{"id":76684,"date":"2018-01-15T11:09:07","date_gmt":"2018-01-15T04:09:07","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/overly-optimistic-bids-may-derail-property-market-rebound\/"},"modified":"2018-01-15T12:02:48","modified_gmt":"2018-01-15T05:02:48","slug":"overly-optimistic-bids-may-derail-property-market-rebound","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/overly-optimistic-bids-may-derail-property-market-rebound\/","title":{"rendered":"Overly optimistic bids may derail property market rebound"},"content":{"rendered":"


\nWhile the property market is expected to head for a rebound, analysts believe the optimism surrounding Singapore\u2019s property market may lead to market instability, reported Singapore Business Review.
\nThis comes as the intense competition for en bloc sites had pushed land prices higher.
\nRHB Research revealed that land bids are factoring in a 10 to 40 percent hike in prices assuming property developers achieve their usual profit margin of 10 to 15 percent.
\nIt noted that developers have to build, sell, and complete a project in five years or else they would have to contend with stiffer penalties in the form of additional buyer\u2019s stamp duty (ABSD), which is 15 percent of land cost plus interest expense.
\n\u201cWhilst we do expect prices to rise, we believe the bids are overly optimistic and could limit profit margins of developers despite the expected price increase,\u201d said RHB analyst Vijay Natarajan.
\nWith this, Credit Suisse said the government should continue to keep the property cooling measures on hand in the event the market overheats.
\nIn fact, both RHB and Credit Suisse expects the government to continue to monitor market developments and introduce additional measures if needed.
\n\u201cShould there be a significant increase in prices, especially if the current elevated vacancy rate of 8.4 percent persists, we believe there could be risks of a further tightening in property cooling measures,\u201d said Credit Suisse analyst Gerald Wong.
\nThe Monetary Authority of Singapore (MAS) has already warned that the development of Government Land Sales (GLS) and en bloc sites will raise the private housing stock of the next three to five years, and add to existing vacancies within the medium term should it not be matched by occupation demand.
\n\u00a0
\nThis article was edited by Keshia Faculin.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Overly optimistic bids may derail property market rebound<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

While the property market is expected to head for a rebound, analysts believe the optimism...<\/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-76684","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-jWQ","jetpack-related-posts":[{"id":28903,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/gls-bids-rise-amid-strong-demand\/","url_meta":{"origin":76684,"position":0},"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":70168,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mtr-seeks-bids-for-land-as-hong-kong-property-developers-ready-for-november-sales\/","url_meta":{"origin":76684,"position":1},"title":"MTR seeks bids for land as Hong Kong property developers ready for November sales","date":"October 27, 2017","format":false,"excerpt":"\r Hong Kong\u2019s subway operator MTR Corp will start a tendering process for a plot of land for residential development next to its Wong Chuk Hang station from Friday, while other property firms eye high prices from a series of sales set for November. MTR is inviting developers to submit\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":114103,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-cautious-gls-bid-causes-8-20-drop-in-land-prices\/","url_meta":{"origin":76684,"position":2},"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":103789,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/is-hong-kongs-housing-market-recovering-plot-of-land-in-tai-po-attracts-more-bids-than-expected\/","url_meta":{"origin":76684,"position":3},"title":"Is Hong Kong\u2019s housing market recovering? Plot of land in Tai Po attracts more bids than expected","date":"February 8, 2019","format":false,"excerpt":"\r A parcel of residential land for sale in Tai Po fetched more bids than anticipated in a possible sign that Hong Kong\u2019s developers are becoming more optimistic about the flagging market. The plot at Pak Shek Kok had received 10 bids when the tender closed at noon on Friday,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":51644,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/24-bids-received-for-toh-tuck-road-site\/","url_meta":{"origin":76684,"position":4},"title":"24 bids received for Toh Tuck Road site","date":"April 12, 2017","format":false,"excerpt":"\r The 99-year leasehold site in Upper Bukit Timah saw fierce bidding from developers looking to replenish their land banks. Image source: URA A 1.87ha residential site at Toh Tuck Road in Upper Bukit Timah attracted overwhelming interest from property developers, with a total of 24 bids submitted after the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2017\/04\/Aerial-view-of-the-site-at-Toh-Tuck-Road.jpg?fit=797%2C299&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":103074,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/scenic-site-at-kai-tak-draws-fewer-than-expected-bids-from-property-developers\/","url_meta":{"origin":76684,"position":5},"title":"Scenic site at Kai Tak draws fewer than expected bids from property developers","date":"January 18, 2019","format":false,"excerpt":"\r The fourth residential plot at the city\u2019s former Kai Tak airport, regarded as the most scenic, has missed analyst expectations, as slightly fewer than expected developers submitted tenders on Friday, reflecting downbeat sentiment as home prices come under further pressure. The 117,900 square foot plot, located on land jutting\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\/76684"}],"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=76684"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/76684\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=76684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=76684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=76684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}