Singapore developers expect slump

Singaporean developers are acting more and more gingerly in how much money they are willing to invest in private home sites.

According to a research report, private home prices could be expected to decline a total of eight per cent this year.

Hence, developers have to factor the lowering of prices for their homes into their sums when deciding on a how much to put up on a purchasable plot.

The BNP Paribas released a research report that showed an estimated 100 government land sale bids between 2007 until last month.

The report showed that developers’ top priority is whether or not they are able to make profit, let alone “break even” before investing into a project.

Developers also said that they wanted to spend less on land plots, as they could no longer predict that the prevailing home prices would hold up by the time the project was sellable.

The report also illustrated how sites close to MRT stations and retail malls is harnessing enthusiasm amongst developers, as they are confident that these sites will continue to remain popular in choice even if the market slumps.



Filed Under: NewsNews by CountrySingapore

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