13/09/2023
Singapore Real Estate News Update.
BIDS for two 99-year leasehold private housing sites on Tuesday (Sep
12) reflected distinctly more risk-averse sentiment among develop-ers, following several waves of cooling measures and sharply higher financing costs.
Some six bids competed for a parcel along Champions Way in Woodlands, with offers coming in below expectations. At Lentor Close, just two offers were submit-ted.
In comparison, a tender for an executive condominium site in Tengah, which closed on Jun 27, drew nine bids and a record land rate of S$703 per square foot per plot ratio (psf ppr), noted Wong Siew Ying, head of research and content at PropNex Realty.
"In recent tenders, developers displayed low risk appetites, preferring sites with fewer than 500 buildable units and hence, lower risk of not being able to sell everything within the five year ABSD timeframe; as well as sites in the suburbs where demand is less affected by cooling measures, and those with differentiating factors such as proximity to transport nodes, good schools and limited competing supply," said Tricia Song, head of research for Southeast Asia in CBRE.
Nicholas Mak, chief research officer at Mogul.sg, said all the bids in the latest state land tender had come in under S$1,000 ps ppr. "A year ago, the government land sale tenders for similar land parcels were attracting bids that exceeded S$1,000 psf ppr."