Fraud Blocker
Your search results

Is it Possible for the Government to Truly “Reclaim Your Home” in Singapore?

Posted by Jayson Ang on January 25, 2025
| 0

The Singaporean government possesses considerable authority to reclaim land, whether freehold or not, in accordance with the Land Acquisition Act. Thankfully, this authority has been exercised infrequently since the 1960s, a period during which it was essential for constructing mass housing and restructuring the city. However, this does not imply that it has been entirely unused; in fact, some private property owners have been taken aback by its application even in more recent times. Here’s an overview:

What is the Land Acquisition Act?

This legislation permits the government to reclaim privately owned land for developments that serve the public interest. Although its usage has been limited in recent years, there was a time between 1959 and 1984 when the act facilitated the recovery of approximately 177 square kilometers of land, which represented roughly one-third of Singapore at that period.

There are only three straightforward criteria:

5 (1) Whenever any particular land is needed – 

  1. For any public purpose
  2. by any person, corporation or statutory board, for any work or an undertaking which, in the opinion of the Minister, is of public benefit or of public utility or in the public interest; or
  3. for any residential, commercial or industrial purposes

This topic is not without its debates. You will encounter individuals who will passionately express their views on the acquisition of residential land for the purpose of selling it to private developers, questioning whether this action truly serves the “public utility” or is genuinely “in the public interest.”

(However, that is merely their perspective, and the government is legally permitted to proceed with such actions.)

Is the government truly capable of “reclaiming land at a low cost”?

This is a prevalent concern among landowners. What if your property is seized, leading to significant losses due to inadequate compensation? Let’s explore the origins of these anxieties:

Historically, compensation for land appropriated by the government did not reflect its value at the time of acquisition. For instance, in 1987, the compensation rates for land were based on their values from 1973. For properties acquired between 1987 and 1993, the values were aligned with those from 1986, and so on. This often resulted in financial losses since land values typically appreciate over time, which likely contributed to the longstanding grievances about how the government “acquires land at low prices.”

However, improvements have been implemented. On February 12, 2007, the legislation was revised to ensure that current values (i.e., those at the actual time of acquisition) are taken into account. Consequently, property owners since that date have benefited from much fairer compensation if their land is expropriated, in contrast to the experiences of previous generations.

Recent instances of land acquisition and the associated challenges include:

  1. The Chuan Park Car Park Case
  2. The church parking lot controversy
  3. Residences displaced due to the Thomson-East Coast Line requirements
  4. The case involving properties at 68 to 74 Thomson Road
  5. Utilizing the area beneath your condominium

1. The Chuan Park Car Park Case

In June 2003, Chuan Park, a leasehold condominium completed in 1985, lost 220 square meters of land to accommodate the Circle Line. This area included approximately 17 parking spaces, and residents were quite frustrated when they learned that the compensation amount was just $1.

However, it was contended that this land acquisition would bring the Lorong Chuan MRT station much closer to Chuan Park, and that the anticipated increase in property values from the loss of those 17 parking lots made the decision relatively equitable.

While this reasoning may seem logical on paper, there are still ongoing debates about it today. Such situations can lead to misunderstandings, which often contribute to the spread of rumors regarding the government “taking properties” for little cost.

2. The Parking Lot Controversy 

This is referenced in the same link above. In this case, a church lost part of its parking lot for just $1. The reason for this was a planning error that designated the area as a “road.”

(If the area is classified as a road, it’s not surprising that the owner received only $1, since the land cannot be utilized for anything else.)

Ultimately, it was a case of mislabeling, and the government later offered $64,000 in compensation once the situation was clarified. However, before this resolution, rumors circulated again about the government acquiring land for just $1.

(The residents of Chuan Park, who received $1 for their 17 parking spaces, likely had their own opinions on the matter!)

3. Residences displaced due to the Thomson-East Coast Line requirements

In 2016, the Thomson-East Coast Line (TEL) construction led to the acquisition of 15 properties in the Katong Area. This included six semi-detached homes and nine walk-up apartments, amounting to a total compensation of $45 million.

