SLA to update charging framework for remnant land from Sep 1

THE charging framework for remnant land will be updated from Sep 1 to better reflect the economic value that landowners can garner from combining remnant land parcels with their adjoining private land, the Singapore Land Authority (SLA) announced on Wednesday (Aug 31).

The current rate for remnant land parcels - small and/or irregularly-shaped plots of land that are incapable of independent development but can potentially enhance adjoining land - is based on 50 per cent of the full land value. This is determined by applying the factor of 5/7 to the applicable Land Betterment Charge (LBC) rate, SLA said in a press release.

From Sep 1, the land will be valued for sale based on 100 per cent of the full land value for residential, commercial, industrial uses or where the sale of the land would result in gross floor area transfer.

However, for place of worship and civic and community institution use, remnant land will continue to be valued for sale based on 50 per cent of the full land value.

SLA emphasised that it reserves the right to determine the land premium payable in consultation with the chief valuer, especially in situations where the use does not clearly match existing use groups or where the remnant land has synergistic value. Examples of the latter include enabling the adjoining private land to achieve a higher gross plot ratio or redeveloping substandard private land into a development with standard plot size.

The rate for remnant land with synergistic value will be based on the higher of: 50 per cent of the enhancement in land value of the amalgamated site as assessed by the chief valuer; or 100 per cent of the full land value, determined by applying the factor of 10/7 to the applicable LBC rate.

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This revised charging framework kicks in from Sep 1. Applications for the purchase of remnant land submitted before Sep 1 will be processed based on the existing policy, the SLA said.