2021.
However, with non-landed LBC rates rising broadly across Singapore, potential collective sales sites could be more costly for developers. The tax to top-up land tenures to 99 years, as well as to unlock unused gross floor area, will be higher as a result of the latest revision.
Landed residential (B1) LBC up 4%
Landed residential (use group B1) saw the next highest increase in LBC rates of 4% for the period, picking up from a marginal 0.4% rise in the previous round of revision.
In total, 93 out of 118 sectors saw a rise in LBC rates ranging from 2.7% to 10.4%, reflecting strong transaction activity in the Good Class Bungalow (GCB) and landed market amid low interest rates, says Tricia Song, CBRE’s research head for Singapore and Southeast Asia.
The Urban Redevelopment Authority (URA) property price index for landed homes rose 3.4% in 4Q2025, the highest quarterly increase in the year. The landed property price index grew by 7.6% in 2025, more than thrice the 2.3% price rise notched by non-landed properties last year.
Among the more prominent GCB deals since September 2025 was the $148 million sale of a GCB in Peirce Road, a $61 million GCB transaction in Dalvey Road and a $60 million GCB deal in Dalvey Estate.
Across geographical sectors, the largest LBC increase for landed residential sites was 10.4%, recorded in sector 98, spanning Tampines, Simei and Bedok, pointing to firmer underlying land values in the East, notes Marcus Chu, CEO of ERA Singapore. “Landed homes in these estates continue to see resilient demand, particularly from affluent owner-occupiers upgrading within the region.”
Double-digit adjustments across several Core Central Region (CCR) sectors reflect sustained confidence in Singapore’s prime landed segment and the long-term value of centrally located housing, says Chu. “Land in these tightly held enclaves remains scarce, and pricing movements tend to track broader prime residential benchmarks.”
The sectors with the largest uplifts include central locations around Mount Emily and the Monk’s Hill/Newton neighbourhoods. With Newton identified for rejuvenation under the URA Master Plan 2025, the area is poised for transformation through the introduction of new high-density residential developments integrated with commercial and community amenities, notes Chu.
“Plans such as the Monk’s Hill Linear Park will enhance connectivity between Newton and Emerald Hill within the prime Orchard precinct,” he adds.
