EC plot in Sengkang fetches top bid of $320.58 psf ppr
(SINGAPORE) The first state land tender to close following the government announcement of bumper land sales for the second half has seen a record price for executive condominium land.
The plot, at Sengkang East Avenue and Buangkok Drive, however drew seven bids, down from 11 bids for an earlier plot at Compassvale Bow/Buangkok Drive at a tender in March.
Industry players also pointed out that for yesterday's tender, the top bid aside, the other bids were within expectation.
Market watchers suggest the bullish top bid of $320.58 per square foot of potential gross floor area could be due to the top bidder's ability to control costs better as it involves a joint venture involving a construction group and a steel supplier.
Maxdin Pte Ltd, a subsidiary of Greatearth Holding, which in turn is part of United Engineers, will hold a 65 per cent stake in the tie-up with Lee Carriers, which is part of Lee Metal Group, a leading fabricator and manufacturer of reinforcement steel products and a trader of steel products.
Maxdin was unsuccessful at two earlier tenders for EC sites that closed in March. It placed the third highest bid for a Yishun plot and was the fourth highest tenderer for the Compassvale Bow plot. Interestingly, Maxdin had offered a much lower price of $270.56 psf per plot ratio (psf ppr) for that site, despite the fact that it has a superior location (near Buangkok MRT Station), than its bid yesterday.
The Compassvale Bow plot drew a top bid of $315 psf ppr from a partnership between Frasers Centrepoint and Lum Chang. At yesterday's tender closing, Frasers Centrepoint, bidding solo, emerged in third position, with a $288 psf ppr bid.
'Bidders with financial muscle who have not been successful at recent tenders and who need to replenish land are hungrier than those who have already secured at least one site,' a developer suggested.
At yesterday's tender, the top bid was nearly 10 per cent higher than the second highest offer, of about $292 psf ppr, from a tie-up between Hoi Hup Realty and Sunway Developments.
Others who took part in yesterday's tender included Qingdao Construction (Singapore) at about $286 psf ppr, GuocoLand unit First Capital Holdings ($260 psf ppr) and a JV between NTUC Choice Homes and Chip Eng Seng ($240 psf ppr). Sim Lian Land placed the lowest bid, of $211 psf ppr.
Market watchers say the breakeven cost for Greatearth and Lee Metal could be around $600 psf. According to CB Richard Ellis, resale units at the neighbouring Park Green and The Rivervale ECs as well as The Florida in Hougang have been selling at $500-620 psf between January and May this year.
A spokesman for Greatearth's parent, United Engineers, said yesterday that the group's proposed scheme is for a project with about 500 units - comprising two, three and four-bedroom apartments with three-bedders making up the bulk of units. 'We're looking to launch the project in about six months. Greatearth will be project manager, and provide the design and build services, with Lee Metal being the passive investor.'
When the site was triggered for tender, analysts had estimated it would fetch $200-300 psf ppr. Before yesterday's tender close, the record price for EC land was the $315 psf ppr that Frasers Centrepoint and Lum Chang paid for the Compassvale Bow plot in March. That surpassed the previous record of $220 psf ppr for the Summerdale EC site in Boon Lay in May 1997.
'Give it time, land bids will tame. There's a lot of caution in the air,' said Knight Frank chairman Tan Tiong Cheng.
Industry players say visitorship at showflats slowed at the weekend, due to the weak stockmarket and the bumper land sales programme for H2.
Source: Business Times, 26 May 2010
Showing posts with label EC. Show all posts
Showing posts with label EC. Show all posts
Wednesday, May 26, 2010
Saturday, May 22, 2010
Residential sites expected to be sought after
Many of the 27 sites on GLS programme for H2 2010 are near MRT stations, popular launches
THE government has done its homework to make sure that the residential sites on the latest instalment of the government land sales (GLS) programme will be popular with both home-buyers and Many of the 27 residential sites on the programme for the second half of 2010 are near MRT stations and some are even located right next to recently launched projects that sold well. There are also four new executive condominium (EC) sites on the confirmed list - bringing the total number of EC sites, which are in high demand, to five. In comparison, there were just two EC sites in the H1 2010 confirmed list.
'There is a gap right now between mass market affordability and HDB prices,' noted Cushman & Wakefield managing director Donald Han. 'So there is an immediate need to cater for those who have been sandwiched out of the market.'
