Why do land sale happen? Well, to the owner, they prefer cash versus holding on to the land plus they may not have anything better to do with the piece of land. To the buyer, they prefer to buy the piece of land versus keeping their money because they are able to develop the land and maximise their returns versus holding on to the cash and just waiting for the pitiful returns.
Sometimes, the land owner and the buyer may just do a joint-venture instead. This has happened in many land deals in Malaysia. We even had one recent one which was also quite viral. RM200 million land sale gives happiness to both the buyer and the seller Now, we have another one which is a much bigger deal than the RM200 million one. This one’s RM1.1 billion deal. Alas, it did not happen too.
Article in edgeprop.my The land is a 96.28 acre piece in Pulai, Johor. The seller is Iskandar Waterfront Holdings Sdn Bhd. The buyer is Ekovest. The price for the land was RM1.11 billion. It was announced in November 2019. The article also quoted Covid-19 as having an impact to the property market. This was what the buyer (Ekovest) said, “Although the parties have continued to reassess and renegotiate the terms of the proposed acquisitions after the lapse of the conditional period on Feb 20, 2021, the parties were unable to reach an agreement to-date and have therefore decided to allow the sale and purchase agreements to lapse.” Do read the fuill article here: Article in edgeprop.my
COVID-19 is involved in most land deals I believe?
Some land owners may be more open to selling their land currently without feeling too arrogant about some negotiations. Some land buyers may be more willing to buy land now because the prices are definitely lower than during the crazier days. If we look at the number of residential property transactions, it is definitely attractive for developers who are able to develop homes which everyone needs. This is why the turnaround time from buying a land to starting the development becoming shorter. Not many are buying the land to keep these days. Cost of holding is just too high too, not to mention the repayment for the loan to buy that land.
We will continue to read about more land deals, that’s for sure. More developments would continue to attract more people to buy a home they like at a price they could afford. Happy reading and if you like to keep track, just subscribe to kopiandproperty.com yeah. Take care.
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