Reply to Thread
Page 1 of 2 12 LastLast
Results 1 to 20 of 32

Thread: Smaller developers feel victimised. Who cares?

  1. #1
    Camper

    User Info Menu

    Default Smaller developers feel victimised. Who cares?

    Taken from CNA


    SINGAPORE : With demand for housing looking robust, property developers are now on the hunt for the best land sites money can buy.

    But small and medium-sized developers said they feel sidelined when it comes to bidding for government land plots.

    They said the larger property players have a much higher chance of winning the most attractive land parcels, because of their stronger bids.

    Medium-sized property developer Heeton Holdings is on a land acquisition spree.

    It has formed a consortium, called Residenza, with Kim Seng Heng Holdings and TEE International to buy land sites.

    Heeton said teaming up with other property players makes it easier for them to bid for quality plots.

    Danny Ong, chief operating officer of Heeton Holdings, said: "With this, we have synergy of exploiting each other's expertise and resources. And furthermore, we are three public-listed companies that have credentials in being able to...(borrow) from banks easily and with good and preferential rates."

    But with their financial muscle, big property players are currently dominating government tenders.

    For instance, a Bishan Street 14 land site, which is a short walk away from Bishan MRT Station, attracted a record 19 bids last month.

    CapitaLand submitted a S$550 million bid.

    Coming in second was Keppel Land Realty, with a bid of S$432.3 million.

    But the minimum bid required for the tender was only S$189.8 million.

    While the smaller developers lag behind, analysts said competition for public land is about to further heat up.

    Colin Tan, head of research and consultancy at Chesterton Suntec International, said: "With the cooling measures and all that, I think developers are getting a bit anxious. Developers are turning around their projects in as short as five months, which means that competition for sites will intensify, because these developers, having turned their projects, will now re-enter the market."

    Because of the stiff competition for public land, Heeton said most of its projects are redeveloped from smaller private land sales.

    Residenza bought two enbloc sites last week. They are Macpherson Green, which was bought with Zap Piling for S$105 million, and Camay Court in Telok Kurau, which was bought for S$30.5 million.

    To diversify away from land-scarce Singapore, Heeton said it will venture further into China and Malaysia.

    - CNA/ms
    Yee ha! Did I tickle your funny bone?


  2. #2
    Camper

    User Info Menu

    Default

    Who cares about developers not having enough land because richer developers have money to outbid them?
    Yee ha! Did I tickle your funny bone?


  3. #3
    Junior

    User Info Menu

    Default

    these small guys are also the ones who do MM units ...

  4. #4
    Exalted

    User Info Menu

    Default

    Quote Originally Posted by august
    these small guys are also the ones who do MM units ...
    but lots of small sites r enbloced in 2010....tons of MM coming....

  5. #5
    Junior

    User Info Menu

    Default

    In the first place, every Tom Dick and Harry suddenly jump into the bandwagon and become property developers becos of easy money to be made. These Tom Dick and Harry decided to put aside their core businesses (e.g. budget hotels, sell biscuits, sell books like Popular etc) and become developer for easy money. Now that money is no longer that easy, they complain for what? They just do what they do best instead of building inferior buildings. These guys build the worst homes and only know how to build MM.

  6. #6
    Newbie

    User Info Menu

    Default

    Quote Originally Posted by Wild Falcon
    In the first place, every Tom Dick and Harry suddenly jump into the bandwagon and become property developers becos of easy money to be made. These Tom Dick and Harry decided to put aside their core businesses (e.g. budget hotels, sell biscuits, sell books like Popular etc) and become developer for easy money. Now that money is no longer that easy, they complain for what? They just do what they do best instead of building inferior buildings. These guys build the worst homes and only know how to build MM.
    Exactly. I have always maintained its not productive for any economy to be so obsessed with ppty and ppty speculation makes it seems easy money. This is akin to the discovery of black gold in some african countries and their inability to handle these easy riches.

    For some developers, its normal to have ppty since their initial core business (bookshops, wet markets) needs space. Instead of being tenants, owing their own shops or market space help these businesses manage their business costs. Otherwise, they are subjected to uncertain rental costs.

    However, with the potential of easy money from ppty development, the initial core business seems unattractive with low returns. The incentives to innovate their core business takes a back seat and eventually gives way totally to ppty development.

    I feel these small time developers, if they do fail, has only themselves to blame. I agree with ecimbew, `who cares?'

  7. #7
    Bricks & Mortar

    User Info Menu

    Default

    Launched 2-3projects in 1year much easier than selling books and pens...,Popular launched it's 3 property project at 8 Raja late last year...

  8. #8
    I sell Cheese Pie

    User Info Menu

    Default

    I already said many many times over and over and over again never to ever buy a MM unit

  9. #9
    Senior

    User Info Menu

    Default

    When push comes to shove, 2 bedders and 3 bedders owners offer the same rental as the 1 bedders, guess who's gonna get the tenant.