Mass market private homes are now generally selling for upwards of $800 per square foot (psf), Mr Han noted. EC units, which can sell for around $700 psf, give more buyers a cheaper option.
Li Hiaw Ho, executive director of CBRE Research, also noted that recent state land tenders for two EC sites in March 2010 received good response. This could have led to the four new EC sites being placed on the confirmed list, he said. The new sites are scattered across the island in Punggol, Pasir Ris, Tampines and Segar Road.
Analysts also said that a lot of the residential sites offered in this round of the GLS programme are near MRT stations.
'As is the case with GLS tenders in the last nine months, the sites in close proximity to MRT stations will too prove to be popular and are likely to be hotly contested, as are the ones that are situated closer to the city,' said CBRE's Mr Li. 'For example, in the recent tender exercise at Simei Street 3, there were 18 bidders in total.'
Echoed Chua Chor Hoon, head of DTZ's South-east Asia research team: 'Sites that are near to MRT or LRT stations with HDB upgrader demand are likely to see greater interest from developers.'
She cited the Punggol EC as well as private housing sites in Punggol Central/Punggol Walk; Tanah Merah Kechil Road/Tanah Merah Kechil Link; and Sengkang Square/Compassvale Road as plots likely to be popular.
The same criterion works for commercial sites too. Colliers International's executive director for investment sales Ho Eng Joo said that a white site at Boon Lay Way (next to Jurong East MRT) and a commercial plot at Paya Lebar Central (beside Paya Lebar MRT) will prove to be top draws.
Analysts also noted another interesting trend: some residential sites on the 2H 2010 GLS programme are located beside recently launched projects that have sold well. A residential site at Petir Road (in Bukit Panjang) is next to City Developments' Tree House condo.
Another site at West Coast Link/West Coast Crescent is next to Cheung Kong Holdings' The Vision, which set a new benchmark price for private homes in the West Coast area. Noted one market watcher: 'The government could be trying to make sure prices don't run up in the sub-sale market.'
Another side-effect could be felt by builders and owners of small one and two-bedroom units, which cater largely to investors.
'If developers continue to build many small units, the concern is that there will be many such units completing in a few years' time and competing in the market for sale or rental,' said DTZ's Ms Chua. The situation could be worsened if new investors can pick up larger units for the same total quantum as smaller units generally go for higher per square foot prices.
Source: Business Times, 22 May 2010
THE government has done its homework to make sure that the residential sites on the latest instalment of the government land sales (GLS) programme will be popular with both home-buyers and Many of the 27 residential sites on the programme for the second half of 2010 are near MRT stations and some are even located right next to recently launched projects that sold well. There are also four new executive condominium (EC) sites on the confirmed list - bringing the total number of EC sites, which are in high demand, to five. In comparison, there were just two EC sites in the H1 2010 confirmed list.
'There is a gap right now between mass market affordability and HDB prices,' noted Cushman & Wakefield managing director Donald Han. 'So there is an immediate need to cater for those who have been sandwiched out of the market.'
Mass market private homes are now generally selling for upwards of $800 per square foot (psf), Mr Han noted. EC units, which can sell for around $700 psf, give more buyers a cheaper option.
Li Hiaw Ho, executive director of CBRE Research, also noted that recent state land tenders for two EC sites in March 2010 received good response. This could have led to the four new EC sites being placed on the confirmed list, he said. The new sites are scattered across the island in Punggol, Pasir Ris, Tampines and Segar Road.
Analysts also said that a lot of the residential sites offered in this round of the GLS programme are near MRT stations.
'As is the case with GLS tenders in the last nine months, the sites in close proximity to MRT stations will too prove to be popular and are likely to be hotly contested, as are the ones that are situated closer to the city,' said CBRE's Mr Li. 'For example, in the recent tender exercise at Simei Street 3, there were 18 bidders in total.'
Echoed Chua Chor Hoon, head of DTZ's South-east Asia research team: 'Sites that are near to MRT or LRT stations with HDB upgrader demand are likely to see greater interest from developers.'
She cited the Punggol EC as well as private housing sites in Punggol Central/Punggol Walk; Tanah Merah Kechil Road/Tanah Merah Kechil Link; and Sengkang Square/Compassvale Road as plots likely to be popular.
