Prospects for profitability

A CONTINUAL supply of land is crucial to the revenue stream of housing developers. Yet from recent activity - or the lack of it - in the land sales market, developers seem to be holding back. Collective sale offers came and went with no takers. The latest government land sale tender drew only one bid. The demand picture from homebuyers has turned unclear, while higher interest rates crimp both the buying power of households and also hurt developers with large project loans.

Against a background of uncertainty, Leslie Yee examines why developers that continue to replenish their land banks have an advantage over rivals in hibernation, in The Level Ground.  

GuocoLand is one that has been speedily filling its land bank. It has bagged three state land sites (two with partners in the Hong Leong group) in the Lentor Hills area in under two years. Its first launch in the area got off to a positive start, with about 530 units sold to date at an average of S$2,103 per square foot (psf) since the project was first marketed seven months ago.