  10. #10
    Exalted

    User Info Menu

    Default

    Quote Originally Posted by kane
    When push comes to shove, 2 bedders and 3 bedders owners offer the same rental as the 1 bedders, guess who's gonna get the tenant.
    ????

    of coz all rental of various sizes drop together.....end of the chain rental supply is room rental....

    if condo 2 bedder drop to hdb 3rm price...who gona get the tenant? haha

  11. #11
    Exalted

    User Info Menu

    Default

    Quote Originally Posted by Geylang OKT
    I already said many many times over and over and over again never to ever buy a MM unit
    our mm king oredi flipped few times....cash in the pocket liao....wat can u say?

  12. #12
    Senior

    User Info Menu

    Default

    Quote Originally Posted by devilplate
    ????

    of coz all rental of various sizes drop together.....end of the chain rental supply is room rental....

    if condo 2 bedder drop to hdb 3rm price...who gona get the tenant? haha
    I personally don't think those new mm launches offer a large buffer margin for error. narrowing of rental spreads between big and small units is not in the favour for MM units.

  13. #13
    Senior

    User Info Menu

    Default

    Quote Originally Posted by devilplate
    our mm king oredi flipped few times....cash in the pocket liao....wat can u say?
    good for those who bought early. hopefully the music doesn't stop for the late entrants.

  14. #14
    Senior

    User Info Menu

    Default

    Quote Originally Posted by kane
    good for those who bought early. hopefully the music doesn't stop for the late entrants.
    It is precisely because the govt introduced so many property cooling measures that mm units become very attractive to small time investors (investors w/o endless cash flow). Consider 40% of a 500K mm unit = 200k vs 40% of a $1m 2/3 bedders = 400k. Furthermore, comparing between them, a 500K mm unit is more readily available as compared to a 1mil 2/3 bedders (almost extinct in most popular districts). As such, less $ and more availability in market definitely appeals to investors. Sigh! Go and sleep lah.

  15. #15
    Senior

    User Info Menu

    Default

    There is a possibility that large developers could form oligopoly in the property market. After getting control of market segment or location, they could have adverse impacts on the property sellers or buyers.

  16. #16
    Senior

    User Info Menu

    Default

    Quote Originally Posted by hyenergix
    There is a possibility that large developers could form oligopoly in the property market. After getting control of market segment or location, they could have adverse impacts on the property sellers or buyers.
    In my opinion, this is highly unlikely. First, govt is closely monitoring the situation to prevent any control of the property market by big developers. It'll be highly unhealthy to the market. Second, govt launching so many parcel of land that with the few big developers, they probably have to buy 2 or 3 lands each per year in order to control among themselves. Too much diversity for them in a year. They may not go for it. Third, in order to muscle around, these big developers will then have to bid convincingly above the smaller developers meaning they might not profit much and this again is not gonna work for them. Just my opinion....

  17. #17
    OCR properties going to crash!

    User Info Menu

    Default

    How about everybody aspired to be private bankers and work investment banking, invest here invest there and try to come out with misleading products to confuse people (e.g. structured deposits) that has no social and economic benefits to the economy and the society AND get paid so much money?

    Who want to do the sweat work that will benefits man-kind (e.g. in engineering and technology development) but get paid comparatively "peanuts" now?

    Quote Originally Posted by HP65
    Exactly. I have always maintained its not productive for any economy to be so obsessed with ppty and ppty speculation makes it seems easy money. This is akin to the discovery of black gold in some african countries and their inability to handle these easy riches.

    For some developers, its normal to have ppty since their initial core business (bookshops, wet markets) needs space. Instead of being tenants, owing their own shops or market space help these businesses manage their business costs. Otherwise, they are subjected to uncertain rental costs.

    However, with the potential of easy money from ppty development, the initial core business seems unattractive with low returns. The incentives to innovate their core business takes a back seat and eventually gives way totally to ppty development.

    I feel these small time developers, if they do fail, has only themselves to blame. I agree with ecimbew, `who cares?'

  18. #18
    Senior

    User Info Menu

    Default

    i think the authorities should take steps to limit the amount of 1 bedders and studios being built as this might become one more reason for young couples living in them to procrastinate having kids.

    and when our own birth rate falls, the pressure to rely more on foreigners grows.

    the smaller developers should learn to compete building proper 2 & 3 bedders as well rather than always taking the easy way out and building MM.

  19. #19
    I sell Cheese Pie

    User Info Menu

    Default

    Quote Originally Posted by devilplate
    our mm king oredi flipped few times....cash in the pocket liao....wat can u say?
    Unless we were born to be midgets or dwarfs, I would say a big NO to such units

  20. #20
    I sell Cheese Pie

    User Info Menu

    Default

    Quote Originally Posted by devilplate
    our mm king oredi flipped few times....cash in the pocket liao....wat can u say?
    The analogy would be the early birds in the scheme of things like the Sunshine Empire scam

Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts
  •