Developers shun residential sites despite reduced DC rates

The price expectations gap is widening.

Developers are shying away from land sales of residential sales in spite of reduced Development Charge (DC) rate for non-landed residential projects, a reprot by Colliers stated.

"Demand for private sector residential land, including collective sales sites, is expected to stay muted...as the gap in price expectations between developers and the collective sellers remains unbridged,” noted Colliers.

However, the report also added that strategically located sites that are near the Mass Rapid Transit (MRT) stations will still attract interest from developers.

These sites will particularly appeal to developers who are looking to build up their land banks via opportunistic purchases, but bid prices are expected to remain moderate.

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