Subdued bidding for housing sites will persist if sales at new condo launches are tepid

Developers have generally been cautious in bidding for housing sites thus far this year. Interest in residential en bloc sites is low and bidding at state land tenders of housing sites is subdued.

The four bids for an executive condominium (EC) plot in Jalan Loyang Besar in Pasir Ris at the tender that closed on Aug 1 were far fewer than in other EC land tenders. The tender for a private housing site at Margaret Drive in the Queenstown area, which is popular with homebuyers, that closed at the same time drew two bids and a top bid that was at the lower end of analysts’ expectations. 

While housing developers face higher financing and construction costs, perhaps what really bugs developers is uncertain sales take-up.