Analyst note that home buying sentiment in Singapore has weaken significantly such that developers are now becoming more choosy in selecting sites to bid for private condo development. A tender that closed yesterday was hotly contested by many developers because the site fits the criteria of being well located in a city fringe area.
Sources quote that there were in total of 16 bids received for the medium size plot of land for residential development. The winner for the plot of land came from SL Serangoon Geylang which places the highest bid for the plot of land. The gross floor area for the plot of land is 188,103sqft and this means the developer has bid for $776 psf ppr for the plot of land.
Geylang East Ave 1 Condo
Many feel that the plot of land fits almost all the criteria for a good residential development. It is situated at the city fringe with many good schools around in the area. Also, it is situated right beside Aljunied MRT Station which is one of the determinant factors in selecting a plot of land good for residential development.
As the market turn cautious on new developments, developers are more selective in choosing the plot of land. Therefore, the trend is apparent that less than ideal plots of land receive very few interest from the developers where else premium land gather a lot more bids previously in an effort by the developers to shore up their land banks.
Geylang City Fringe Condo
Geylang East Ave 1 plot of land remain a well positioned condo as it is near to the Geylang eateries as well as near Katong and Parkway Parade. The trend nowadays seem to be that well position sites that are priced reasonably continue to enjoy interest from many buyers looking for their ideal properties to invest.
Developers are more choosy nowadays as they are wary of fines imposed on them for failing to sell their units. New laws have been imposed on developers and they are imposed fines for not able to sell their units 2 years after TOP. The fines is equal to the market value of the properties that remain unsold.