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Singapore's Hongkong Land to wind down build-to-sell division

Singapore's Hongkong Land to Close Build-to-Sell Division

Property Developer to Focus on Core Business

Move Amidst Challenging Market Conditions

Singapore-based property developer Hongkong Land is shuttering its build-to-sell (BTS) division, a move signaling the company's shift in focus toward its core business.

The decision comes as Singapore's property market faces headwinds, including rising interest rates and a slowdown in demand. As a result, the company will transition its resources to its core businesses, which include commercial and residential property development, as well as investment and asset management.

Hongkong Land's BTS division, established in 2014, focuses on developing and selling residential projects in Singapore. However, the division's performance has been impacted by the challenging market conditions, and the company has decided to streamline its operations.

Experts Weigh In

Property analysts speculate that Hongkong Land's move is a sign of the changing market dynamics. “The BTS market in Singapore has become increasingly competitive, and it's becoming difficult for developers to achieve the margins they once enjoyed,” said Bruce Liew, an analyst at Credit Suisse.

“Hongkong Land's decision to close its BTS division is a strategic move that will allow them to focus on their core strengths and ride out the current market challenges,” added Samuel Srinivasan, a property consultant at JLL.

The closure of Hongkong Land's BTS division is a significant development in Singapore's property market, indicating the challenges faced by developers and the need for companies to adapt to the changing market conditions.