This resulted in an average compensation of approximately $1,270 per square foot. Some homeowners contested this amount, with one individual asserting that a fair valuation would range from $1,300 to $1,600 per square foot. Out of curiosity, we looked into this claim and found it to be incorrect.

Source: Square Foot Research

The average for 2016 was $1,189 to $1,273 psf for 2016, which last appreciated to $1,636 psf in May this year. So it was actually an average deal for the residents after you tack on the inconveniences of having to move.

4. The case involving properties at 68 to 74 Thomson Road

This building, which was freehold, was finished in 1964. Engineers determined that it was too hazardous to keep occupied because earthworks for the North South Corridor (NSC) posed a threat to its structural stability.

Details regarding compensation for this case remain unclear, though some owners felt they received inadequate compensation. Nevertheless, this incident served as a crucial reminder that owning a freehold property does not guarantee protection against land acquisition. It raises concerns about the risks associated with owning a highly central property—such as a freehold in a major neighborhood hub—especially when new road and rail connections are planned.

Additionally, many people might not anticipate that land acquisition would replace what is likely a more lucrative en-bloc sale.

5. Utilizing the area beneath your condominium

In 2015, the State Lands Act underwent amendments, granting you ownership of the land beneath your home up to a depth of 30 meters; anything beyond that depth falls under government jurisdiction. The amendment also enables the government to assert claims over airspace and subterranean space without needing to first claim the surface land, although this largely doesn’t impact homeowners directly.

So, what has sparked this newfound interest in claiming the land beneath residential properties? The answer seems to lie in the concept of underground cities. Rather than solely expanding upward, Singapore may look to develop downwards as well, concealing roads and other infrastructure below ground level. This approach could potentially alleviate our traffic issues by relocating roads underground, freeing the surface primarily for pedestrian use.

As of now, the implications of these changes remain to be seen, and it will likely be some time before they materialize. When the time comes, it will be interesting to observe how Singaporeans respond to the prospect of highways, train lines, and other constructions being built beneath their homes.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

  1. Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
  2. Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …


Downsizing From A Spacious 4-Bedroom Condo To A Cozy 2-Bedder: How I Chose A Condo Over A HDB
All Blog Posts Buying Tips

Downsizing From A Spacious 4-Bedroom Condo To A Cozy 2-Bedder: How I Chose A Condo Over A HDB

TLDR Mdm Sim's decision to trade her four-bedroom house for a two-bedroom condo is explored, highlighting the benefits of right-sizing....
Read More
Is Lentor Mansion: The 5th New Lentor Condo in 2 Years Still Worth Your Attention?
All Buying Tips Opinion

Is Lentor Mansion: The 5th New Lentor Condo in 2 Years Still Worth Your Attention?

TLDR for "Exciting Updates from Lentor Mansion" Lentor Mansion, a new project in the vibrant Lentor region, is set to...
Read More
Will Your HDB Flat Provide For Your Retirement?
All Blog Posts Buying Tips

Will Your HDB Flat Provide For Your Retirement?

TLDR Singapore's property market presents challenges with high prices, particularly in private housing, while public housing remains relatively more affordable....
Read More
Top 5 : Best Laser Tag Arenas in Singapore
Mandarin Top 5

Top 5 : Best Laser Tag Arenas in Singapore

Laser tag has become an increasingly popular activity in Singapore, offering adrenaline-pumping experiences for people of all ages. This exciting...
Read More
Top 5 Cocktail Bars in Singapore for a Night Out
Mandarin Top 5

Top 5 Cocktail Bars in Singapore for a Night Out

Singapore, the vibrant city-state known for its impressive skyline and diverse culture, is also home to an exceptional cocktail scene....
Read More
Pitfalls of Owning a Boutique Condo: 5 Insider Insights You’ll Wish You Knew Earlier
All Buying Tips Opinion

Pitfalls of Owning a Boutique Condo: 5 Insider Insights You’ll Wish You Knew Earlier

TLDR When considering boutique condos, be mindful of potential drawbacks such as dominating families influencing rules, lack of privacy due...
Read More
5 Essential Tips for Renting Property in Singapore as a Foreigner: A Guide for Newcomers
Buying Tips Mandarin Top 5

