There is also strong competition from Government Land Sales (GLS), which some developers prefer as they can be more straightforward, said Mr Terence Lian, Hutton’s head of investment sales.
“Whereas for en bloc sites, you’re facing regulatory requirements. Usually, developers will give owners another six-month rent-free period before they can demolish the development. So, there’s (also) a holding cost,” he noted.
“That said, if a site has the right, realistic pricing, you’ll still be able to find a buyer to acquire the site.”
KEEPING LAND USE EFFICIENT
Provost Chair Professor Sing Tien Foo at the National University of Singapore (NUS) Business School’s real estate department said the review is timely to ensure land in Singapore remains efficiently used, especially in prime areas.
