Question of GLS minimum bid

[kiasuest]

Hi folks,

I was talking to an agent about a mass mkt condo that is launching soon.

As usual, agents will boost about how good the response was and the 'Singapore is land scarce' argument to attract buyers.

Then came her claim on GLS min. bid when I mentioned there was an adjacent plot of land beside the new launch. This plot of land is currently on GLS reserve list.

Her claim was that developers will have to offer at least the sale price of the land of the new launch for this reserve site before Govt open it for tender. Is this true?
E.g.
Plot A was sold for $300M and is launching soon
Plot B is just beside Plot A and on GLS reserve list.
Developers have to indicate a minimum bid of $320M before Govt open it for tender? (assuming the size of land is the same)

The agent was trying to convince me that when Plot B was sold and launch, the price will definitely be even higher. So it is better to buy the new launch from Plot A now.

[Rosy]

Hi folks,

I was talking to an agent about a mass mkt condo that is launching soon.

As usual, agents will boost about how good the response was and the 'Singapore is land scarce' argument to attract buyers.

Then came her claim on GLS min. bid when I mentioned there was an adjacent plot of land beside the new launch. This plot of land is currently on GLS reserve list.

Her claim was that developers will have to offer at least the sale price of the land of the new launch for this reserve site before Govt open it for tender. Is this true?
E.g.
Plot A was sold for $300M and is launching soon
Plot B is just beside Plot A and on GLS reserve list.
Developers have to indicate a minimum bid of $320M before Govt open it for tender? (assuming the size of land is the same)

The agent was trying to convince me that when Plot B was sold and launch, the price will definitely be even higher. So it is better to buy the new launch from Plot A now.

do not bother too much on the future launch prices. growth story is a 'story' and perception. no risk no gain:2cents:

u should make a comparison on nearby existing resale prices instead:2cents:

[scsc]

Hi folks,

I was talking to an agent about a mass mkt condo that is launching soon.

As usual, agents will boost about how good the response was and the 'Singapore is land scarce' argument to attract buyers.

Then came her claim on GLS min. bid when I mentioned there was an adjacent plot of land beside the new launch. This plot of land is currently on GLS reserve list.

Her claim was that developers will have to offer at least the sale price of the land of the new launch for this reserve site before Govt open it for tender. Is this true?
E.g.
Plot A was sold for $300M and is launching soon
Plot B is just beside Plot A and on GLS reserve list.
Developers have to indicate a minimum bid of $320M before Govt open it for tender? (assuming the size of land is the same)

The agent was trying to convince me that when Plot B was sold and launch, the price will definitely be even higher. So it is better to buy the new launch from Plot A now.

In a bullish market (such as 2007 & 2010), typically new sites are bid feverishly hence higher sale price compared to older sites.

But in a depressed market (such as 2008), u will be surprised that there are not many bidders & hence lower and conservative bids. Of course the bid price must be higher than the valuer's reserve price in order to clinch the deal.

Hope it helps :)

[Jadey]

In a bullish market (such as 2007 & 2010), typically new sites are bid feverishly hence higher sale price compared to older sites.

But in a depressed market (such as 2008), u will be surprised that there are not many bidders & hence lower and conservative bids. Of course the bid price must be higher than the valuer's reserve price in order to clinch the deal.

Hope it helps :)

big developers will replenish their land bank during depressing times.

[august]

Hi folks,

I was talking to an agent about a mass mkt condo that is launching soon.

As usual, agents will boost about how good the response was and the 'Singapore is land scarce' argument to attract buyers.

Then came her claim on GLS min. bid when I mentioned there was an adjacent plot of land beside the new launch. This plot of land is currently on GLS reserve list.

