mr funny
12-06-11, 15:35
http://www.businesstimes.com.sg/sub/companies/story/0,4574,442849-1307822340,00.html?
Published June 11, 2011
Sim Lian warns of construction cost rise
By TEO SI JIA
SIM Lian Group Limited, which has its roots in construction before venturing into property development, voiced its concern that construction costs may swell with the recent move to speed up the pace of public housing supply.
The temporary policy, rolled out recently, calls for the building of HDB flats ahead of order. It seeks to clear the demand backlog and to help young couples get their flats faster.
HDB will pick up the construction pace, with plans to deliver 25,000 units this year, from a previously planned 22,000 units.
According to Sim Lian, the stepping up of the public housing construction pace may drive up construction costs, affecting companies' profit margins.
Sim Lian Group executive director Kuik Sing Beng expects a polarity in demand for public housing in mature and non-mature estates. While he sees an adequate housing supply to meet demand in the mature estates, 'demand for public housing in non-mature estates will diminish'.
The group, which branched into property development in 2001, and was the first private developer to clinch the pilot Design, Build and Sell Scheme, has also expressed plans to devote more resources to private housing. This despite a higher need for caution, as warned by SIAS Research's investment analyst Liu Jinshu.
'Private developers may face the challenge of timing their project launches and land acquisitions when volatility rises. The higher volatility also translates to a riskier environment for property speculators,' he said of the housing situation.
Mr Liu also said that while the additional flats in the works will slow down the rise in housing prices, 'future demand has to be forecast when attempting to build ahead'.
Published June 11, 2011
Sim Lian warns of construction cost rise
By TEO SI JIA
SIM Lian Group Limited, which has its roots in construction before venturing into property development, voiced its concern that construction costs may swell with the recent move to speed up the pace of public housing supply.
The temporary policy, rolled out recently, calls for the building of HDB flats ahead of order. It seeks to clear the demand backlog and to help young couples get their flats faster.
HDB will pick up the construction pace, with plans to deliver 25,000 units this year, from a previously planned 22,000 units.
According to Sim Lian, the stepping up of the public housing construction pace may drive up construction costs, affecting companies' profit margins.
Sim Lian Group executive director Kuik Sing Beng expects a polarity in demand for public housing in mature and non-mature estates. While he sees an adequate housing supply to meet demand in the mature estates, 'demand for public housing in non-mature estates will diminish'.
The group, which branched into property development in 2001, and was the first private developer to clinch the pilot Design, Build and Sell Scheme, has also expressed plans to devote more resources to private housing. This despite a higher need for caution, as warned by SIAS Research's investment analyst Liu Jinshu.
'Private developers may face the challenge of timing their project launches and land acquisitions when volatility rises. The higher volatility also translates to a riskier environment for property speculators,' he said of the housing situation.
Mr Liu also said that while the additional flats in the works will slow down the rise in housing prices, 'future demand has to be forecast when attempting to build ahead'.