The same criterion works for commercial sites too. Colliers International's executive director for investment sales Ho Eng Joo said that a white site at Boon Lay Way (next to Jurong East MRT) and a commercial plot at Paya Lebar Central (beside Paya Lebar MRT) will prove to be top draws.
Analysts also noted another interesting trend: some residential sites on the 2H 2010 GLS programme are located beside recently launched projects that have sold well. A residential site at Petir Road (in Bukit Panjang) is next to City Developments' Tree House condo.
Another site at West Coast Link/West Coast Crescent is next to Cheung Kong Holdings' The Vision, which set a new benchmark price for private homes in the West Coast area. Noted one market watcher: 'The government could be trying to make sure prices don't run up in the sub-sale market.'
Another side-effect could be felt by builders and owners of small one and two-bedroom units, which cater largely to investors.
'If developers continue to build many small units, the concern is that there will be many such units completing in a few years' time and competing in the market for sale or rental,' said DTZ's Ms Chua. The situation could be worsened if new investors can pick up larger units for the same total quantum as smaller units generally go for higher per square foot prices.
Source: Business Times, 22 May 2010
Saturday, April 17, 2010
Resale price rises: ECs outpace private homes
PRICES of resale executive condominiums (ECs) have risen much faster than those of private mass market homes in recent years, and have hit yet another high, a recent study has found.
From the first quarter of 2007 to the first quarter of this year, the prices of resale ECs shot up 70 per cent, compared with the 39.6 per cent rise in mass market private home prices, the study from Savills Singapore said.
ECs are meant to bridge the gap for buyers keen to upgrade from public housing, but are unable to afford private homes.
As a result of the price gains, resale mass market condos are now – on average – only about 14 per cent more expensive than resale ECs, well down from the 29.7 per cent margin in early 2007.
EC resale prices have risen to $568 per sq ft by the first quarter of the year, which is 17.4 per cent higher than the previous peak in the third quarter of 2008.
Data from the Urban Redevelopment Authority showed that prices of suburban homes were now 7.6 per cent above the previous 2008 peak.
Savills senior manager of research and consultancy Christine Sun said demand for ECs has picked up steadily since 2005.
This could be due to ‘a growing number of first-time home owners, particularly the higher-wage earners entering this market at times when mass market private homes and HDB resale home prices are on the rise’, she said.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said: ‘Singaporeans are starting to realise that resale ECs are good buys because they can be as good as private mass market condos.’
Indeed, prices at two ECs – Bishan Loft and Simei Green Condominium – have outdone the average price of mass market private homes in the same area, though only by 0.4 per cent to 1 per cent.
A few ECs such as Whitewater in Pasir Ris and Nuovo in Ang Mo Kio are transacting slightly below the average mass market resale prices in their areas.
Of the 23 completed ECs, Bishan Loft – within walking distance from Bishan MRT station – commands the highest prices.
The seven-year-old project recorded some of the highest EC resale deals ever done. In the January-March period this year, four high-floor units there went for $800 psf to $806 psf, or $905,000 to $1.19 million.
Bishan Loft was launched for sale in 2001 at an average price of $418 psf.
Nevertheless, the record resale prices have yet to surpass the top prices paid for two ECs in the new-home market.
Buyers bought two Yew Mei Green units of less than 100 sq m direct from the developer back in April 1998 for $810 psf and $844 psf.
ECs were introduced in 1995 to bridge the gap between public housing and private apartments. Buyers of new EC units have to meet a gross monthly household income ceiling criterion of $10,000 a month, slightly above the $8,000 income ceiling for a new HDB flat.
ECs come with condo facilities but like HDB flats, they are subject to a minimum occupation period of five years. After five years, they can be sold, but only to Singaporeans and permanent residents. They become private property after 10 years, when they can also be sold to foreigners.
With more PRs buying resale ECs, the proportion of foreign buyers in the resale EC market has hit 31.8 per cent so far this year, on a par with that of foreign purchases of non-landed private resale homes, said Savills.
Its research also showed that about 35 per cent of ECs rose in price after five years, though all increased in price after 10 years. Six ECs crossed the 10-year mark last year, while another seven would have done so by year end.
Despite the price increases, there is still a gap between resale ECs of less than 10 years old and private condos, said Mr Mak. Once prices of these ECs are too close to prices of nearby private condos, their popularity will be affected, he said.
