Frequently Asked Questions on Application for Reserve List Sites

 

When can developers start submitting applications to launch reserve list sites for public tender?

Developers can apply after detailed sales conditions are released in the One-Stop Developer's Portal. After that, they can apply anytime until the sites are removed from the reserve list. More information on the Reserve List sites that are available for application, and their schedule for release are available here.

Can I submit applications for sites to be put up for tender that are not in the reserve list?

No. You can only submit applications for sites in the reserve list that are ready for sale.

If there is more than one company applying jointly for a land parcel, how should the application form be completed?

Please refer to Appendix A of the Application form.

Can I submit more than one reserve list site application, each with different minimum bid prices, for the same site, at the same time?

No. You should only submit one application per site. If you submit more than one application, only the one with the highest minimum bid amount will be considered.

Are there any application fees when making an application under the Reserve List System?

No. However, the government may introduce appropriate measures such as application fees if there is misuse of the system (e.g. repeated frivolous applications).

What is the deadline for submission of applications for reserve list sites?

There is no fixed date or closing date specified for developers’ submission of applications.

Can an applicant withdraw an application submitted under the Reserve List System?

No. If the applicant withdraws his application after the agreement has been signed, the deposit submitted by him will be forfeited.

Why is the application deposit determined at 3% of the minimum price?

The deposit of 3% is to discourage frivolous applications.

Why is the application deposit capped at $5 million?

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.

What is the minimum bid amount for a land sale tender?

For the minimum bid to be accepted, it must be at least 85% of the Chief Valuer’s (CV) Estimated Market Value (EMV) for the site. The EMV is determined by the CV after an application has been received. It is forwarded to the land sales agency in a sealed envelope. The CV’s envelope and the applicant's envelopes are opened at the same time during the evaluation of the application.

Will HDB set a reserve price or minimum land price to guide the developers in their bid for the land to ensure affordability of the flats?

It is not the Government’s practice to disclose any reserve price in the tender of State land for property development. In the sale of Government land, the Chief Valuer will submit the estimated market value (EMV) of a sales site only on the date of the close of tender. In the process of tender evaluation, the Government’s Land Sales Agents will take into account the Chief Valuer’s EMV, the prevailing market conditions and other relevant factors before a recommendation is made for the award/ rejection of tender for a sales site.

What is considered to be close to the Chief Valuer's Reserve Price? Is there an acceptable price range?

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.

Who assesses the market value of the sale site? Will the government sell the site if the tender bid is lower than the assessed market value?

The market value of a sale site is determined by the Chief Valuer according to its approved use and the terms and conditions of the sale. The tender bids received at the close of the tender will be evaluated taking into consideration the assessed market value determined by the Chief Valuer. The Government reserves the right not to accept the highest or any tender bid received in a land tender exercise.

A Reserve List site is deemed to have received sufficient market interest if there are 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'?

The evaluation on whether to release a site for sale based on market interest received would depend on the 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.

When are the reserve list sites launched for sale after the Agreement is signed?

A six-week period is allotted between the signing of the Agreement and the sales launch for contractual purposes and to serve as a contingency for unexpected delays. But in most cases, reserve list sites are launched for sale within two weeks after the Agreement is signed.

Can an applicant request for an extension for signing the Agreement and payment of the deposit for a land sale tender, for reasons such as seeking the approval of the Board of Directors?

No. The government’s offer will lapse if the applicant does not sign the Agreement and furnish the deposit within two weeks.

The tender period of 4 weeks may be too short for big sites where developers may need more time to source for financial arrangement and /or joint-venture partnership.

The tender period for sites triggered under the Reserve List system would depend on the complexity of the respective sites. For a typical residential site, a tender period of 4 weeks will be applied.

Does the government announce the name of the successful applicant for a land sale tender?

No, the identity of the successful applicant is not revealed.

Are applications for reserve list sites confidential?

Yes. Applicants can be assured that their applications will be kept strictly confidential. Even those that are submitted after an application has been accepted and before a site is launched for sale remain confidential. These will be returned to the applicants unopened as HDB does not process any subsequent applications once an application has been accepted for a reserve list site.

Recommended