PROCEEDS from land sales are expected to slip six per cent in the coming fiscal year to $9.8 billion, according to the 2008 Singapore budget.

That follows an expected rise of 65 per cent from land sales in the current fiscal year to $10.5 billion.

This beat the government's original estimate for land sales of $3.08 billion when it announced the 2007/08 budget, as the city-state saw a booming property market.

The government will offer 12 sites for hotel development this year on top of land for office, factory and residential development.