Since the start of the year, cash-rich property developers from mainland China have been actively participating in Government Land Sales (GLS) tenders. Aiming to expand their footprint in Singapore, they have set new records in bidding prices for residential sites.
This is no doubt a big windfall for the government.
But not for local developers who may be involuntarily priced out of their hometown by the better-off counterparts from China.
Facing thin margins and depleting land bank, they may have to explore the collective sale market or venture abroad for greener pastures.
Aggressive globalization of Chinese developers
On the other hand, Chinese real estate companies are compelled to expand overseas amidst a competitive and slowing domestic market. It is also an important hedge against the possible depreciation of the Chinese yuan.
Starting from end of last year, the Chinese government has imposed tighter capital controls to discourage capital outflow. But bigger