Developer fatigue becoming more obvious

Recent mass market tenders receive only 5-6 bids.

According to UOB Kay Hian, bidding in recent government land tenders shows that developers still remain cautiously optimistic on sites near MRT stations/better amenities with bids that are in line with or above
market expectations. However, signs of developer fatigue are visible in some of the recent mass market sites with recent tenders receiving a lukewarm response (five -six bids each), although bidding levels have remained in line with market expectations.

"The bids are reflective of developers’ view that demand and prices for sites with better amenities and connectivity are unlikely to correct sharply in the near to mid term," it said.