Update on Framework for Allocating and Pricing Land for Places of Worship
Ministry of National DevelopmentSpeakers
Summary
This question concerns the progress of the revised framework for allocating and pricing land for places of worship as raised by Mr Sitoh Yih Pin. Minister Desmond Lee explained that land is now allocated via balloting with predetermined prices reflecting fair market value instead of competitive tenders. He noted the September 2023 launch of two sites and reported that 32 religious organisations have applied for lease renewals under the framework. For the seven completed renewals, premiums averaged 47% lower than previous tender rates, with prices determined by the Chief Valuer based on site factors. Minister Desmond Lee added that religious leaders welcomed these changes as a more sustainable manner for the Government to allocate land.
Transcript
31 Mr Sitoh Yih Pin asked the Minister for National Development (a) what is the progress on implementing the revised framework for allocating and pricing land for places of worship; (b) whether any tenders have been launched under the new framework and, if so, what are the outcomes of such tenders; (c) whether any religious organisations have applied to renew their leases under the new framework and what are the outcomes of these applications in terms of lease renewal premiums; and (d) whether the Government has received any feedback on the new framework.
Mr Desmond Lee: On 28 May 2023, the Government announced changes to the framework for allocating and pricing land for Place of Worship (PW). Future PW land will be allocated through a ballot system rather than through a competitive tender. There will be upfront price certainty as religious organisations will pay a predetermined price, reflecting the fair market value of the site, as determined by the Chief Valuer.
On 14 September 2023, the first two sites were launched under the revised framework – a church at Jalan Kayu and a Chinese temple at Gambas Crescent. These sites are currently open for application, which will close on 14 November 2023.
As of 30 October 2023, the Singapore Land Authority has also received applications from 32 religious organisations (ROs) to renew their leases, of which seven ROs have completed the renewal process and the remaining applications are being processed. The lease renewal premium is determined by the Chief Valuer, with adjustments made to the price based on site specific factors, such as location and the remaining lease tenure. The average rate paid by the seven ROs is, on average, around 47% less than the rates for new PW sites in recent tenders prior to the implementation of the revised framework.
Religious leaders represented in the National Steering Committee on Racial and Religious Harmony welcomed the Government's efforts to ensure that PW land is allocated in a more sustainable manner.