5 Essential Tips for Renting Property in Singapore as a Foreigner: A Guide for Newcomers

TLDR Renting property in Singapore as a foreigner can be challenging due to the high cost of living. To navigate...
Read More
The Lease Buyback Scheme Is A Strategy That Could Help You Retire Comfortably In Your HDB Flat
All Opinion Selling Tips

The Lease Buyback Scheme Is A Strategy That Could Help You Retire Comfortably In Your HDB Flat

TLDR The Lease Buyback Scheme (LBS) trend among older Singaporeans is slowly gaining momentum, despite initial reluctance. The scheme allows...
Read More
Top 5 Best Secret Gardens in Singapore
Mandarin Top 5

Top 5 Best Secret Gardens in Singapore

Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to a plethora of hidden...
Read More
Top 5 Best Secret Running Routes in Singapore
Mandarin Top 5

Top 5 Best Secret Running Routes in Singapore

Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also a haven for runners seeking scenic...
Read More
Planning for Retirement: Considerations for Downsizing Your Property
All Blog Posts Buying Tips

Planning for Retirement: Considerations for Downsizing Your Property

TLDR Downsizing your home for retirement can bring financial security, closer family ties, and new adventures. Consider the benefits of...
Read More
Top 5 Places to Buy Local Art in Singapore
Mandarin Top 5

Top 5 Places to Buy Local Art in Singapore

Singapore, a melting pot of cultures and traditions, is not only known for its breathtaking cityscape, delectable food, and shopping...
Read More
Should We Upgrade to a Condo Now or Wait for Interest Rates to Go Down?
All Blog Posts Buying Tips

Should We Upgrade to a Condo Now or Wait for Interest Rates to Go Down?

TLDR Considering the Singapore property market trends and financial factors, it's crucial to make informed decisions about upgrading from an...
Read More
The Top 10 Traits Of A Good Real Estate Agent
All Blog Posts Buying Tips Top List

The Top 10 Traits Of A Good Real Estate Agent

TLDR Jayson Ang, a reputable real estate agent in Singapore, offers extensive experience and a data-driven approach to guide clients...
Read More
Discovering the Response of Private Property Owners towards the 15-Month Wait-Out Phase
All Buying Tips Selling Tips

Discovering the Response of Private Property Owners towards the 15-Month Wait-Out Phase

TLDR The blog post discusses the impact of the 15-month wait-out period cooling measure on private property owners in Singapore....
Read More
4 Key Factors to Consider When Purchasing a Private Property for the First Time
All Buying Tips Opinion

4 Key Factors to Consider When Purchasing a Private Property for the First Time

TLDR When considering buying or selling property in Singapore, it's crucial to understand factors like Additional Buyer’s Stamp Duty, Loan-To-Value...
Read More
ANALYSIS: Unveiling the HDB Towns with the Steepest and Lowest Price Surges!
All Buying Tips

ANALYSIS: Unveiling the HDB Towns with the Steepest and Lowest Price Surges!

TLDR The real estate market for HDB flats in Singapore has witnessed significant growth, with prices reaching new highs. The...
Read More
Singapore’s Urban Landscape Transformation: 5 Key Things You Need to Know
Mandarin Top 5

Singapore’s Urban Landscape Transformation: 5 Key Things You Need to Know

Singapore's urban landscape has undergone significant changes over the years, with the city constantly evolving to create a sustainable and...
Read More
5 Reasons : Why Singapore’s Rental Market Is Still Lucrative For Property Investors
Mandarin Top 5

5 Reasons : Why Singapore’s Rental Market Is Still Lucrative For Property Investors

Singapore's property market has always been an attractive investment option due to its stability and potential for high returns. While...
Read More
Top 5 Factors : What I Wish I Had Known about Singapore Property Market
Mandarin Top 5

Top 5 Factors : What I Wish I Had Known about Singapore Property Market

Singapore's property market has always been an attractive investment option for both local and foreign investors. With its stable economy,...
Read More
1 11 12 13 14 15 27

Compare Listings