THE EVOLUTION OF THE GOVERNMENT LAND SALE FROM PRICE TENDER TO CONCEPT AND PRICE REVENUE EVALUATION

Abstract

In Singapore, land is a scarce resource used for a myriad of activities, and is hence inevitably, an expensive possession. However, property prices have risen at an expedited rate, it questions the sustainability of land prices. In determining land prices, the Government Land Sales (GLS) programme is crucial in the sale of state land. Commonly sold on the Open tender, which is a form of price competition with little consideration for its development concept. As such, this study seeks to discuss, analyze and evaluate the evolution of the GLS programme, to make recommendations for the improvement of the current GLS system.

Based on in-depth interviews conducted with six experts from various real estate fields, and 200 surveys that were carried out at Bugis+ and Marina Bay Sands. It is observed that the Open tender mechanism has likely exacerbated current land prices, and the Concept and Price Revenue (C&P) tender is a viable system to ensure price sustainability. The C&P tender presents significant contribution in ensuring a quality built environment, as well as in creating a positive spillover for its surroundings. However, there are significant issues such as the wastage of resources, the subjectivity regarding the success of such developments, the inefficiency in execution, and the gap between the government and developer.

Therefore, despite the valuable contributions of the C&P tender, it is not possible for the system to be mass implemented. While there is value in using the system, there is also a need for the system to be refined. As suggested by market professionals, recommendations such as, disclosure of the reserve price, engaging public consultations with market professionals and pre-selecting developers based on their track records may help in achieving better outcomes.