Churches can now lease land at lower prices after the Government revised the way land for places of worship is priced and allocated.

Instead of awarding land to the highest bidder through a competitive price tender, the Government will now allocate land for places of worship through a ballot, at a fixed price determined by the Chief Valuer that reflects the market value of the site.

The new framework, which was announced on May 28 and kicks in from the third quarter of 2023, removes the need for religious organisations to outbid one another, thereby lowering the price of land for places of worship. It also allows religious groups with fewer resources to have more access to land.

Churches looking to renew their leases will also benefit from this new fixed-price framework. Previously, recent bids were factored into the valuation of lease renewal premiums.

The revision came as a response to the concerns of religious organisations over the rising prices of land for places of worship over the years.

“We hope that the new framework will give greater assurance to religious organisations, so that they can focus on what they do best, which is serving the community and promoting religion,” Edwin Tong, Minister for Culture, Community and Youth & Second Minister for Law said in a press release to media.

How it works

Churches intending to ballot for a new site can find a list of sites on HDB’s website – with the land premium announced upfront – and apply for them when they are released. Instructions on how to apply will be published when the sites are launched for sale.

The Government will then conduct a random ballot for applicants that meet the following eligibility criteria:

• Is a registered religious organisation;
• Organises regular activities that involve or benefit the wider community;
• Has a need for a new site;
• Has adequate and sustainable sources of local funding to acquire and operate the site. 

Each eligible applicant will be given one ballot chance by default. Applicants will be given one additional ballot chance for each unsuccessful attempt at obtaining land in the past five years, capped at a total of four ballot chances.

The ballot will then be carried out and the site will be awarded to the religious organisation that wins the ballot.

The offer is valid for three months, and the successful organisation has to accept the offer and pay 25% of the land premium (excluding the deposit) within 28 days, and the remaining 75% within 90 days.

To ensure that balloting chances are distributed fairly, the following two groups will not be allowed to participate in the ballot:

• Religious organisations that have obtained a new site in the past five years
• Religious organisations that have renewed their lease, tenancy agreement or temporary occupation licence in the past two years. (This will be applied prospectively, meaning that those who renewed their lease, tenancy agreement or temporary occupation licence prior to May 28 will be allowed to ballot.)

Churches who are on short-term tenancy or whose lease is expiring by 2025 will be invited by the Singapore Land Authority (SLA) to apply for a lease renewal. If interested, churches must submit an application at least six months before tenancy or lease expires.

SLA will then issue a lease renewal offer with the land premium within 20 weeks of application. The offer is valid for six weeks and churches have to accept the offer and pay the full land premium within six weeks from date of offer.

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