Redas chief on land supply and home prices - Govt should act earlier

[MarrickG]

THE Government has to shoulder some of the blame for the short supply of land and high property prices, said Mr Simon Cheong, president of the Real Estate Developers' Association of Singapore (Redas), yesterday.

Mr Cheong told the audience at the launch of a new property price index that land values are largely determined by the Government's reserve price system that features in all state land tenders. Yet a site's reserve price is not revealed.

'During periods of high volatility, it is not able to respond quickly enough to real-time changes happening in the marketplace,' he said.

Mr Cheong, who is also chairman and chief executive of developer SC Global, picked out two recent government land tenders to illustrate the 'conundrum and the dilemma' developers face in bidding for such sites.

A single bid for a Tampines site was rejected in June 2008 for being too low but was awarded in March at $421 per sq ft per plot ratio (psf ppr), or 3.6 times higher.

A Ten Mile Junction mixed-use site also had a failed bid of $162 psf ppr in April 2008 but went for $437 psf ppr, or 2.7 times higher, in February.

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_506359.html

 

[ahleebabasingaporethief]

THE Government has to shoulder some of the blame for the short supply of land and high property prices, said Mr Simon Cheong, president of the Real Estate Developers' Association of Singapore (Redas), yesterday.

Mr Cheong told the audience at the launch of a new property price index that land values are largely determined by the Government's reserve price system that features in all state land tenders. Yet a site's reserve price is not revealed.

'During periods of high volatility, it is not able to respond quickly enough to real-time changes happening in the marketplace,' he said.

Mr Cheong, who is also chairman and chief executive of developer SC Global, picked out two recent government land tenders to illustrate the 'conundrum and the dilemma' developers face in bidding for such sites.

A single bid for a Tampines site was rejected in June 2008 for being too low but was awarded in March at $421 per sq ft per plot ratio (psf ppr), or 3.6 times higher.

A Ten Mile Junction mixed-use site also had a failed bid of $162 psf ppr in April 2008 but went for $437 psf ppr, or 2.7 times higher, in February.

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_506359.html

What he is effectively telling everyone is that it is "KELONGED".

It is a undemocractic process.

It is "FIXED".

That is how I feel after reading that statement of his.

MORE IMPORTANTLY, IT SHOWS THAT EVEN SOME ELITES ARE VERY TULAN WITH THE GARMENT ALSO.
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[HellAngel]

When someone say "some of the blame" I think he means "most of the blame".