The government housing site failed to attract any interest from developers, marking a significant downturn in the city-state’s property market, which has been struggling with soaring residential rents.
This pilot project was aimed at addressing the persistent rise in residential rents, which have been near multi-year highs despite some recent cooling. CBRE Group Inc. highlighted that this is the first instance in over two decades where such a site has failed to attract bids.For developers, “market sentiment is weak, and caution rules the day,” commented Nicholas Mak, chief research officer at Mogul.sg.
Wong Siew Ying, Head of Research and Content at PropNex, shared a similar view, indicating that developers may be hesitant due to uncertainties surrounding the demand for long-stay serviced apartments in this location, which is not in close proximity to major commercial hubs.