Nod to pay market rates for land acquired

PARLIAMENT has approved changes to the Land Acquisitions Act, paving the way for owners of land which is acquired by the Government to be paid the prevailing market rate.

The shift away from using pre-determined levels - which land owners often argued were below market rates and had been a cause of unhappiness in the past - was applauded by MPs yesterday.

Apart from paying market rates, the Government will also take into account a property’s potential value which, according to reports in February, could in some cases reflect its en bloc potential.

Deputy Prime Minister and Law Minister S. Jayakumar who explained the changes to MPs, said the Act - which did not have major changes since being enacted in 1966 - played a pivotal role in Singapore’s development.

It paved the way for major developments such as public housing, industrial parks and key infrastructure projects like Changi Airport.

MPs such as Ms Indranee Rajah (Tanjong Pagar GRC) welcomed the changes, saying it would be a fairer and more equitable reflection of the property’s value.

They also felt the move to pay market rates was long overdue and would go some way to address the unhappiness which affected owners had expressed in the past.

But they also had some further suggestions.

Ms Ellen Lee (Sembawang GRC) asked if the Government could give more time for owners to relocate before the land is taken over.

Mr Alvin Yeo (Hong Kah GRC) urged the Government to develop acquired land as quickly as possible so as to reduce possible disgruntlement from owners.

Prof Jayakumar said it is often not possible to synchronise precisely the acquisition of land with the redevelopment of the land, as developers need time to carry out site works, among other things, before actual work can begin.

He added that new factors sometimes arise after land has been acquired. Changes would thus have to be made to its original planned use and this too, could contribute to a delay in its redevelopment.

To Ms Lee’s point, he said it was a valid one.

But the authorities already give between six and 12 months for owners to relocate, and three to five years if the acquisition was done under a comprehensive redevelopment plan, he said.

Prof Jayakumar, who spoke about the Act’s role in Singapore’s development, asked at one point:
‘Can we do without the Land Acquisition Act? No. Can we reduce the hardships? Yes.’

‘That is the purpose of these amendments.’

Source : Straits Times - 12 Apr 2007