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GOVERNMENT LAND SALES PROGRAMME FOR PRIVATE RESIDENTIAL, COMMERCIAL AND HOTEL DEVELOPMENT FOR THE SECOND HALF OF 2006

1 The Ministry of National Development (MND) today announced:

a The Government Land Sales (GLS) Programme for private residential, commercial and hotel development for the second half of 2006; and

b The supply of private residential, commercial and hotel space from projects that will be initiated by various Government agencies in the second half of 2006, apart from the GLS Programme.

Background

2 The GLS Programme for the first half of 2006 comprised 23 sites on the reserve list and 1 confirmed site at Collyer Quay which is scheduled to be launched for tender in end-June 2006. Under the reserve list, the Government will only release a site for sale if an interested party submits an application for the site to be put up for tender with an offer of a minimum purchase price that is acceptable to the government. Sites under the confirmed list are released for tender at a pre-determined date, without the need for the sale to be triggered by an application.

3 To-date, 4 sites on the reserve list for the first half of 2006 have been triggered for tender after developers submitted successful applications for them to be put up for sale. These comprise 2 residential sites at Tanah Merah Kechil and Sinaran Drive, a commercial site at Orchard Road/Somerset Road, and a hotel site at Clemenceau Avenue/Unity Street. With the 4 sites put up for tender, there remains 10 residential sites, 2 commercial & residential sites, 3 commercial sites, 2 "white" sites and 2 hotel sites on the reserve list of the GLS Programme for the first half of 2006.

GLS Programme for second half of 2006

4 All the remaining sites on the reserve list for the first half of 2006 will be carried over to the reserve list for the second half of 2006. In addition, another 15 new sites will be placed on the GLS programme for the second half of 2006. 14 of the new sites will be added to the reserve list and 1 new site will be released for tender as a confirmed site.

Confirmed commercial site at Beach Road/Middle Road

5 The only confirmed site that will be released for tender in the second half of 2006 is a new commercial site at Beach Road/Middle Road. The site is located in the Downtown Core Planning Area. As the site occupies a key node between the Suntec Convention Centre, Raffles City and the Bugis Arts and Entertainment District, the government would like to see it developed early. Linked directly to the Esplanade Rapid Transit System (RTS) Station which is due to be operational by 2010, the early development of the site also has the advantage of facilitating pedestrian and commuter connections between the station and the surrounding developments in the area.

6 This 3.5 ha site will allow for a quality development with an optimum mix of prime office space and high-end hotel rooms that can synergise with the commercial, convention and hotel cluster in the area. To meet this objective, the site will be sold with the requirement for a minimum amount of office and hotel floor areas to be provided. The details will be decided later.

7 The former NCO Club and Beach Road Camp buildings, which are standing on the site, are to be conserved. The early redevelopment of the site will also facilitate the refurbishment and adaptive reuse of the conservation buildings.

New Reserve Sites

8 The 14 new sites to be added to the reserve list of the GLS programme for the second half of 2006 consist of the following:-

a 3 residential sites at Simon Road, Dakota Crescent and Woodsville Close;

b 6 hotel sites at Mohamed Sultan Road/Nanson Road, New Market Road/Merchant Road, Balestier Road/Ah Hood Road, Tanjong Pagar Road (2 sites) and Upper Pickering Street;

c a "white" site at Race Course Road/Rangoon Road;

d 2 commercial sites at Anson Road and Tampines Grande;

e a short-term lease site at Jalan Jurong Kechil for residential use that can be developed for retirement housing; and

f a short-term lease site at Punggol Point for recreation use.

9 The residential sites at Simon Road, Dakota Crescent and Woodsville Close will provide more choices for private housing development on different parts of the island.

10 Together with the existing hotel sites from the first half 2006 reserve list, and the confirmed site at Beach Road/Middle Road, the addition of 6 new hotel sites to the reserve list will provide a good variety of hotel sites which can cater to a range of accommodation needs of visitors. This will contribute to meeting the demand for hotel rooms which is expected to increase given STB's target of attracting 17 million visitors by 2015.

11 In addition, the white site at Race Course Road/Rangoon Road will be sold with a requirement to develop a minimum quantum of hotel use. The site is located near the Historic District of Little India which is a location popular with visitors. The minimum quantum of hotel use, which will be determined when the site is put up for sale, will provide opportunities to meet the demand for hotel accommodation in this area. The remaining floor space may be developed for other uses, i.e. commercial and residential uses.

12 The two commercial sites at Anson Road and Tampines Grande will add to the list of sites which can be developed to meet the demand for office space.

13 The short-term lease residential site at Jalan Jurong Kechil will provide the opportunity for a private retirement housing development. The site is released in response to a recommendation by the Committee on Aging Issues (CAI) for the Government to consider specific measures to facilitate the development of retirement housing by the private sector. In particular, the Committee had recommended varying the length of land leases. The site at Jalan Jurong Kechil will therefore be offered for sale on a 30-year lease. Developers will have the option to develop either retirement or normal housing on the site.

