Developers from China & their aggressive bids in Singapore land Tender
Though Developer from China & Hong Kong maintained their present in land bids & collective sales. Analysts realised that they are offer highest price in bids as before.
At the same time, other developers are not eager to participate due to huge land-banks bought from last year collective sales. Another reasons are cooling measures, which Government introduced last year & additional buyer’s stamp duty (ABSD). Market also noticed a significant drop in number of successful tenders i second half of 2019.
Data is showing that the number of successful bid in private & public of developers from China & Hong Kong dropped from over 16% to around 11% in first quarter of 2020. This is includes Government Land Sale (GLS) all private land tenders for various types of developments but excludes lands for commercial, hotel & industrial land.
Developers form Hong Kong & China in Singapore
Developers from China & Hong Kong rather take a careful approach in biddings for Government Land Sale Program. She added that uncertainties of political tensions & trade war with US with China might cause these sentiments. On top of that Additional Stamp Duty (ABSD) & cooling measure might added weight in to it and causes developers to focus on existing land & developments on hand.
Another analyst said that it is still unclear this situation will give advantage to other developers. He is suggesting that the result of tenders at Tan Quee Lan Street and Bernam Street might indicate the situations.
Some suggestions saying that success collective sale case of developers from China & Hong Kong from 2016-2018 might cause slowing down in participations in first half of 2018 GLS. However they are quick in decisions & actions during 2014-2016
Actions & Trends
Among these cases are “Normanton Park to Kingsford Huray Development for S$830.1 million in 2017”, “GLS land at Stering Road by Logan Property and Nanshan Group of China for some S$1 billion in 2017. As well as sale of Shunfu Ville to Qingjian Realty for S$638 million in 2016 & HUDC Estate at Florence Regency for S$629 million by Logan Property.
Analyst pointed that with today market situation, developers might want to concentrate on th developents on hand before looking further. Nevertheless with this market condition in singapore, developers from these 2 countries might to look beyond Singapore to Malaysia, Thailand & Philippines in time to come..
This article is responding to & analyse the News Article:
“China, HK developers temper their bids in Singapore land tenders“
Source: The Business Times
By NISHA RAMCHANDAN
26 July 2019