Johor Crown Prince and Regent Tunku Ismail Sultan Ibrahim is reportedly seeking to sell 16.6 hectares of prime land in Singapore, but the potential buyer may have to deal with a rather eye-watering tax bill.
Bloomberg reported on 3 September that Tunku Ismail’s representatives have been seeking buyers for the land, including parties from the US and elsewhere.
The biggest complication may be Singapore’s Land Betterment Charge.
Nicholas Mak, chief research officer at property portal Mogul.sg, estimated that the charge could amount to between S$2.5 billion and S$2.7 billion. Another valuer, Tay Kah Poh of the Singapore Institute of Surveyors and Valuers, estimated that it could approach S$3 billion, although he cautioned that the actual figure could be lower because the land’s value before rezoning is not fully known.
What Is This S$2.7 Billion Charge?
The Land Betterment Charge, or LBC, is a tax imposed when government approval increases the value of a piece of land, such as through permission for a more valuable use or greater development intensity.
It replaced several older land development charges in August 2022. According to the Singapore Land Authority, the amount is generally calculated based on the difference between the land’s value before and after the relevant approval.
Importantly, no final S$2.5 billion to S$2.7 billion bill has been issued for Tunku Ismail’s land.
SLA told Bloomberg that the amount payable would be determined after permission to develop the site is granted. The timing of that approval remains unclear.
Under LBC rules, the landowner at the time the chargeable consent is granted is generally liable for the charge. However, another party, such as a prospective purchaser, can assume the liability if the relevant requirements are met.
Bloomberg, citing people familiar with the negotiations, reported that Tunku Ismail wants the eventual buyer to bear the charge. The size and uncertainty of the bill have reportedly been concerns for some prospective Singaporean and Malaysian developers.
Land Could Be Worth Up to S$4.7 Billion After Rezoning
The numbers involved are massive even before the tax is added.
Mak estimated that the 16.6ha site could be worth around S$3.8 billion to S$4.7 billion if it is rezoned, while another valuer cited by Bloomberg put its potential value at at least S$3 billion.
That means any transaction involving the entire site could rank among Singapore’s largest property deals.
The land is located around Holland Road and Tyersall Avenue, close to the Singapore Botanic Gardens.
In March 2026, the Urban Redevelopment Authority said Tunku Ismail had submitted an application to develop his land for low-rise, low-density housing with a gross plot ratio of 1.4, as well as Good Class Bungalows.
URA proposed rezoning the relevant parcels to residential use. Part of the land would also be designated as a Good Class Bungalow Area if the proposal is approved.
Bloomberg reported that a hearing was held in July for objections and representations submitted over the proposed rezoning. The timing of a final development approval remains unclear.
Part of the Site Came From a 2025 Land Swap
The current landholding took shape following an agreement between Tunku Ismail and the Singapore Government announced in June 2025.
At the time, Tunku Ismail owned 21.1ha around Holland Road. Under the swap, he transferred a 13ha parcel closer to the Singapore Botanic Gardens to the Government and received an 8.5ha State land parcel in return. URA said the swapped parcels were of comparable value.
The arrangement shifted his planned developments further away from the Botanic Gardens, a UNESCO World Heritage Site.
After the swap, the two parcels remaining under Tunku Ismail’s ownership total 16.6ha, comprising an 8.5ha plot and an 8.1ha plot.
For now, the reported sale and the eventual tax bill remain two separate uncertainties. Bloomberg’s report is based partly on unnamed people familiar with the negotiations, while Tunku Ismail’s representative declined to comment on the reported sale. SLA also said it does not comment on market speculation involving landowners or potential private transactions.
