Lawrence Wong and Chan Chun Sing; Parliament

Refusing to reveal the land prices and government profits from the sale of public housing, Minister of National Development Lawrence Wong said in Parliament on Wednesday (Feb 13) that he would only reveal that land prices for HDB development are pegged to “market rate”.

The PAP Minister refused to give further explanation on “market rate” and the actual profits the Singapore government is profiting from the sale of land lease:

“The average price of land paid for private housing developments bought through the Government Land Sales Programme between 2015 and 2018 was about $7,000 per sq m, excluding the Core Central Region. In the same period, the Housing Board paid an average of about $2,000 per sq m for land for public housing in mature estates. The valuation is done in accordance with market conditions and established valuation principles.”

However, based on the vague S$2,000/sqm figure the Minister provided, it is estimated that HDB made a gross profit of S$88,944/sqm from a flat of 16 storeys. The average sale price for a 4-room BTO flat at Whampoa is priced at S$5,684/sqm (S$523,000 with 92 sqm).

Each year, the Singapore Land Authority made about S$4 billion in revenue from the sale of land. The money is transferred to sovereign wealth fund company, GIC, where Prime Minister Lee Hsien Loong is permanent Chairman.