Uncertain times in Singapore’s property markets
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SINCE the government announced its intention to pilot a new category of rental housing, two sites incorporating “long-stay” serviced apartments have been put up for sale. Developers have been, shall we say, less than enthusiastic.
The first tender, for a piece of land in a prime residential enclave close to Orchard Road, drew one bid. The second tender, for a site in a suburban-ish location, saw no interest at all.
The serviced apartment component, designed to address a perceived need for “interim” rental housing, offers an element of recurring income for developers. But in this economy, with new home sales slowing to a crawl, financing costs still high, and fresh supply of state land sites yet to be released in coming months, it’s not hard to see why developers chose to stay away.
