Bidding for land now easier for developers
It is now a little easier for developers to trigger land in the reserve list for sale. These changes were made to make land supply a little more flexible to accommodate demand:
Obviously developers will now get more choice to pick from and a little more flexibility, but whether this will translate to lower prices for buyers is anyone's guess. Developers know that the rule of the game is 'location, location, location' and will probably hold out and only bid aggressively for good sites.
These changes also seem to be the last salvo fired in response to the heated market the government was reacting to earlier in the year. According to National Development Minister Mah Bow Tan:
Several government agencies will be relocated within to kick start growth in the area.
via The Business Times - Land sales tweaked to ensure smoother supply
- A wider variety of land in larger numbers will be made available
- A site on the reserve list will be considered for release if two or more developers submit minimum bids that are close to the reserve price within a reasonable period. Previously only bids that matched or exceeded the reserve price were considered.
- Deposits from applicants have also been reduced from 5% of the minimum bid price to 3%, capped at $5m.
Obviously developers will now get more choice to pick from and a little more flexibility, but whether this will translate to lower prices for buyers is anyone's guess. Developers know that the rule of the game is 'location, location, location' and will probably hold out and only bid aggressively for good sites.These changes also seem to be the last salvo fired in response to the heated market the government was reacting to earlier in the year. According to National Development Minister Mah Bow Tan:
'We don't intend to introduce more measures for now, but we will monitor the market closely. If there are signs that the market will overheat again, we are ready to introduce additional measures to stabilize the market.'
Also, as a little tip in punting direction, it seems the government would progressively release sites at 'new growth areas' Jurong Gateway, Paya Lebar Central and Kallang Riverside for development this year.Several government agencies will be relocated within to kick start growth in the area.
via The Business Times - Land sales tweaked to ensure smoother supply
Posted on 09-03-2010 11:26 | By Francis
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