SINGAPORE – Seven religious organisations have renewed their land leases since revised policies aimed at lowering the price of land allocated to places of worship took effect.

As at Oct 30, 32 religious organisations had applied to renew their leases, with 25 still being processed, said National Development Minister Desmond Lee in a written parliamentary reply in November.

He added that “the average rate paid by the seven religious organisations is on average around 47 per cent less than the rates for new place of worship sites in recent tenders prior to the implementation of the revised framework”.

Asked how this figure was calculated, a spokesperson for the National Development and Law ministries told The Straits Times that winning bids for place of worship land tenders between 2019 and 2020 were used, as these bids “reflect the land premium for place of worship sites, including for lease renewal, prior to the implementation of the revised framework”.

The ministries did not provide statistics on how much the religious organisations are paying for lease renewals now compared with those that had renewed their leases before the policies were changed, when asked.

Under the revised framework, new place of worship sites are awarded through a ballot, where winning bidders pay a pre-determined price.

In addition, lease renewal premiums, which previously factored in recent winning bids from open tenders, are now priced based on the land’s market value and site-specific factors such as location and the remaining lease tenure.

The allocation and pricing policies were revised after competitive bidding by religious organisations in open tenders drove up place of worship land prices sharply.

Checks by ST found that four new place of worship sites were awarded by tender between 2019 and 2020 – two for churches and two for Chinese temples.

On average, the winning organisations paid $2,214.36 per sq m per plot ratio for their respective 30-year leases.

Based on a 47 per cent drop, the seven organisations that have renewed their leases are paying an average of $1,173.61 per sq m.

The ministry spokesperson said that generally, lease renewal applications are considered after half the tenure is up, and no later than three years before the lease expiry.

To allow religious organisations to benefit from the new policies, the Government has granted exceptions to religious organisations on short-term interim tenancies and those with leases expiring by 2025 by allowing them to apply for renewal no later than six months before their agreement lapses.

Of the 32 organisations that applied for renewals as at Oct 30, 17 had leases expiring by 2025.

The remaining 15 had taken up short-term tenancies after their leases had expired – an arrangement that the Government facilitated to allow them to take up fresh leases only after the new policies were rolled out.

Prinsep Street Presbyterian Church is among the religious organisations that renewed their leases after the policy changes.

The church took up a short-term tenancy after its 99-year lease expired in September 2022, before renewing its lease for 30 years in October for about $1,194 per sq m per plot ratio.

A spokesman for the church’s lease renewal committee told ST that this rate is significantly lower than a professional valuer’s assessment that was made before the new land valuation polices were announced.

He said money saved will help the church – a national monument – to pay for essential repair works, as well as upgrades that will make its premises more accessible to the elderly. The savings will also go towards community programmes such as a shelter for rough sleepers that the church operates.

The spokesman added that while the church had hoped for the option of a longer lease, which the committee feels is befitting of the church’s monument status, its leadership is grateful for the outcome of the policy review and the clear guidance of officers from the Singapore Land Authority.

As for new sites, two have been put up for ballot thus far and applications closed on Nov 14.

A church site in Sengkang West was released for ballot at $936 per sq m per plot ratio, drawing four applicants, while a Chinese temple site in Sembawang was released at $990 per sq m per plot ratio, drawing two applicants. The ballot for these sites will likely be held in February 2024.

Four more place of worship sites are slated to be put up for ballot in 2023 – two for church use in Tampines and Toa Payoh, and two for Chinese temple use in Punggol and Tengah.