Government Land Sales Programme FAQ
A. Submission of Applications
Q01: Can an applicant submit more than one application with different minimum prices for one site at the same time?
A01: Applicants should submit only one application per site. In the event that JTC receives more than one application, only the application with the highest minimum price will be considered.
Q02: When can developers start to apply for the reserve sites after the available date?
A02: Developers can start applying for the reserve sites after the detailed sales conditions are made available on the available dates. After that, they can apply anytime until the sites are removed from the reserve list. There is no fixed date or closing date specified for submission of applications.
Q03: Will JTC charge an application fee?
A03: At present, no application fees will be charged. However, if there is any misuse of the system, for example, repeated frivolous applications, application fees or other appropriate measures may be introduced.
Q04: Can a company or person who is debarred by the Standing Committee on Debarment (SCOD), Ministry of Finance, submit an application under the reserve list system?
A04: If a company or person is debarred by SCOD from participating in "all lines of business", the company or person cannot participate in the reserve list system during the debarment period.
Q05: Can a company whose director(s) is debarred by SCOD, participate in the reserve list system?
A05: The company can participate in the reserve list system only if
- The company was incorporated before (and not after) the effective date of debarment of the director(s); and
- The debarment was not for corruption
Q06: If there are more than one company applying jointly for a land parcel, how should the application form be completed?
A06: If an application is submitted jointly by two or more companies/ firms, item 5(B) of the Application Form should be completed to reflect the particulars of all the joint applicants (see sample copy below). If there is insufficient space in the Application Form, a separate sheet of paper listing the particulars of all the joint applicants should be attached together with the Application Form.
Example of how item 5(B) of the Application Form must be completed to provide information on both applicants when the application is submitted jointly by two companies, Company A and Company B:
|(B)||Name of company / firm applying:||Company A||Company B|
|Address of *Registered Office / Place of Business:||Company A's Registered Office Address||Company B's Registered Office Address|
|Registered No. of *Company / Firm:||Registration No. for Company A||Registration No. for Company B|
|Corresponding Address:||Correspondence Address of Company A||Correspondence Address of Company B
|Tel No.:||XXX XXXX||XXX XXXX|
|Fax No.:||XXX XXXX||XXX XXXX|
|Signature of Authorised Person signing for and on behalf of *Company / Firm:||Signature of Authorised Person of Company A||Signature of Authorised Person of Company B|
|Name of Signatory:||Name of Authorised Person of Company A||Name of Authorised Person of Company B|
|Designation of Signatory in *Company / Firm:||For example, Director of Company A||For example, Director of Company B
|NRIC No. of Signatory:||XXXXXXX||XXXXXXX|
|*Delete whichever is not applicable|
B. Acceptance of Applications
Q01: What is considered an acceptable minimum bid price?
A01: The minimum bid price must be at least 85% of the Estimated Market Value (EMV) of the site in order for the bid to be accepted. The EMV will be determined after an application has been received in a sealed envelope.
Q02: Under the procedure, JTC will require the applicant to sign the Agreement and furnish the deposit within two weeks. Will the applicant be allowed to request for more time, for reasons such as the need to seek approval from the Board of Directors?
A02: The offer by JTC will lapse if the applicant does not sign the Agreement and furnish the deposit within two weeks. The applicant should seek in-principle approval of the Board of Directors and arrange for the deposit prior to the submission of application.
Q03: Does JTC reveal the name of the successful applicant?
A03: JTC will not be revealing the identity of the successful applicant.
C. Launch of sale of site by Public Tender
Q01: Why is the application deposit determined at 3% of the minimum price?
A01: The deposit of 3% is in line with other Government agencies selling land. In addition, having the 3% deposit ensures that participants of the tender make their bids seriously.
Q02: Why is the application deposit capped at $5 million?
A02: The cap of $5 million is to lower the cost for developers who trigger larger sale sites for which the deposit amount would be very large.
Q03: Can the period between signing of Tender Agreement and sales launch be shorter than six weeks?
A03: Two weeks is given to the qualified bidder for acceptance of tender agreement. The six weeks period is also for the preparation of the launch of the site and finalisation of tender kits. In addition, time has also been factored in to allow for contingency in case of unexpected delays.
Q04: Will subsequent applicants who submit applications between the time an application is accepted and before a site is launched for sale run the risk of their bids being made known to others?
A04: JTC will not process any subsequent applications once an application has been accepted for a reserve site. All subsequent applications will be returned to the applicants unopened. Developers can be assured that their applications will be kept strictly confidential.
Q05: Will JTC allow an applicant to withdraw from his application?
A05: If the applicant withdraws his application after the Agreement is signed, his deposit will be forfeited.
D. Releasing Reserve Sites for Sale
Q01: A Reserve List site is deemed to have received sufficient market interest if there is more than one party submitting a minimum price that is close to the Government's Reserve Price for the site within a reasonable period. May I know what would be considered 'a reasonable period'?
A01: The evaluation on whether to release a site for sale based on market interest received would depend on prevailing market conditions, the number and level of independent interest expressed for the site as well as the specific circumstances of the site. A period of 6 months, for instance, would be considered a reasonable period.
Q02: What is considered to be close to the Chief Valuer's Reserve Price? Is there an acceptable price range?
A02: The Government does not fix a specific price or price range in considering what is acceptable before a site is released for sale, as this would vary depending on a number of factors including the prevailing market conditions, the number of independent bids received for the site, and the specific circumstances of the site.