Written Answer by Minister for Law, Mr K Shanmugam, to Parliamentary Question on Applications for Extension of Lease Period for Residential Properties
8 May 2017 Posted in Parliamentary speeches and responses
Mr Gan Thiam Poh (Member of Parliament for Ang Mo Kio GRC)
To ask the Minister for Law (a) how many applications have been received and approved for the extension of the lease period for residential property owners to reinstate the lease to 99 years; (b) how many of them have a balance lease of 50 or 60 years prior to the application; and (c) how does the Land office compute the land rent for these applicants and whether such computation will be reviewed periodically.
Generally, land will revert to Government upon expiry of a lease. The land will then be re-allocated, in accordance with planning guidelines, for other land use needs, for example for more intensified use.
Nevertheless, the Government will consider the renewal of State leases on a case-by-case basis if they are in line with planning intention and help to further specific economic and social objectives.
Since 2008, the Singapore Land Authority (SLA) has granted renewals to seven residential developments and the leases were topped up to 99 years. In all seven cases, the renewal of the leases was necessary to facilitate the redevelopment and intensification of the residential land parcels in question.
If the Government decides that a lease renewal can be granted, the property owner will have to pay a lease renewal premium upfront in order to effect the lease renewal. The lease renewal premium is assessed by the Chief Valuer’s Office based on the prevailing market value at the point of renewal.
Last updated on 11 May 2017