Results 1 to 7 of 7

Thread: 2 strange developments in the ppty mkt

  1. #1
    Join Date
    Mar 2012
    Posts
    4,990

    Default 2 strange developments in the ppty mkt

    2 strange developments in the property market

    One is that it now takes developers launching projects within 6-7 months of securing the site.

    Here'sfrom Macquarie:

    There are more new players in the Singapore residential market, particularly in the tender of land sites sold by the government. Apart from the listed developers, over the past 2-3 years, there were more unlisted groups and small-cap listed companies in other trade sectors which
    ventured into property development. Some of these groups either tender alone or in JVs with a few other groups.

    Apart from a larger number of players, one clear trend is the faster asset turnover from the sites secured by the highest bidders. In the past, it typically took a developer 12-15 months before a project is launched for sale. Currently, it is not unusual to see developers launching
    projects within 6-7 months of securing the site.

    Since 2010, the listed developers under our coverage have lost market share to the smaller listed groups and unlisted players mentioned above. The combined market share was closer to 23% in 2011 and has fallen to 15% in 2012 YTD.

    The Singapore land bank of the developers averages only 3.6 years. This means that the developers need to replenish their land bank, especially from the GLS programme. Here, competition is very keen, which will impact margins if the bid price for the land site is too
    aggressive.

  2. #2
    Join Date
    Apr 2010
    Posts
    2,067

    Default

    Not strange, but people learn from lessons.

    When money opportunity present itself, chiong!

    When cycle time become shorter and shorter, quickly market the product.

    Learn and adapt and learn...

  3. #3
    Join Date
    Jun 2010
    Posts
    1,140

    Default

    Question is....

    Buy from the established players or from the small unknown unlisted players?

    Seems like people don't care these days.... until poo hits the fan....

  4. #4
    Join Date
    Jul 2009
    Posts
    7,482

    Default

    faster turnaround from bid to sale is good for their capital efficiency.

  5. #5
    Join Date
    Jul 2012
    Posts
    1,070

    Default

    Is it risky for the buyer to buy from the new player ?
    "Anyone who has not made a mistake has never tried anything new"

  6. #6
    Join Date
    Mar 2012
    Posts
    4,990

    Default

    will only buy from dev with at least 3 similar type projs completed in their portfolio

  7. #7
    Join Date
    Jun 2009
    Posts
    2,309

    Default

    I think the fast turnaround is call efficiency.

    The new comers have to prove their reliability.
    They have to constant prove that they are not just hit and run.

    Do you know some developers are still helping out with rectifications works 3-5 years after TOP and have a whole team of technicians/experts to assist.

    If you buy from new developers (esp those few individuals who team up to buy land then contract a main con to build), you have to seriously think about what happens if 2 years after TOP your condo need help with some structural issues.

    DKSG

Similar Threads

  1. Getting 2nd ppty
    By Joffrey in forum Singapore Private Condominium Property Discussion and News
    Replies: 3
    -: 19-05-18, 19:57
  2. Sic yr ppty portfolio!
    By mermaid in forum Singapore Private Condominium Property Discussion and News
    Replies: 91
    -: 12-08-13, 12:29
  3. Reasons for ppty market to come down
    By Lemonlaw in forum Singapore Private Condominium Property Discussion and News
    Replies: 90
    -: 09-02-13, 04:48
  4. Rally: Any sis own two ppty single under 35
    By carbuncle in forum Coffeeshop Talk
    Replies: 29
    -: 25-05-12, 14:26
  5. Enquiry on ppty tnx records
    By hovivi in forum HDB, EC, commercial and industrial property discussion
    Replies: 6
    -: 28-04-12, 17:45

Posting Permissions

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