Written Answer by Minister for Law K Shanmugam to PQ on Annual Revenue Received by SLA from Government Land Sales Since 2000

07 Nov 2022 Posted in Parliamentary speeches and responses

Mr Leong Mun Wai (Non-Constituency Member of Parliament)

Question

To ask the Minister for Law for each year since 2000, how much of annual revenue from Government Land Sales received by SLA are derived from (i) public housing (ii) private housing and (iii) non-housing use, respectively.

Written Answer:

1. I will clarify one point first. Land is a scarce asset which is protected as Past Reserves. The sale proceeds from Land are added to Past Reserves, on this principle: when Land is sold, no new wealth is created – it is a conversion of physical assets to financial assets.

2. Thus, as the Member may be aware, proceeds from land sales accrue fully to Past Reserves and are not available as revenue for spending in the Budget.

3. The Land sold to the private sector for development is done mainly via open tender through the Government Land Sales Programme (GLS).

4. From FY2001 to FY2021, Singapore Land Authority (SLA) received an average of $5.2 billion annually from GLS sites for public housing (where such housing is developed by the private sector)¹, private housing², and non-housing use. The historical data on tender prices for GLS sites and their respective uses can be found on the Housing and Development Board (HDB), Urban Development Authority, and Jurong Town Corporation websites. These proceeds, the average of $5.2 billion per year, were paid into the Reserves, as physical assets (Land) were converted into financial assets.

5. Sale of State land to HDB for public housing development, does not fall under GLS. The information on proceeds to SLA paid by HDB for the purchase of State land can be found in HDB’s annual financial statements report, which is published on HDB’s website.

^{1. This includes GLS sites sold through HDB for the Design, Build and Sell Scheme (DBSS). Land sales for the DBSS has been suspended since 2011, and the last DBSS project (Pasir Ris One) was launched in April 2012.↩}

^{2. Including sites sold for the development of Executive Condominiums (ECs).↩}

Last updated on 7 November 2022