Are developers over-optimistic with bullish housing land bids?
The eventual disclosure of competing tender bids may signal developers’ appetite for residential land and influence expectations for future project supply and pricing.
Singapore developers submit sealed bids for government land sale sites by noon on the tender closing date, typically several months after launch.
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An open-bid auction process can make for good drama. Imagine a group of developers gathering in one place at a specified date and time, and openly bidding against one another for a prime land parcel.
However, bidding for government land sale (GLS) sites in Singapore is done differently. Typically, several months after a GLS site has been launched for sale, interested parties submit their sealed bids by noon on the closing date of tender.
While developers submitting sealed bids for land parcels may involve little fanfare, there can be much drama when the details of the tender bids received are released.