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Intense bidding for GLS sites to continue, analysts expect bigger supply in H2

Study finds number of bidders and average price premium over comparable sites higher in H1 2017 than, say, H2 2015

Published Tue, May 16, 2017 · 09:50 PM

Singapore

DEVELOPERS' hunger for land has clearly translated into more intense bidding for sites sold under the Government Land Sales (GLS) programme, with more throwing their hat in the ring and the winning bidders footing price premiums that are higher than those for comparable sites sold earlier.

Research by Cushman & Wakefield on predominantly residential GLS sites found that the average number of bidders in the first half of this year was 13.3, up from, for example, H2 2015, when it was 8.25.

(A comparison with H1 2016 was not made because there were no clear comparables in that period for sites sold.)

The average price premium of sites sold in H1 2017 over the latest comparable sites sold in the preceding…