VALUE OF OPTIONS IN WHITE SITES TENDER BIDS

Abstract

The Government encourages market forces to rule in areas that could allow flexibility in deciding the type of land use. In line with pursuing its national goal towards a Tropical City of Excellence, the concept of White Site was conceived in 1995. The study seeks to find out if options in White Sites command a premium in the tender bids under the Urban Redevelopment Authority's Sale of Sites Program. Interviews were conducted and findings verified by a simple valuation exercise. Observation shows that all White Sites awarded by URA are located in the Central area and the use reflected in all these tender bids are for commercial use. Glut of a certain type of building may imply inherent weakness in the tender system. This study conclude that options does not command a premium due to strict governmental control and also factors specific to the firm. To ensure the healthy growth of this innovation, a more flexible tender system and relaxed governmental control may be necessary