14 The short-term lease site at Punggol Point will provide recreation facilities together with a small quantum of food and beverage uses along the coastal area around Punggol. It forms part of URA's initiatives to enliven the coastal areas around Punggol, Pasir Ris, Pulau Ubin and Changi. Possible developments would include a sea sports centre, a resort and health retreat complemented by a seafood centre. The concept for the short-term lease site at Punggol Point, the length of the lease and the extent of allowable uses will be finalised later after consultations with potential investors.

15 The GLS Programme for the second half of 2006 will therefore consist of 14 residential sites, 2 commercial & residential sites, 5 commercial sites, 3 "white" sites, 8 hotel sites and 1 recreation site on the reserve list, and 1 confirmed commercial site (see Annex 1). These sites can potentially yield about 4,670 private residential units, 273,000 sqm Gross Floor Area (GFA) of commercial space and 4,155 hotel rooms.

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Other Government Supply to be made available in Second Half of 2006

16 Apart from the GLS programme, the Government also makes available other supply of land and properties which provide additional residential, commercial and hotel space. The Ministry of National Development works closely with other agencies to coordinate the supply of space from GLS and other sources made available by the Government.

17 The supply of private residential, commercial and hotel space by the Government outside of the GLS programme in the second half of 2006 is as follows:

a) 135,000 sqm GFA of commercial space¹ , including:

i) Retail facilities under the Economic Development Board's (EDB) Warehouse Retail Scheme² (40,000 sqm);

ii) A mixed-use development at JTC's one-north project (24,000 sqm);

iii) Leasing of vacant State buildings to allow for the expansion of commercial schools supported by EDB (20,000 sqm);

iv) Localised retail facilities in parks and recreation areas, business parks and MRT stations;

v) Interim use of vacant State buildings and small land parcels; and

vi) Sale of conservation shop-houses at Kampong Glam.

b) 1,000 hotel rooms³ from hotel projects in Sentosa and other locations; and

c) 240 private residential units at Sentosa Cove and other locations.

18 Most of the commercial space comes from a few major projects, such as the Warehouse Retail Scheme, the mixed-use development at one-north and the leasing of vacant State buildings to commercial schools. These projects are intended to support the Government's economic or development objectives.

19 The remaining projects, such as those in parks and recreation areas, business parks and MRT stations, are small-scale and will cater to localized demand.

20 The announcement of the planned supply to be made available by the Government outside of the GLS programme will provide a more complete picture of the overall Government supply of space for the second half of 2006. The quantum is indicative and may change as the plans are still under study. The actual supply that will be realized would depend on market demand and interest from investors.

Re-assignment of GLS Sites by Successful Tenderers and Private Land by Foreign Housing Developers

21 MND had announced in October 2001 that successful tenderers of GLS sites and foreign housing developers of private land can dispose of the land which is vacant or under development, or dispose of their interest in the projects on such land, if the transaction is not of a speculative nature. This measure was extended to all developers of GLS sites awarded on or before 23 June 2003 and foreign housing developers of projects on private land for which the application for the Qualifying Certificate (QC) was made on or before 23 June 2003. In June 2005, MND announced that the deadline for those who wish to apply for such re-assignment was extended to 30 June 2006.

22 The deadline to apply for such re-assignment has now been further extended by one year to 30 June 2007. This will continue to apply to all developers who were awarded GLS sites on or before 23 June 2003, and foreign housing developers of projects on private land for which the application for the QC was made on or before 23 June 2003 (see Annex 2).

23 All applications for re-assignment of GLS sites are to be made to the appropriate GLS agent. Applications by QC holders for the re-assignment of private land are to be made to the Controller of Residential Property in the Singapore Land Authority.

For media queries, please contact:

Issued by: Ministry of National Development
Date: 15 June 2006

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ANNEX 1

GOVERNMENT LAND SALES PROGRAMME FOR SECOND HALF OF 2006

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ANNEX 2

RE-ASSIGNMENT OF GLS SITES BY SUCCESSFUL TENDERERS AND PRIVATE LAND BY FOREIGN HOUSING DEVELOPERS

1. The successful tenderer of a GLS site is normally not allowed to dispose of the land to a single purchaser before completion of the development, i.e. before obtaining Temporary Occupation Permit. He is also required to retain a controlling interest of more than 50% in the development.

2. Foreign housing developers who wish to purchase private residential land or properties for development are required to apply to the Controller of Residential Property in the Singapore Land Authority for a Qualifying Certificate (QC) under the Residential Property Act. They are not allowed to dispose of the land or change the shareholding of the company without the prior written approval of the Controller.

3. These restrictions are to ensure that such developers purchase the land for development and not for speculative trading. However the Government has decided that, where the transaction is not of a speculative nature:

a. For all GLS sites, the developer of the sale site (awarded on or before 23 June 2003) will be allowed to:

The purchaser will have to take over all the obligations under the tender conditions/building agreement.

b. For QC holders who applied for their QC on or before 23 June 2003:

4. In seeking approval for re-assignment, an applicant must satisfy the Government that the transaction is not of a speculative nature.

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Last updated on 15 Jun 2006