What Is Land
Legal definition · Lot Base System · Strata Title · Annual Value & Property Tax
1What Does "Land" Mean in Law?
In law, "land" is far broader than just the ground surface. It includes everything permanently connected to the earth — above, on, and below the surface.
🌍 Components of "Land"
Surface · Below · Above · Rights
✈️ Airspace — The "Up to the Sky" Rule
Cuius est solum… but not literally to infinity
The Latin maxim cuius est solum, eius est usque ad coelum et ad inferos ("whoever owns the soil owns up to the heavens and down to the depths") applies only up to the height reasonably necessary for ordinary use and enjoyment of the land.
✅ NOT trespass
Aircraft flying over at normal altitude
❌ IS trespass
Building a structure or crane swinging over your land without consent
Two types of land components:
| Type | Meaning | Examples |
|---|---|---|
| Corporeal Hereditaments | Tangible — physical things you can touch | Buildings, trees rooted in ground, soil, minerals, pool |
| Incorporeal Hereditaments | Intangible — rights over land you cannot touch | Easements, right of way, right of light, profits à prendre |
Fixtures vs Fittings — covered in P1-04 (Introduction to Land Law). Review that section for the two annexation tests and agent duties.
2Lot Base System (LBS) — How Land Is Legally Described
Every land parcel in Singapore is uniquely identified by a lot number issued by SLA under the Lot Base System (LBS). This is the legal address of a parcel of land — not the postal address.
📍 Two Geographical Divisions
Town Subdivision (TS)
30 TSs — city / central area.
Example: TS5-10234A
Mukim (MK)
34 MKs — outer / rural regions.
Example: MK13-10042K
Types of lot numbers:
| Lot Type | Number / Prefix | What It Represents | Example |
|---|---|---|---|
| Standard Land Lot | 1 – 69,999 and 90,000 – 99,999 | Regular landed parcel (terrace, semi-D, bungalow) | MK27-10724N |
| Airspace Lot | 70,000 – 79,999 | Air rights above a structure (e.g. above-ground MRT) | TS21-70001M |
| Subterranean Lot | 80,000 – 89,999 | Underground space (tunnel infrastructure, basement) | MK20-80024A |
| Strata Lot | U prefix · U1 – U999,999 | Individual unit in a strata development (condo, commercial) | TS5-U38421N |
| Accessory Lot | A prefix · A1 – A49,999 | Ancillary unit sold separately: carpark lot, storage | MK10-A6401C |
Every lot number ends with a check alphabet (a letter for verification). New lot numbers are allocated when land is amalgamated, subdivided, when part is acquired by the government, or when new reclaimed land is formed.
3Understanding Strata Title
The Land Titles (Strata) Act (LTSA) 1967 introduced strata title in Singapore, allowing individual ownership of units within a multi-storey development. Before LTSA, you could only own land lots — not a single floor of a building.
🏢 Key Strata Concepts
Strata Lot
The individual unit you own exclusively (your flat, shop, office). Identified by a U-prefix lot number.
Common Property
Areas shared by all owners: corridors, lobby, lifts, pool, gym, carpark (if not separate accessory lots). No single owner has exclusive use.
Share Value (SV)
Allocated to each lot based on its strata area. Larger unit = higher SV. Determines: (1) proportion of management fund / sinking fund contributions, and (2) voting power at MCST meetings.
Strata Area
The floor area of the unit. May include voids (double-volume space within the unit) — agents must verify whether voids are included in the stated strata area.
Subsidiary Proprietor (SP)
The owner of a strata lot. Title document = Subsidiary Strata Certificate of Title (SSCT).
MCST
Management Corporation Strata Title — the legal body comprising all SPs. Manages common property and levies maintenance fees and sinking fund on each SP according to SV.
What agents must check for resale strata units
4Annual Value (AV) & Property Tax2027 · Explicit · 1.4.4
What is Annual Value (AV)?
Annual Value (AV) is defined in the Property Tax Act (Cap 254) as the estimated gross annual rent at which the property could reasonably be let from year to year — the landlord bearing the cost of repair, insurance, maintenance, and upkeep. It is assessed by IRAS and is the base on which property tax is calculated. The same AV applies whether the property is owner-occupied, vacant, or rented out.
Key Points About AV
- AV is the estimated annual rental — not the actual rent received
- IRAS derives AV from comparable rents — recent rental transactions of similar properties, adjusted for location, size, condition, lease tenure, building age
- AV is the unfurnished, gross-of-tax rent — it excludes furniture, furnishings and maintenance fees. (Note: the 40% / 50% rule sometimes mentioned is for computing the taxable furniture benefit on employer-provided accommodation, NOT for deriving AV.)
- AV is not the capital / sale value of the property
- IRAS reviews AVs yearly to reflect market rental movements; owners may object / appeal to IRAS within the prescribed window if they believe the AV is wrong
Formula
Property Tax = Annual Value (AV) × Applicable Tax Rate
Example: AV = S$36,000 (condo renting at S$3,000/month) × Owner-Occupied Rate = Property Tax payable
Property Tax Rates — Structure
| Property Type | Rate Structure | Key Feature |
|---|---|---|
| Owner-Occupied Residential | Progressive (lower rates) | 2026 bands: first S$12,000 of AV at 0%; rates progressively step up to 32% on AV above S$140,000 — favours owner-occupiers |
| Non-Owner-Occupied Residential | Progressive (higher rates) | Higher rates than owner-occupied; investment properties pay significantly more tax |
| Commercial & Industrial | Flat rate | Flat rate applied to full AV — not progressive; check IRAS for current rate |
| Owner-Occupied HDB | Concessionary / lower progressive | HDB flats with owner-occupied status receive lower tax; AV varies by flat type |
⚠ Specific tax rate bands change periodically. Always verify current rates at iras.gov.sg before advising clients.
Impact on Buyers & Investors
Why AV Matters for Investors
- Higher AV = higher property tax = lower net rental yield
- Non-OO properties: significantly higher tax reduces investment returns
- Buyers should factor AV into total cost of ownership calculations
- AV changes with market rents — if rents fall, owners may appeal to IRAS for a lower AV
Other Uses of AV
- HDB eligibility: Household AV must not exceed a cap to qualify for certain HDB schemes and grants
- Means testing: Government schemes use AV of residential property as a proxy for wealth
- Owner-occupier relief: Must apply to IRAS to enjoy owner-occupied tax rates
- AV for land/development sites is based on imputed market land rental
📋 Quick Summary — Section 1.4
Exam traps
- → Airplane flying over = NOT trespass. Crane/structure over your land = IS trespass.
- → U prefix = strata lot (unit). A prefix = accessory lot (carpark). Not interchangeable.
- → Below −30 m from Singapore Height Datum (SHD) = State property, even for freehold owners (State Lands Act 2015)
- → SV based on strata AREA — not purchase price, not floor level
- → MCST arrears follow the unit, not the seller
Section Quiz
12 questions · exam-style difficulty · 90 seconds per question
Section Quiz
Unit 1.4 — What Is Land?
12 questions · 90 seconds each · exam-style difficulty