URA move to cap shoebox units: Analysts say ongoing collective sales attempts will be hit hard

Analysts concur that the new rules, coupled with hefty additional buyer's stamp duties charges, will likely result in developers' submitting less aggressive bids for future land tenders.
Analysts concur that the new rules, coupled with hefty additional buyer's stamp duties charges, will likely result in developers' submitting less aggressive bids for future land tenders.ST PHOTO: KUA CHEE SIONG

The new average unit size benchmarks for private non-landed property announced on Wednesday may be the "final nail in the coffin" for collective sale sites that have yet to find buyers, or those that have yet to secure the 80 per cent mandate to launch for public tender, analysts say.

Unless developers have already bought land and obtained planning approvals, Wednesday's more stringent guidelines requiring them to build fewer and bigger units will likely eat into developers' profit margins, International Property Advisor chief executive Ku Swee Yong said.

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A version of this article appeared in the print edition of The Straits Times on October 19, 2018, with the headline 'Analysts say ongoing collective sales attempts will be hit hard'. Subscribe