{"id":113695,"date":"2020-01-17T10:10:14","date_gmt":"2020-01-17T03:10:14","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-to-remain-cautious-in-aggregating-land-in-2020\/"},"modified":"2020-01-17T11:12:37","modified_gmt":"2020-01-17T04:12:37","slug":"developers-to-remain-cautious-in-aggregating-land-in-2020","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-to-remain-cautious-in-aggregating-land-in-2020\/","title":{"rendered":"Developers' to remain cautious in aggregating land in 2020"},"content":{"rendered":"


\nDevelopers have slowed down in their land-banking activity as they wait for demand for private homes to grow.\u00a0
\nHaving replenished their land banks during the 2016 to 2018 en bloc fever, developers have slowed down in their land-banking activity, with UOL and City Developments each acquiring just one Government Land Sales (GLS) site in 2019.
\nWith this, DBS Group Research expects developers\u2019 cautious stance in land-banking to continue this year, reported Singapore Business Review.
\n\u201cWith the government continuing to maintain a fairly low supply in the first half 2020 GLS, the infusion of new supply is likely to be more moderate and over time in the hope of meeting the annual demand for private homes,\u201d said DBS analyst Derek Tan.
\nThe hike in Additional Buyer\u2019s Stamp Duty (ABSD) from 15% to 25% and the additional 5% non-remittable ABSD also increased the capital commitment as well as significantly raised the risk for developers eyeing to grow their land banks.
\n\u201cWhilst developers might apply for remission of the 25% ABSD, expectations of a slowdown in sales velocity in 2019 might make developers rethink their land-looking (especially for the larger sites) altogether,\u201d noted Tan.
\nDevelopers focused on clearing stocks
\nDevelopers have put aside their desire to expand their land bank and continued to clear their inventories on the books instead.
\nDBS Group Research\u2019s estimates showed that most of the listed developers that focused on clearing their inventory achieved a sell-through rate of almost 40% to 50%.
\nAmong the exceptions include Kingsford, which registered a sell-through rate of 0% owing to the delay of its sales license due to the former Normanton Park site. GuocoLand and Allgreen also posted a low sell-through rate of 12% and 13%, respectively, as of the third quarter of 2019.
\nTo avoid the increased cost of acquiring land, some developers resorted to land-banking via mergers and acquisitions (M&A) with other developers. In fact, 2019 saw over $17 billion worth of such deals.
\nNotable deals include Ascendas Group\u2019s acquisition by CapitaLand and UOL\/UIC\u2019s acquisition of the remaining stakes in Marina Centre Holdings, which enabled the consortium to extract value via selective redevelopment by tapping on government schemes to boost asset values via increased gross floor area or residential developments.
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Developers’ to remain cautious in aggregating land in 2020<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Developers have slowed down in their land-banking activity as they wait for demand for private...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-113695","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-tzN","jetpack-related-posts":[{"id":114103,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-cautious-gls-bid-causes-8-20-drop-in-land-prices\/","url_meta":{"origin":113695,"position":0},"title":"Developers\u2019 cautious GLS bid causes 8-20% drop in land prices","date":"January 14, 2020","format":false,"excerpt":"\r The muted sales take-up rates seen in existing projects in the vicinity of both sites are possible reasons that developers have placed lower bids. The cautious approach employed by developers towards bidding for land has caused an 8% to 20% drop in land prices including the 5% Additional Buyer\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":113529,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/city-developments-mcl-land-and-oxley-and-partners-post-high-2019-sales\/","url_meta":{"origin":113695,"position":1},"title":"City Developments, MCL Land and Oxley and Partners post high 2019 sales","date":"January 10, 2020","format":false,"excerpt":"\r Oxley and Partners have cleared 50% of units across 11 projects. Photo: 1953 by Oxley According to a chart by a DBS Bank, the top 10 developers by units have sold 13% to 50% of their total units as of Nov 2019, reported Singapore Business Review citing a DBS\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2020\/01\/DBS-Sell-Through-Rate-2019.png?fit=843%2C550&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":28903,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/gls-bids-rise-amid-strong-demand\/","url_meta":{"origin":113695,"position":2},"title":"GLS bids rise amid strong demand","date":"October 7, 2016","format":false,"excerpt":"\r Fewer Government Land Sales launches this year has contributed to fierce competition among developers and escalating land prices. (Photo: Nikki De Guzman) The number of bids for Government Land Sales (GLS) launches has been on the rise this year amid fierce competition among developers to acquire land sites, reported\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":59340,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ramped-up-land-supply-may-not-be-enough-for-developers-analysts\/","url_meta":{"origin":113695,"position":3},"title":"Ramped up land supply may not be enough for developers, analysts","date":"June 30, 2017","format":false,"excerpt":"\r \u00a0 Analysts believe the ramped up supply of development sites under the Government Land Sales (GLS) programme for H2 2017 is insufficient to meet the developers\u2019 demand for sites given the declining stock of unsold private homes. Announced yesterday, the H2 2017 GLS Programme comprise six sites on the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35282,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-caution-exercised-in-bidding-activity\/","url_meta":{"origin":113695,"position":4},"title":"More caution exercised in bidding activity","date":"November 22, 2016","format":false,"excerpt":"\r Developers have shifted their focus to the private market, with Roxy-Pacific signing a $33.25 million deal for Harbour View Gardens. (Photo: Colliers International) Edmund Tie & Co believes property developers are becoming more cautious with bidding in government land sales (GLS) exercises, resulting in the clustering of bids within\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":76194,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-seeks-more-details-on-loans-for-property-projects\/","url_meta":{"origin":113695,"position":5},"title":"MAS seeks more details on loans for property projects","date":"January 10, 2018","format":false,"excerpt":"\r The Monetary Authority of Singapore (MAS) placed more scrutiny on the way banks are funding property development projects, by gathering more data from them via a new survey sent out last month, reported The Business Times. The move comes as developers made a slew of aggressive land deals last\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/113695"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=113695"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/113695\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=113695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=113695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=113695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}