Property developers in Singapore expect land prices for private homes to continue to increase adding to other problems including increasing development costs and rising unsold units, Today Online reported.
Private homes in Singapore can no longer be called “mass market” developments and developers have no choice but to participate in the highly competitive land bids, Wong Heang Fine, the president of the Real Estate Developers’ Association of Singapore (REDAS), said.
Wong added that this causes a vicious cycle of rising land costs. REDAS will work with the government to keep land costs in check and he hopes it would keep the rise in property prices moderate.
“While we share the government’s intention to foster a stable and sustainable property market, these measures penalise the private sector which makes up only 20 percent of the housing market,” Wong said. “As a result, private developers who have consistently built quality homes to address the needs of buyers and investors who wish to make Singapore their home, are burdened with not only persistent high development costs and taxation, but are also under increasing strain from rising inventories.”
Sharp falls in property prices will have undesirable consequences on the value of existing homes, Wong said.
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