Chart of the Day: Small local developers take bigger bite in Jurong new home sales

Bigger firms have been doubting the take-up rate.

In the new homes sales residential segment, OSK-DMG’s analysts note that the smaller local developers are the ones that took the bigger bite.

According to OSK-DMG, with the exception of Jardine-affiliated MCL Land, the larger local developers have, thus far, not won any GLS bids in the Jurong area, perhaps due to initial reservations on the take-up rate of Jurong Lake District and hence the less aggressive offer and more a wait-and-see approach. With the success of recent launches, the competitive landscape in the Jurong area may just heat up further.

In Jan 2013, the land parcel at lakeside (current: Lakeville, won by MCL Land) attracted a great deal of attention from a total of 12 developers. The difference in bids then from the top five bidders were not more than 5%. According to URA, MCL Land has thus far sold 290 units out of 350 units launched (take-up: 83%) at Lakeville, at a very respectable ASP of SGD 1,314 psf vis-à-vis a land cost of SGD 651.3 psf from slightly less than two years ago.