Lease Management


DIFFERENTIAL PREMIUM

State lands are sold at a price that is based on use and intensity restrictions, which are stipulated in the State Title. If there are subsequent development plans to put the site to a higher use of intensity, an application to the SLA must be made to lift the relevant title restrictions before development works may proceed.

To account for the enhancement in land value arising from the development, a payment known as differential premium (DP) will be charged for the lifting of the title restriction.

The DP amount is generally computed based on the Development Charge (DC) Table of Rates. However, in cases where the State Title contains special restrictions, the DP amount may be determined using other methods and the resultant amount may be higher than the amount derived using the DC Table of Rates. The material date for the determination of the DP amount is pegged to the date of the Provisional Permission (PP) or the start date of any second or subsequent PP extensions. For leasehold lands, the DP amount will be adjusted to reflect the remaining tenure of the land using the Leasehold Table.

Where the approved use does not fit into any of the Use Groups in the DC Table of Rates, the DP amount payable will be determined by the Chief Valuer.

For more information and examples of how DP is calculated, please click here.

PROCESSING FEE

A non-refundable processing fee of $1,000 is payable for an application to lift a title restriction.

OPTION FOR SPOT VALUATION

Landowners/developers who are not satisfied with the differential premium (DP) amount derived using the Development Charge (DC) Table of Rates may submit a written appeal to SLA to seek a spot valuation by the Chief Valuer (CV). 

An appeal fee is payable as follows: 

DP Amount Appeal Fee

DP Amount

Appeal Fee
(Inclusive of GST)

Less than $1 million

$1,070

$1 million to less than $4 million

$2,140

$4 million to less than $7 million

$3,210

$7 million to less than $10 million

$4,280

More than $10 million

$5,350

 

If the new DP amount assessed by the CV turns out to be higher than the original DP amount derived using the DC Table of Rates, the appellant will not be allowed to fall back on the original DP amount. 

If the appellant withdraws or abandons his application upon receiving a higher DP amount after appeal, he will be barred from applying for the lifting of title restriction for 6 months. A new set of application form and processing fee will be required if he is still interested to lift the title restriction thereafter.




APPLICATION TO LIFT TITLE RESTRICTION

You may apply to lift a title restriction using this online application form

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EXEMPTION FROM DEVELOPMENT CHARGE IF DIFFERENTIAL PREMIUM IS PAID

Where a State lease does not specify the use or the maximum allowable intensity for the land, Development Charge (DC) may be payable for any enhancement in land value arising from a development proposal. However, a lessee may be eligible to pay DP in lieu of DC. For more information, please refer to this circular.


RENEWAL OF LEASE

All State leases have specified tenures. Property owners can apply for the renewal of leases, and each application will be considered on its own merits, bearing in mind the Government's long-term plans for the land and in consultation with other public agencies. Please refer here for the current Lease Renewal policy. 

You may apply for the renewal of a lease using this online application form

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