Are developers losing their appetite for land acquisition?
Since 2022, four residential sites have been withdrawn from government tender.
Four residential sites have been withdrawn from the government tender since 2022, exceeding the total of three sites in the past seven years (2015 - 2021), according to JLL’s Residential Market Monitor.
"Such reflects that the developers are losing their appetite for land acquisition," JLL said.
JLL expects this trend to continue as market sales failed to improve following relaxed cooling measures.
According to the expert, the average first-day sell-through rate of major projects launched in the two weeks following the Policy Address was 24.6% only, lower than the 73.9% rate from major project launches in 3Q23.
" If there is no significant improvement in the primary market, developers will continue to give the cold shoulder to the tender. The prevailing market conditions could pose challenges in achieving the long-term private housing land supply target," JLL said.