Online tool launched for developers to estimate land betterment charges upfront for greater cost certainty

[SINGAPORE] The government on Friday (Feb 27) launched an online tool that would give developers more clarity on project costing through a land betterment charge (LBC) estimator to calculate charges for development proposals upfront. 

The move is part of wider improvements to the LBC framework outlined by Minister for Law Edwin Tong at the Real Estate Developers’ Association of Singapore’s annual Spring Festival lunch.  

“The government recognises that streamlined processes and reduced regulatory burden are essential to maintaining Singapore’s competitiveness as a global business hub,” he said.

The LBC is a tax that developers must pay when they seek to enhance land use or build bigger projects on a site. It is a “key source of revenue that allows the government to invest in infrastructure which enables development”, Tong said. “We understand that upfront certainty on the LBC amount is critical for business decisions.”

The LBC regime was introduced in August 2022 to replace the previous Development Charge and Differential Premium systems, which were run separately by the Urban Redevelopment Authority and Singapore Land Authority (SLA), respectively.

The new LBC Estimator will be integrated into SLA’s OneMap portal. It will automatically compute the estimated LBC from key inputs and allow for scenario testing under various development options. This will give developers “greater certainty” when working out their costs, Tong noted. 

Rates are announced twice a year following a review by SLA, in consultation with the taxman’s chief valuer. They are based on the chief valuer’s assessment of land values and take into account recent land sales. 

The LBC framework has also been refined to provide solar operators with greater transparency and certainty, said Tong. Since Sep 1, 2025, solar deployments have been classified under utility use, allowing charges to be calculated using the table of rates instead of spot valuations. 

The authorities have moved up the start of the valuation process for cases requiring a spot assessment. The change was in response to feedback on longer timelines for such cases, and could cut project timelines by up to six months, he said.

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The minister added that SLA will continue to review and update its core processes to reduce processing times and administrative burden for developers, landowners and the broader real estate sector. 

Other SLA initiatives

Beyond the LBC enhancements, SLA will also pilot its digital conveyancing portal this year. Announced in January 2023, the portal aims to streamline the current paper-based conveyancing process into a fully integrated, digital system for all property transactions in Singapore.

“(This) will reduce the administrative burden for the real estate industry, boosting productivity and allowing for better coordination among lawyers, banks, real estate professionals and government agencies,” said Tong.

The government is also exploring longer tenures for state properties, especially those that enable “innovative development” that adds to the character and vibrancy of Singapore.

He cited lifestyle cluster New Bahru and social impact hub The Foundry as recent examples. Earlier in February, SLA also launched a tender for a cluster of heritage bungalows in Adam Park for serviced apartment use on a 30-year leasehold tenure.

“We understand that we need a longer tenure – capex goes in redevelopment, and overall, there’s a reason because the properties are enhanced and redeveloped,” noted Tong. “So we’ll be looking at that, and in due course, will make the announcements when ready.”