Revised Land and Pricing Allocation Framework for Place of Worship Land

May 28, 2023

1. The Government has announced changes to the framework for allocating and pricing land for Place of Worship (PW). The revised framework will level the playing field and provide all religious organisations with a chance of obtaining PW land.

2. As a multireligious society, religion and religious organisations play an important role in our social fabric. As such, PW land is planned as part of our residential estates to meet the religious needs of Singaporeans, while ensuring the optimal use of Singapore’s scarce land resources.

3. Over the years, religious organisations have expressed concerns about the rise in prices for PW land. Recognising the significance of these concerns, the Government has been working closely with religious organisations to improve the process of allocating PW land. Our aim has been to ensure that the tender process of PW land is carried out in a manner that prioritises religious organisations with genuine needs. In 2018, the PW land tender framework was reviewed to introduce non-price conditions, such that only religious organisations that contribute to the community and demonstrate a need for space are qualified to bid for PW land. Subsequently, the site would be awarded to the religious organisation that submitted the highest bid price. This approach is generally applied to most PW land, except for mosques, for which the Government directly alienates sites to the Islamic Religious Council of Singapore (Muis) at a pre-determined price set by the Chief Valuer reflecting the fair market value of the site, as mosque development is centrally coordinated by Muis.  

4. Recognising the rising prices for PW land, the Government has been consulting religious groups, to gather their views on the review for the land allocation and pricing framework for PW land. The revised framework was developed to address the rising PW land prices as well as to promote equitable access to PW land for religious organisations. This will better allow Singaporeans to have the space to practise their religion.

Revised Land Allocation and Pricing Framework

5. With the exception of mosques, future PW land will be allocated through a ballot system rather than through a competitive tender (see details in Annex). There will be upfront price certainty as religious organisations will pay a pre-determined price, reflecting the fair market value of the site, as determined by the Chief Valuer.^[1] The price of PW land under this new framework is expected to be lower than the prevailing prices, thereby leveling the playing field for all religious organisations. The PW land must continue to be predominantly for religious uses and worship. Religious organisations will continue to have to meet the existing pre-qualification criteria.

[1] The Chief Valuer will make adjustments to the price based on site-specific factors and year-on-year differences.

6. Religious leaders represented in the National Steering Committee on Racial and Religious Harmony welcomed these efforts to ensure that PW land is allocated in a more sustainable manner.

Lease Renewal Premiums

7. Lease renewal premiums for PW land will be in line with the new pricing framework and are hence similarly expected to be lower than what they are today. Religious organisations renewing their leases will not be subject to the ballot system.

8. While the latest review was ongoing, religious organisations with expiring leases were advised to consider short-term tenancies to allow them to benefit from the revised framework.

Supply of PW Sites

9. The Ministry of National Development plans to release new PW land later this year and will maintain a long-term perspective when planning the supply of various land uses. As always, we will regularly review our Master Plan, which guides our development for the next 10 to 15 years, and balance demands and trade-offs across a wide variety of needs, including PW, community facilities, workplaces, amongst others.

10. Details about the upcoming launches under the revised framework will be announced when ready.

Issued by: Ministry of National Development

Annex

Revised Land Allocation and Pricing Framework for Place of Worship Land

Stage 1: Pre-Qualification Criteria

Religious organisations are to meet each and every criterion as follows:

a. Registered for advancement of religion: Only entities that are established or constituted for the advancement of religion will be allowed to apply for new PW land.

b. Community support and involvement: Religious organisations will need to demonstrate that they have organised regular activities that involve / benefit the wider community in Singapore.

c. Need for space: Religious organisations will need to demonstrate their need for the new dedicated site.

d. Adequate and sustainable local funding: Religious organisations will need to demonstrate that they have adequate and sustainable sources of local funding to acquire the site and to develop and operate the PW.

Only religious organisations which meet the Stage 1 criteria will be eligible for the ballot under Stage 2.

Stage 2: Ballot

Ballot Chances

Religious organisations shortlisted under Stage 1 will proceed to Stage 2 where they will undergo a ballot. Each religious organisation will be given one ballot chance by default. Religious organisations will be given one additional ballot chance for each unsuccessful attempt at obtaining PW land via the tender or ballot process in the past 5 years, capped at a total of 4 ballot chances (see Table 1).

Table 1: Ballot Chances for Religious Organisations with Previous Unsuccessful Attempts

The site will be awarded to the religious organisation that wins the ballot. The RO will then pay the price as determined by the Chief Valuer based on his professional judgement.

Cooling-off Period

To ensure that balloting chances are distributed fairly across religious organisations, the following religious organisations will be subject to a cooling-off period, during which they will not be allowed to participate in the ballot:

a. Religious organisations which have obtained a new site in the past 5 years.

b. Religious organisations which have renewed their lease, tenancy agreement or temporary occupation licence in the past 2 years. This will be applied prospectively, i.e., religious organisations that recently renewed their lease, tenancy agreement or temporary occupation licence prior to 28 May will be allowed to ballot.

*Exceptions may be allowed on a case-by-case basis.