As the reopening of the economy picks up pace, property developers have started to look for land for development. And land in Singapore is getting more interest from Malaysian property players.
Just last week, IOI Properties Group Bhd, the sole bidder, won a tender for a piece of leasehold land, measuring 7,817 sq m, at Marina View in Singapore for S$1.5 billion (RM4.68 billion). Analysts are positive about its new residential project on the back of the pent-up demand in the area.
This came after Sunway Bhd, through its joint-venture vehicle with Singapore developer Hoi Hup Realty, won a competitive bid, at S$371 million, for the en bloc acquisition of Flynn Park in Singapore in early September. The plan is to redevelop the site into modern, private residential condominiums.
Data from Singapore’s Urban Redevelopment Authority shows that sales of new private homes in the city state hit a high of 1,591 units in July — the highest in six months — before retreating to 1,215
units in August. Despite that, it is still higher than the five-year average of 900 units.
The recent sellout of IOI Properties’ 190 units at South Beach Residences, near the Central district, underscores investors’ confidence in Singapore’s property market, especially in the prime business and financial district.
In the current challenging business environment, it makes sense for developers to shift their focus to big cities, which have more potential as the buyers of high-end products are less affected by the Covid-19 fallout. The diversification will also help maintain or expand their revenue stream amid the struggling local property market.
In contrast, Singapore-listed Hatten Land Ltd sold its 3.781ha tract in Melaka two months ago for RM25.8 million. The land was originally slated to be developed into an integrated mixed development with a mall, hotel block and serviced apartment block.