Singapore, 13 Sep 2022 Tenders for three state-owned plots in Lentor and Bukit Batok that closed on Tuesday attracted fewer bids than expected, although top bid prices generally held up.
Analysts cited steeper interest rates, rising construction costs, heightened macroeconomic uncertainties, and a build-up of new home supply in the Lentor area as well as a number of upcoming executive condominium (EC) projects near the Bukit Batok area.
OrangeTee & Tie senior vice-president of research and analytics Christine Sun attributed the lukewarm bids to a number of ECs launching in the vicinity, including Copen Grand, the adjacent plot at Bukit Batok West Avenue 8 and the Tengah Plantation Loop site.
"Moreover, rising interest rates and higher construction costs may have deterred some developers especially since margins are not huge for EC developments," she added.