{"id":114103,"date":"2020-01-14T11:13:20","date_gmt":"2020-01-14T04:13:20","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-cautious-gls-bid-causes-8-20-drop-in-land-prices\/"},"modified":"2020-02-07T13:05:39","modified_gmt":"2020-02-07T06:05:39","slug":"developers-cautious-gls-bid-causes-8-20-drop-in-land-prices","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-cautious-gls-bid-causes-8-20-drop-in-land-prices\/","title":{"rendered":"Developers\u2019 cautious GLS bid causes 8-20% drop in land prices"},"content":{"rendered":"


\nThe muted sales take-up rates seen in existing projects in the vicinity of both sites are possible reasons that developers have placed lower bids.
\nThe cautious approach employed by developers towards bidding for land has caused an 8% to 20% drop in land prices including the 5% Additional Buyer Stamp Duty (ABSD), for the first batch of Government Land Sales (GLS) tenders for the year.
\nAnalysed: The Three GLS Residential Confirmed Sites For 1H 2020
\nThere were nine and seven bids for two residential sites in Outside Central Region (OCR) and Core Central Region (CCR) respectively, with City Development having the highest bid for the Irwell Bank Road site in River Valley with $584 million ($1,515 psf ppr) and Wee Hur bidding for the Jalan Bunga Rampai, Bartley site for $93 million ($885 psf ppr).
\nWhile these bids were lower compared to that of previously awarded GLS or en-bloc sites within the vicinity, land prices have eased by 8% (Irwell Bank site) to 20% (Bartley site) in contrast to the nearest comparison (most recent land sale in the vicinity), reported Singapore Business Review citing DBS Group Research.
\nRead our two-part series of the URA Master Plan 2019.\u00a0
\n\u201cThe muted sales take-up rates seen in existing projects in the vicinity of both sites are possible reasons that developers have placed lower bids, taking a more cautious approach in terms of their bidding strategy,\u201d said Rachel Tan, analyst for DBS Group Research.
\n\u201cKey observations include: i) the bigger developers, except CapitaLand, were bidding for the Irwell Bank site despite a number of CCR projects expected to be launched this year, ii) the smaller developers and Chinese developers bid for the Jalan Bunga Rampai, Bartley site which most likely would target the local mass-market suburban segment,\u201d she added.
\nThe next GLS tender is seen to end on 3 March 2020 with three OCR sites that include an EC site. These will be two sites located at Canberra and one site at EC site at Fernvale Lane, Sengkang.
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\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\u2019 cautious GLS bid causes 8-20% drop in land prices<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The muted sales take-up rates seen in existing projects in the vicinity of both sites...<\/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-114103","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-tGn","jetpack-related-posts":[{"id":113517,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/bids-for-jalan-bunga-rampai-and-irwell-bank-rd-gls-sites-lower-than-expected\/","url_meta":{"origin":114103,"position":0},"title":"Bids for Jalan Bunga Rampai and Irwell Bank Rd GLS sites lower than expected","date":"January 10, 2020","format":false,"excerpt":"\r Developers \u201ccontinue to adopt a more prudent approach to land bids, amid market uncertainties, ample upcoming supply, and the cooling measures which remain in place\u201d, said Tricia Song, head of research for Singapore at Colliers International. Photo: URA The Urban Redevelopment Authority (URA) has announced the closings tenders for\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":86625,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cuscaden-road-site-sets-new-gls-record-of-2377-psf-ppr\/","url_meta":{"origin":114103,"position":1},"title":"Cuscaden Road site sets new GLS record of $2,377 psf ppr","date":"April 27, 2018","format":false,"excerpt":"\r Location map of the Cuscaden Road site. (Photo: URA) The tender exercises for three residential sites closed on Wednesday (26 Apr) with relatively bullish bidding from developers, with the top bid for the Cuscaden Road site setting a new benchmark for a 99-year leasehold site. At nearly $410 million,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":122275,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/el-development-and-gao-xiu-hua-submit-top-bids-for-slim-barracks-rise-gls-sites\/","url_meta":{"origin":114103,"position":2},"title":"El Development and Gao Xiu Hua submit top bids for Slim Barracks Rise GLS sites","date":"September 29, 2021","format":false,"excerpt":"\r El Development and Gao Xiu Hua submit top bids for Slim Barracks Rise GLS sitesTwo residential sites at Slim Barracks Rise received robust interest during the close of their tender, with each site attracting 10 bids, revealed the Urban Redevelopment Authority (URA) on Tuesday (28 September). The tender for\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/09\/slim-barracks-parcel-a.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":122149,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/marina-view-white-site-attracts-one-bid\/","url_meta":{"origin":114103,"position":3},"title":"Marina View white site attracts one bid","date":"September 22, 2021","format":false,"excerpt":"\r Analysts attributed the lacklustre interest to the high price of the land and uncertainties over the CBD office and hotel sectors.\u00a0 The tender for the white site at Marina View closed on Tuesday (21 September), with Boulevard View emerging as the sole bidder for the 99-year leasehold site. In\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/09\/URA-launches-tender-for-the-White-site-at-Marina-View.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":104527,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/development-charges-for-non-landed-homes-fell-5-5\/","url_meta":{"origin":114103,"position":4},"title":"Development charges for non-landed homes fell 5.5%","date":"March 1, 2019","format":false,"excerpt":"\r The decline in DC rates comes as no surprise following the implementation of new property curbs in July. The development charge (DC) rates for non-landed residential properties fell by 5.5 percent on average, following a slowdown in residential land activity. The drop in DC rates for non-landed homes was\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":114700,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ura-closes-tender-for-canberra-drive-and-fernvale-lane-sites\/","url_meta":{"origin":114103,"position":5},"title":"URA closes tender for Canberra Drive and Fernvale Lane sites","date":"March 4, 2020","format":false,"excerpt":"\r Parcels A and B received five and four bids respectively, while the EC site at Ferndale Lane was hotly-contested, with seven bids. The tender for two private residential sites in Canberra Drive (Parcels A and B) and an executive condominium (EC) site in Fernvale Lane closed on Tuesday (3\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\/114103"}],"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=114103"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/114103\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=114103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=114103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=114103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}