Ministry of National Development's Dual Role of Land Sale and Provision of Public Housing

Ms Tan Su Shan asked the Minister for National Development (a) how does the Ministry address the potential conflicts that may arise from its dual role in land sales and public housing; and (b) how is the objective of profit maximisation in land sales combined with the objective of land allocation at a minimum price to HDB for affordable public housing.

Mr Khaw Boon Wan: There is no conflict. URA and HDB are merely agents when carrying out land sales for the State. The objective of the Government land sales programme is to provide a range of housing options for Singaporeans, meet the demand for commercial properties by the private sector, support economic growth, and implement key development plans for Singapore. Revenue accrues to the past reserves, not to MND, URA or HDB.

State land is priced by the Chief Valuer based on fair market value, in accordance with market conditions and established valuation principles. For public housing developments, HDB buys State land from Singapore Land Authority at the market value assessed by the Chief Valuer. Land that is zoned for public housing attracts a lower valuation as compared to land that is zoned for private housing.

In addition, through housing grants and the policy of pricing new HDB flats substantially below the market prices of comparable resale flats in the vicinity, we can ensure that public housing will always be affordable to first-timer households.

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