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SINGAPORE: The Singapore government's move to cut the number of land sites it is putting up for sale will affect plans to redevelop certain parts of the country.
But analysts say it will not slow efforts to rejuvenate the overall landscape as there are many other projects underway.
In fact, the move was praised as a prudent one, given the difficult economic environment.
Last Friday, the Ministry of National Development said no sites will be released under the confirmed list in the first half of next year.
It also cut down the sites for sale in 2008 from seven to just one. Five sites were moved to a reserve list, while one was taken off entirely.
"In view of the current market, even if tenders were to carry on, market forces will result in either no bids or bids being received at not acceptable levels," said the director of research and advisory at Colliers International, Tay Huey Ying.
CEO and regional economist of CIMB-GK Research, Song Seng Wun, said: "In the current environment where there is a crunch as far as global credit is concerned, and a downside of global growth, from the government's standpoint, it doesn't make sense to proceed with selling valuable assets when they may receive less than they normally do in an upcycle."
The cutback may also help to prevent a potential supply glut and help keep property prices firm.
The last time the government cut back on land sales was exactly seven years ago - a month after the September 11 terror attack in the United States. The global economy was then facing uncertainty and volatility similar to the current environment.
But the move means that plans to develop areas such as the Ophir-Rochor Corridor will be interrupted. The Ophir-Rochor site was one of those removed from the confirmed list.
The development of this site would have doubled the size of Singapore's financial district to match that of Hong Kong's, at about 2.82 million square metres of office space.
But observers say this will not have a major impact on Singapore's overall development.
Tay said: "I think Singapore's progress (as) a nation is in no way pivotal on the development on these sites being taken off right now. Singapore also has a lot underway in terms of physical makeover.
"For example, we already have the two IRs, the Marina Bay Financial Centre, the three retail malls in Orchard Road and a host of other luxurious residential developments coming on... (at) Sentosa Cove, Marina Bay, Orchard Road.
"Singapore's competitive edge will in no way be compromised by the slight delay in the development of these projects."
- CNA/yt
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