Smaller land parcels key in boosting developer participation

The government should simplify land sales conditions and divide sites into smaller parcels to attract more developers, JLL said.

In its 2025 Market Forecast, the firm recommended reducing supplementary requirements, such as provisions for Government, Institution, or Community facilities and extensive roadworks, which currently deter participation.

Exempting additional conditions, like ESG mandates or requiring portions of gross floor area to be returned to the government, could further encourage developer interest, JLL noted.

JLL also suggested breaking large land parcels into smaller plots to lower the initial investment required, making land acquisition more accessible.

Allowing staged payment of land premiums for large-scale sites could improve cash flow for developers and incentivize bids during a market downturn.

Revising the Urban Renewal Authority’s Home Purchase Allowance to base valuations on older flats could further reduce acquisition costs and enhance redevelopment profitability, ensuring continued progress in urban revitalization, JLL added.