Bishan Loft is an exception, he said, as the area has not had a new condo in a while.
Said Credo Real Estate managing director Karamjit Singh: ‘After 10 years, the differentiating factors between ECs and a private condo will be the quality of the finishes, the layout and the view and so on.’
Source: Straits Times, 17 Apr 2010
From the first quarter of 2007 to the first quarter of this year, the prices of resale ECs shot up 70 per cent, compared with the 39.6 per cent rise in mass market private home prices, the study from Savills Singapore said.
ECs are meant to bridge the gap for buyers keen to upgrade from public housing, but are unable to afford private homes.
As a result of the price gains, resale mass market condos are now – on average – only about 14 per cent more expensive than resale ECs, well down from the 29.7 per cent margin in early 2007.
EC resale prices have risen to $568 per sq ft by the first quarter of the year, which is 17.4 per cent higher than the previous peak in the third quarter of 2008.
Data from the Urban Redevelopment Authority showed that prices of suburban homes were now 7.6 per cent above the previous 2008 peak.
Savills senior manager of research and consultancy Christine Sun said demand for ECs has picked up steadily since 2005.
This could be due to ‘a growing number of first-time home owners, particularly the higher-wage earners entering this market at times when mass market private homes and HDB resale home prices are on the rise’, she said.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said: ‘Singaporeans are starting to realise that resale ECs are good buys because they can be as good as private mass market condos.’
Indeed, prices at two ECs – Bishan Loft and Simei Green Condominium – have outdone the average price of mass market private homes in the same area, though only by 0.4 per cent to 1 per cent.
A few ECs such as Whitewater in Pasir Ris and Nuovo in Ang Mo Kio are transacting slightly below the average mass market resale prices in their areas.
Of the 23 completed ECs, Bishan Loft – within walking distance from Bishan MRT station – commands the highest prices.
The seven-year-old project recorded some of the highest EC resale deals ever done. In the January-March period this year, four high-floor units there went for $800 psf to $806 psf, or $905,000 to $1.19 million.
Bishan Loft was launched for sale in 2001 at an average price of $418 psf.
Nevertheless, the record resale prices have yet to surpass the top prices paid for two ECs in the new-home market.
Buyers bought two Yew Mei Green units of less than 100 sq m direct from the developer back in April 1998 for $810 psf and $844 psf.
ECs were introduced in 1995 to bridge the gap between public housing and private apartments. Buyers of new EC units have to meet a gross monthly household income ceiling criterion of $10,000 a month, slightly above the $8,000 income ceiling for a new HDB flat.
ECs come with condo facilities but like HDB flats, they are subject to a minimum occupation period of five years. After five years, they can be sold, but only to Singaporeans and permanent residents. They become private property after 10 years, when they can also be sold to foreigners.
With more PRs buying resale ECs, the proportion of foreign buyers in the resale EC market has hit 31.8 per cent so far this year, on a par with that of foreign purchases of non-landed private resale homes, said Savills.
Its research also showed that about 35 per cent of ECs rose in price after five years, though all increased in price after 10 years. Six ECs crossed the 10-year mark last year, while another seven would have done so by year end.
Despite the price increases, there is still a gap between resale ECs of less than 10 years old and private condos, said Mr Mak. Once prices of these ECs are too close to prices of nearby private condos, their popularity will be affected, he said.
Bishan Loft is an exception, he said, as the area has not had a new condo in a while.
Said Credo Real Estate managing director Karamjit Singh: ‘After 10 years, the differentiating factors between ECs and a private condo will be the quality of the finishes, the layout and the view and so on.’
Source: Straits Times, 17 Apr 2010
Wednesday, April 14, 2010
Four residential sites up for tender
FOUR plum residential sites which will yield almost 2,000 new homes are being released for tender by the Government in a move to ramp up supply in Singapore’s hot property market.
They include Punggol’s first executive condominium (EC) site, to boast 615 homes, which will be released for tender early next month as a developer has already made a minimum bid of $147.7 million.
In stark contrast, when a Punggol EC site was launched in September 2008, there were no takers among developers.
The other three sites are for another EC – at Sengkang – and two private development sites at Sembawang and Yishun.
This is the latest round in a slew of sites being released by the authorities to inject fresh supply into the market.
Developers have been snapping up land to replenish landbanks as they scramble to meet dizzying levels of demand for new homes.
