Sticky land prices imply new launch prices remaining on firm uptrend – Singapore Property
- Modest turnout at 3 state tenders from developers; 1,800+ units to be added to supply pipeline
- Most suburban site bids at land prices of S$1,250-1,350 psf; launch prices to stay above the S$2,200 psf range
- Frasers Property bagged first win in a while, partnering with CDL and Sekisui House to stake close to S$1 billion for a plum Toa Payoh site
- Overall, property prices remain firm despite a moderating economic outlook
The close of three sites in the latest government land sales (“GLS”) tenders at Clementi Avenue 1, Toa Payoh, and Pine Grove (Parcel B) saw modest turnouts of developers. While a cloudy economic outlook could still affect buyer sentiment, we saw developers taking more interest at the Clementi Avenue 1 site (six bidders) compared to the three developers each at the other two sites.
Pricing for the top bidders have stayed relatively firm at close to c.S$1,300 psf ppr, implying that developers still expect to be able to clear units at the S$2,200-2,300 psf range, and that average quantum for private property homes of at least 85sqm (c.915sqft) will be priced close to S$2.0m. In total, these sites will add close to 1,840 units to the supply when launched sometime late 2024/early 2025.