Friday, March 26, 2010

Why would developer sell low in buoyant market?

I REFER to yesterday’s report, ‘Redas chief on land supply, home prices’, where Mr Simon Cheong, president of the Real Estate Developers Association of Singapore (Redas), said the Government’s reserve price system may have been responsible for current high property prices.

Does Mr Cheong guarantee that the developer who bids low for a site and is awarded it will sell low in today’s current buoyant market, so price increases will be muted?

If there is no guarantee, then the developer will be laughing all the way to the bank.

Khong Kiong Seng

Source: Straits Times, 26 Mar 2010

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