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Thread: Developers should target lower profit margins

  1. #1
    Join Date
    Oct 2011
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    10,770

    Default Developers should target lower profit margins

    Developers should target lower profit margins

    Mar 20, 2019


    The Government should stand firm on the property cooling measures that were introduced last July (PropNex calls for easing of curbs for HDB upgraders, March 15).

    These measures, which serve to keep housing prices in line with economic fundamentals, restrain increases in cost of living and improve the quality of life, are positive and well supported by Singaporeans.

    The recent collective-sale frenzy has not been beneficial for Singapore.

    Developments like The Gazania and Treasures at Tampines have more than tripled the number of units built on the same plot of land.

    At the same time, a large majority of these units are smaller than a Housing Board four-room flat, and are being offered at very high per-square-foot prices.

    This lowers the quality of life for Singaporeans as it forces people into increasingly smaller, less liveable apartments at higher prices.

    While developers claim these high prices are due to the high land prices they paid, the reality is that they are still aiming for double-digit profit margins.

    If PropNex truly cared about upgraders, it should call for developers to target lower profit margins and pay normal commissions to property agents, passing on the savings to consumers, instead of asking for cooling measures to be relaxed.

    The constant requests by industry players to relax the cooling measures reinforce only the self-serving image of the industry in the eyes of the public.

    Jeremy Teo Chin Ghee (Dr)

  2. #2
    Join Date
    Mar 2019
    Posts
    4

    Default Re: Developers should target lower profit margins

    Quote Originally Posted by reporter2 View Post
    Developers should target lower profit margins

    Mar 20, 2019


    The Government should stand firm on the property cooling measures that were introduced last July (PropNex calls for easing of curbs for HDB upgraders, March 15).

    These measures, which serve to keep housing prices in line with economic fundamentals, restrain increases in cost of living and improve the quality of life, are positive and well supported by Singaporeans.

    The recent collective-sale frenzy has not been beneficial for Singapore.

    Developments like The Gazania and Treasures at Tampines have more than tripled the number of units built on the same plot of land.

    At the same time, a large majority of these units are smaller than a Housing Board four-room flat, and are being offered at very high per-square-foot prices.

    This lowers the quality of life for Singaporeans as it forces people into increasingly smaller, less liveable apartments at higher prices.

    While developers claim these high prices are due to the high land prices they paid, the reality is that they are still aiming for double-digit profit margins.

    If PropNex truly cared about upgraders, it should call for developers to target lower profit margins and pay normal commissions to property agents, passing on the savings to consumers, instead of asking for cooling measures to be relaxed.

    The constant requests by industry players to relax the cooling measures reinforce only the self-serving image of the industry in the eyes of the public.

    Jeremy Teo Chin Ghee (Dr)
    How LOW is lower profit margins? Guess different strokes for different folks? Meaning Small Cap Developer can stomach lower profit margins compared to Large Cap Developers OR the reverse is TRUE?

    Share prices of Large Cap Developers as well as Small Cap Developers have not moved much this past year except for the reaction to 8-July news.

  3. #3
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,471

    Default Re: Developers should target lower profit margins

    While developers claim these high prices are due to the high land prices they paid, the reality is that they are still aiming for double-digit profit margins.

    If PropNex truly cared about upgraders, it should call for developers to target lower profit margins and pay normal commissions to property agents, passing on the savings to consumers, instead of asking for cooling measures to be relaxed.

    The constant requests by industry players to relax the cooling measures reinforce only the self-serving image of the industry in the eyes of the public.

    Jeremy Teo Chin Ghee (Dr)

    Supply and Demand

    Would lower profit margins, normal commissions to property agents reduce the cost of the property.

    Why not ask the government don't spend on the infrastructure, security, education, health so the cost of living will be cheaper, life expectancy will be lower.

    It would be even better just like The Parable Of The Mexican Fisherman And Investment Banker.

    Or maybe get fewer people to be Dr since spending on education will increase the cost of education.

    Ph.D. - Permanent Head Damage when one study too much.

    https://www.airport-technology.com/n...airports-2035/

    https://www.youtube.com/watch?v=Jo_kJtI-Ito

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