Since the start of the year, the Government has sold four residential sites and offered three other sites for tender under the confirmed list, said the Housing Board (HDB) yesterday.
These seven sites could potentially yield a total of 2,775 housing units, and that is not counting another residential site at Upper Serangoon Road to be released for sale later this month.
The heightened level of activity is a drastic turnaround from the same period a year ago, when no sites were offered or sold by the Government amid a lacklustre property market.
Sites on the reserve list could offer an extra 7,625 homes in the first half of the year, said the HDB. Reserve list sites are offered on top of the confirmed list and are triggered for tender if at least one developer lodges an initial bid that meets a minimum threshold.
To date, eight reserve list sites – yielding about 3,345 homes – have been triggered in this way, with one sold and seven under tender or to be launched.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the Government is ‘reinforcing the message that there is enough land’.
‘By announcing more than one site at a time, it is also saying to developers that they do not need to bid so aggressively. The objective is to push out enough land supply so that prices can be moderated,’ said Mr Mak.
Among the new sites, the plot at the junction of Sembawang Road and Canberra Drive and the EC located at Sengkang East Avenue and Buangkok Drive go on sale today.
The Sembawang plot, launched under the confirmed list, can be developed into strata-title landed housing or condominium units offering 290 homes.
CBRE Research executive director Li Hiaw Ho said the site is likely to fetch $95 million to $105 million if a condo is built. The tender closes on June 8.
The Sengkang EC site, triggered by a developer’s bid of $103.8 million on April 1, is served by the Sengkang LRT system and could yield 465 homes.
ECs are condo-style homes but with public housing rules. This tender closes on May 25.
Early next month, the Government will put the EC plot located at Punggol Field and a condominium project at Yishun Avenue 2 up for public tender.
The Punggol plot is near the Punggol Town Centre while the Yishun condo site is in the established Yishun Town and could generate 600 homes. A developer triggered the tender for the Yishun site with the minimum bid of $137.9 million.
HDB said yesterday the total supply of 10,550 homes for the first half of the year from the Government’s confirmed and reserve list is the highest level in the scheme’s history.
Source: Straits Times, 14 Apr 2010
They include Punggol’s first executive condominium (EC) site, to boast 615 homes, which will be released for tender early next month as a developer has already made a minimum bid of $147.7 million.
In stark contrast, when a Punggol EC site was launched in September 2008, there were no takers among developers.
The other three sites are for another EC – at Sengkang – and two private development sites at Sembawang and Yishun.
This is the latest round in a slew of sites being released by the authorities to inject fresh supply into the market.
Developers have been snapping up land to replenish landbanks as they scramble to meet dizzying levels of demand for new homes.
Since the start of the year, the Government has sold four residential sites and offered three other sites for tender under the confirmed list, said the Housing Board (HDB) yesterday.
These seven sites could potentially yield a total of 2,775 housing units, and that is not counting another residential site at Upper Serangoon Road to be released for sale later this month.
The heightened level of activity is a drastic turnaround from the same period a year ago, when no sites were offered or sold by the Government amid a lacklustre property market.
Sites on the reserve list could offer an extra 7,625 homes in the first half of the year, said the HDB. Reserve list sites are offered on top of the confirmed list and are triggered for tender if at least one developer lodges an initial bid that meets a minimum threshold.
To date, eight reserve list sites – yielding about 3,345 homes – have been triggered in this way, with one sold and seven under tender or to be launched.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the Government is ‘reinforcing the message that there is enough land’.
‘By announcing more than one site at a time, it is also saying to developers that they do not need to bid so aggressively. The objective is to push out enough land supply so that prices can be moderated,’ said Mr Mak.
Among the new sites, the plot at the junction of Sembawang Road and Canberra Drive and the EC located at Sengkang East Avenue and Buangkok Drive go on sale today.
The Sembawang plot, launched under the confirmed list, can be developed into strata-title landed housing or condominium units offering 290 homes.
CBRE Research executive director Li Hiaw Ho said the site is likely to fetch $95 million to $105 million if a condo is built. The tender closes on June 8.
The Sengkang EC site, triggered by a developer’s bid of $103.8 million on April 1, is served by the Sengkang LRT system and could yield 465 homes.
ECs are condo-style homes but with public housing rules. This tender closes on May 25.
