SLA Rides The Bulls

Source : TODAY, Thursday, October 4, 2007

IN A testament to the bullish property sector, it has been a year of records for the Singapore Land Authority (SLA).

Its latest annual report revealed that revenue collected from State land sales has reached a nine-year record high of $6.3 billion, up from $5.5 billion the previous year.























Private sales in major projects such as the Marina Integrated Resorts, Southern Sentosa Cove and the Civic, Cultural and Retail Complex at One North accounted for more than half SLA's total land proceeds, with takings totalling some $3.5 billion in the financial period ending in March. This is up from $3.3 billion previously.

The public sector too bought their fair share of state land. Sales to entities such as the Singapore Tourism Board, Sentosa Development Corporation and JTC contributed to $2.7 billion in takings, up from $2.2 billion the previous FY, marking another record high.

Analysts, such as director of Dennis Wee Properties, Mr Chris Koh, said these figures are not surprising. "The last financial year, the Government has been releasing more land for sale in light of the brighter economy, so it explains the takings," said Mr Koh.

And in a bid to alleviate the CBD crunch, the SLA released 13 landmark State properties for dedicated office space between April last year and this March for "adaptive reuse".

It's likely that more such plots will be opened up for office use in the coming months, said Mr Koh as the demand for office space is still very strong. "Lots of foreign companies are still coming in and the Government has to ensure that there is enough office space to curb soaring rentals as this will have the detrimental effect of driving business away from Singapore."

SLA last year also tendered and awarded — for $1.75 million — three plots totalling 7.8ha in Lim Chu Kang for agri-tainment purposes in a bid to create a recreational countryside featuring a mix of agriculture, recreation and entertainment elements like farm stays and fishing and rock-climbing.

Non-profit organisations were not forgotten. One beneficiary, the Animal Concerns Research and Education Society (Acres), got a three-month rent-free period on a 2-ha site in Sungei Tengah for its wildlife rescue centre.

According to the annual report, SLA's total income increased from $80.8 million to $88.6 million, and its agency fee incomes achieved new highs, increasing 8 per cent from $50.8 million to $54.8 million.

Major Land Sales FY 2006/2007
.Marina IR (picture) ($1.2b)
.One North Civic, Cultural and Retail Complex ($180m)

Private land sales proceeds
.FY02 1.2b FY03 684m FY04 290m FY05 $3.3b FY06 $3.5b

Public land sales proceeds
.FY02 784m FY03 $1b FY04 $1.7b FY05 $2.2b FY06 $2.7b