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Developers kept at ‘positive’ by Maybank on resurgent en bloc market

PC Lee
PC Lee8/25/2017 02:26 PM GMT+08  • 2 min read
Developers kept at ‘positive’ by Maybank on resurgent en bloc market
SINGAPORE (Aug 25): Maybank KimEng believes investors’ rising concerns that escalating land prices could lead to a margin squeeze for property developers, are overblown.
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SINGAPORE (Aug 25): Maybank KimEng believes investors’ rising concerns that escalating land prices could lead to a margin squeeze for property developers, are overblown.

The recent pickup in new home sales has led to a sharp fall in unsold inventory in the market. The 16,900 unsold units in the market today is less than half of the 40,400 at ots peak in 2011.

While the favourable shift in the inventory-to-sales ratio would give developers scope to raise ASPs, it has also led to aggressive land bids given shrinking landbank among developers.

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