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 or 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.