State lands are sold at a price based on the proposed use and intensity at the time of sale. The use and intensity are stipulated as conditions in the State title.
Subsequent to the sale, if planning approval is obtained for the land for a proposed development where the approved use and/or intensity exceed that stated in the State Title, an application to the SLA for the payment of differential premium must be submitted before proceeding with the development works.
A payment, known as differential premium (DP), will be charged for lifting the title restriction. The DP is the difference in value between the use and/or intensity stated in the State title and the approved use and/or intensity in the provisional planning permission.
DP is computed based on the Development Charge (DC) Table of Rates. The material date of determination of DP is pegged to the date of Provisional Permission (PP) or the start date of the validity of the second and subsequent PP extensions. Where the tenure of the land is leasehold, the DC rates will be adjusted to reflect the remaining tenure of the land using the Leasehold Table. However, in suitable cases where the State Title contains special restrictions, the DP payable may be determined using other methods and the resultant amount could be higher than the rate determined by the DC table.
Where the use stipulated in the title restriction does not fit into any of the Use Groups in the DC Table, the DP payable will be determined by the Chief Valuer on a case-by-case basis.
For further information and some examples of how to calculate DP, please access this document: The Differential Premium System.
Note: The DC rates were revised from 50% to 70% of land enhancement value on 18 July 2007. DP rates are likewise revised upwards to 70% of land enhancement value. For further details, please access this document: Changes to Differential Premium system on 18 July 2007.
The processing fee for the application is $1,000 and will not be refunded after the application is accepted by SLA.
Option for Spot Valuation
Landowners/developers who are not satisfied with the differential premium (DP) payable based on the Development Charge (DC) Table of Rates can write in to SLA to appeal against the differential premium amount. SLA will then consult Chief Valuer (CV) for a spot valuation.
To prevent frivolous appeals and account for the work involved in processing the appeal, an appeal fee is charged based on the following rates:
|Less than $1 million
|$1 million to less than $4 million
|$4 million to less than $7 million
|$7 million to less than $10 million
|More than $10 million
If the new DP payable upon appeal turns out to be higher than the initial DP based on the DC Table of Rates, the appellant is not allowed to fall back on the initial DP amount.
If the appellant withdraws his application upon receiving a higher DP after appeal, he will be barred from applying for lifting of title restriction for 6 months.
You are required to submit an application form for the payment of differential premium to SLA. The following information has to be included in your application:
- Photocopy of the planning approval (Provisional Permission, Written Permission and any extensions to the Provisional Permission) for proposed development.
- 2 copies of site plan. The site plan should contain the following particulars:
- all existing roads, cadastral boundaries, lot numbers and Mukim/Town subdivision boundaries, and
- the development site edged in red.
- For non-strata developments, if the lots within the development site are owned by more than 1 owner, the application must be jointly submitted by all owners.
- For strata developments, if the Management Corporation wishes to apply for payment of differential premium on behalf of its subsidiary proprietors, please furnish documentation on the special resolution authorising the Management Corporation to submit the application, accept the offer and to execute the supplemental title on behalf of all the subsidiary proprietors.
Exemption from Development Charge if Differential Premium is Paid
Lessees, with State leases that do not specify the use and/or the maximum allowable intensity for the land, are liable to pay Development Charge in respect of the enhancement in land value arising from a development proposal. With effect from 1 Sep 2011, subject to certain terms and conditions being satisfied, a lessee may be exempted from paying Development Charge if Differential Premium is paid for the enhancement in land value. For more information, please refer to the circular.
Renewal of Lease
SLA's responsibilities include the administration of State leases, which have a specific tenure determined at the time of the sale of the land.
Property owners can apply for renewal of leases. Each application has to be considered on its own merits, bearing in mind the Government's long-term plans for land uses and in consultation with other government agencies. Please refer here for the latest Lease Renewal policy. FAQs on the lease renewal can also be found here.
To apply for renewal of lease, please download this application form and send your completed application form, together with the required documents and processing fees, to:
Singapore Land Authority
55 Newton Road
#12-01 Revenue House
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