SLA to roll out changes in remnant land charging framework
The updated framework includes a new rate for remnant land parcels.
The basis for the rate of remnant land parcels will be changed starting 1 September, the Singapore Land Authority (SLA) announced.
Under the updated remnant land charging framework, remnant land used for residential, commercial, and industrial purposes will be valued for sale based on 100% of the full land value, determined by applying the factor of 10/7 to the applicable LBC rate.
Previously, the rate of all remnant land parcels was based on 50% of its full land value determined by applying the factor of 5/7 to the applicable Land Betterment Charge (LBC) rate.
For Residential, Commercial, and Industrial uses, remnant land will be valued for sale based on 100% of the full land value, determined by applying the factor of 10/7 to the applicable LBC rate.
“SLA reserves the right in all cases to determine the land premium payable in consultation with the Chief Valuer. This can occur in situations where the use does not clearly fit into any of the existing Use Groups or where the remnant land is assessed to have synergistic value,” the agency said.
Meanwhile, the rate of remnant land deemed to have synergistic value will be based on the higher of 50% of the enhancement in land value of the amalgamated site as assessed by the Chief Valuer, or 100% of the full land value determined by applying the factor of 10/7 to the applicable LBC rate.
Applications for the purchase of remnant land submitted before 1 September 2022 will be processed based on the existing policy.
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