Her claim was that developers will have to offer at least the sale price of the land of the new launch for this reserve site before Govt open it for tender. Is this true?
E.g.
Plot A was sold for $300M and is launching soon
Plot B is just beside Plot A and on GLS reserve list.
Developers have to indicate a minimum bid of $320M before Govt open it for tender? (assuming the size of land is the same)

The agent was trying to convince me that when Plot B was sold and launch, the price will definitely be even higher. So it is better to buy the new launch from Plot A now.

hahaha complete rubbish from the agent

plot A sold at $300M does not mean minimum bid of Plot B will be minimum of $300M. in fact the minimum bid of Plot A itself is lower than $300M.

sold price is not the minimum bid price.

[august]

big developers will replenish their land bank during depressing times.

govt may not release land for sale during depressed times as evidenced during 08-09 period.

developers could however turn to private mkt such as enbloc.

[land118]

hahaha complete rubbish from the agent

plot A sold at $300M does not mean minimum bid of Plot B will be minimum of $300M. in fact the minimum bid of Plot A itself is lower than $300M.

sold price is not the minimum bid price.Ya, true. This type of agent better dun engage, yaya papaya type..., if you ask him show evidence, he can't produce, talk cock sing song, hear from others and loud hailer type..., better change agent...:doh:

[propertyinvestor]

Hi folks,

I was talking to an agent about a mass mkt condo that is launching soon.

As usual, agents will boost about how good the response was and the 'Singapore is land scarce' argument to attract buyers.

Then came her claim on GLS min. bid when I mentioned there was an adjacent plot of land beside the new launch. This plot of land is currently on GLS reserve list.

Her claim was that developers will have to offer at least the sale price of the land of the new launch for this reserve site before Govt open it for tender. Is this true?
E.g.
Plot A was sold for $300M and is launching soon
Plot B is just beside Plot A and on GLS reserve list.
Developers have to indicate a minimum bid of $320M before Govt open it for tender? (assuming the size of land is the same)

The agent was trying to convince me that when Plot B was sold and launch, the price will definitely be even higher. So it is better to buy the new launch from Plot A now.

To what I know, when a developer shows interest in a GLS plot, they offer their price, if the price is above the minimum reserve price set by the gov, they will open for bidding. If below, offer will be rejected. That is why price is controlled by gov who set the minimum reserve price which is also driven by the market.

[kiasuest]

To what I know, when a developer shows interest in a GLS plot, they offer their price, if the price is above the minimum reserve price set by the gov, they will open for bidding. If below, offer will be rejected. That is why price is controlled by gov who set the minimum reserve price which is also driven by the market.

Exactly what i meant.

How does the govt set this 'minimum reserve price'. Is it derived from the most recent sale of the surrounding location? If so, then what the agent said
should be true?

[thomastansb]

URA will have the minimum trigger price.



Exactly what i meant.

How does the govt set this 'minimum reserve price'. Is it derived from the most recent sale of the surrounding location? If so, then what the agent said
should be true?

[hyenergix]

Exactly what i meant.

How does the govt set this 'minimum reserve price'. Is it derived from the most recent sale of the surrounding location? If so, then what the agent said
should be true?

If I were e land valuer I would take e highest price of recently sold land within 5 km, add a premium
to its potential, then give a token discount to entice developers. How can e govt sell land below market price? It is not in need of $ desperately. Doing so would b raiding our reserves.

[ecimbew]

Example
http://www.ura.gov.sg/pr/text/2011/pr11-09.html

18 January 2011

URA launches tender for the residential site at Bedok Reservoir Road and accepts an application for sale of residential site at Bartley Road / Lorong How Sun

The Urban Redevelopment Authority (URA) has launched the residential site at Bedok Reservoir Road and accepted an application from a developer to put up the residential site at Bartley Road / Lorong How Sun for sale via public tender.

The two residential sites can in total potentially yield about 1,260 housing units and will offer home-buyers with more housing choices.

[propertyinvestor]

Exactly what i meant.

How does the govt set this 'minimum reserve price'. Is it derived from the most recent sale of the surrounding location? If so, then what the agent said
should be true?

Of course to determine the minimum reserve price, gov has to check around the surrounding price which is also the market price. Because if anyhow lower the reserve price, it will badly affect our national reserve.