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Thread: Smaller developers feel victimised. Who cares?

  1. #1
    Camper

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    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

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    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

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

  4. #4
    Exalted

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    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

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    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

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    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

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    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

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

  9. #9
    Senior

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    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

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    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

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