Property Prices In Singapore Won't Fall! Diu Leh Lo Mo Lah!

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An honorable member of the Coffee Shop Has Just Posted the Following:

Quote:
A land parcel for mixed commercial and residential use in Yishun along Yishun Avenue 4 was put up for sale and received bids as high as $185.09 million for the land which has a 99 year lease.

The Housing Development Board (HDB) explained that the 9,759.8sqare metre land had received 5 bids in total with the highest bid coming from Northern Resi Pte Ltd and Northern Retail Pte Ltd.

HDB has yet to decide who to award the tender to as it still needs to evaluate the bids carefully.

This is the first government land sale exercise of 2015 and totals a cost of about $629 per square foot per plot ratio.

Property analysts Colliers explained that the bids were within expectation especially as Singapore continues to face a “lukewarm” property market.

At this land cost, the companies who bought the land would probably need to sell the land at about $950 to $1000 per square foot, explained Colliers.

For the retail, commercial areas, the gross monthly rents are likely to range from $6 to $12 per square foot depending on the size and type of business the shop spaces are leased to.

If colliers’ predictions are true, the residential areas sold in the latest land sale are not going to be cheap if almost $1000 per square foot is the break-even price.

Do you think you will see affordable properties being built on this land when the bids are so high?

http://therealsingapore.com/content/...-99-year-lease

Developers are still willing to pay top dollar to develop property in Singapore! More good years to come!


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