Developers may see increased costs in the short term as they turn to productive technology for some Government Land Sale (GLS) sites, but their margins would still be protected, media reports said quoting analysts.
Regina Lim, Head of Singapore Equity Research and ASEAN Property Research at Standard Chartered stated, “We believe margins will not be compromised. As more developers adopt prefab components, costs could decline with economies of scale.”
The latest requirement may also see developers holding back land bids as they expect higher construction costs.
Alfie Yeo, Research Analyst at DBS Group, believes that as construction companies switch to manpower and technology upgrades, the cost will be passed on to developers via their tender pricing.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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