Developers' margins squeezed by higher land, construction costs: survey

Singapore

THE pains of margin compression for property developers in Singapore look set to continue, given recent tightened border measures due to the surge of Covid-19 cases in India.

It comes as profit margins of developers had already thinned from the year-ago period, despite developers seeing strong private-home sales, according to a survey.

An increase in construction costs, land costs and agent commissions were among the reasons cited for these thinning margins.

For its Q1 2021 survey, the National University of Singapore Real Estate (NUS+RE) polled 49 senior executives in Singapore's real estate sector, with 24 developers among them. NUS+RE c…

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