Early next month, the Government will put the EC plot located at Punggol Field and a condominium project at Yishun Avenue 2 up for public tender.
The Punggol plot is near the Punggol Town Centre while the Yishun condo site is in the established Yishun Town and could generate 600 homes. A developer triggered the tender for the Yishun site with the minimum bid of $137.9 million.
HDB said yesterday the total supply of 10,550 homes for the first half of the year from the Government’s confirmed and reserve list is the highest level in the scheme’s history.
Source: Straits Times, 14 Apr 2010
Monday, April 12, 2010
Executive condo more popular due to rising private condo prices
Real estate agents say executive condominiums (ECs) have become more popular.
They are the next best thing for those who are priced out of the private condominium market, where prices have been hitting new highs recently.
Property agents said that in the last two to three years, the price of each square foot has increased by about 70 per cent.
In the first quarter of this year, the resale value of each square foot reached about S$570.
According to senior group district director of PropNex David Poh, the price used to be around S$300 to S$400 per square foot more than three years ago.
This puts the price per square foot of ECs about 15 per cent cheaper than that of private condominiums.
For new ECs, the price is about 25 per cent lower than that of new private condominiums.
Real estate agents said the prices of ECs have not peaked.
Two ECs in Sengkang and Yishun were launched in January. A second EC is set to be launched in Sengkang this week.
Source: Channel News Asia, 12 Apr 2010
They are the next best thing for those who are priced out of the private condominium market, where prices have been hitting new highs recently.
Property agents said that in the last two to three years, the price of each square foot has increased by about 70 per cent.
In the first quarter of this year, the resale value of each square foot reached about S$570.
According to senior group district director of PropNex David Poh, the price used to be around S$300 to S$400 per square foot more than three years ago.
This puts the price per square foot of ECs about 15 per cent cheaper than that of private condominiums.
For new ECs, the price is about 25 per cent lower than that of new private condominiums.
Real estate agents said the prices of ECs have not peaked.
Two ECs in Sengkang and Yishun were launched in January. A second EC is set to be launched in Sengkang this week.
Source: Channel News Asia, 12 Apr 2010
Friday, April 2, 2010
Another EC plot at Sengkang to be launched in 2 weeks
AN executive condominium (EC) site at the junction of Sengkang East Avenue and Buangkok Drive will go on sale in about two weeks – and is expected to be warmly received by developers.
The Housing & Development Board said yesterday it will release the site, which is on the government’s reserve list. Sites on this list are released after a developer commits to bid at or above a minimum price acceptable to the state – in this case, $103.8 million or $189 per sq ft per plot ratio (psf ppr).
The site will be the third EC plot sold this year. It will add 465 units to the supply of public housing, taking EC supply to 1,365 units in first half of 2010. Two EC sites – at Sengkang and Yishun – with a combined yield of about 900 units have been sold already this year.
‘Following the enthusiastic response from developers for the EC sites at Compassvale Bow and Yishun Avenue 11, it is no surprise a third site has been triggered,’ said Li Hiaw Ho, executive director of CBRE Research.
PropNex chief executive Mohamed Ismail said that given the slowly growing gap between private property and HDB prices – the private property price index for Q1 2010 went up 5.1 per cent, while HDB’s resale price index went up only 2.7 per cent – ‘the time is right for the launch of more ECs to cater to the sandwiched class of those who may not qualify for an HDB flat yet are unable to afford a private property’.
Analysts expect the latest site to fetch between $200 and $300 psf ppr. The site is adjacent to Park Green EC and near The Rivervale and Florida ECs, where units were sold at $520 psf to $600 psf between October 2009 and February 2010.
‘Developers should be able to break even around $500 psf after construction and other costs, and the selling price should be around $550-600 psf, which is about 25 per cent below mass market prices for similar private properties,’ said Mr Ismail.
Eugene Lim, associate director of ERA Asia-Pacific, has a higher estimate – he expects the upcoming flats to be priced at $620-$680 psf.
Source: Business Times, 2 Apr 2010
The Housing & Development Board said yesterday it will release the site, which is on the government’s reserve list. Sites on this list are released after a developer commits to bid at or above a minimum price acceptable to the state – in this case, $103.8 million or $189 per sq ft per plot ratio (psf ppr).
The site will be the third EC plot sold this year. It will add 465 units to the supply of public housing, taking EC supply to 1,365 units in first half of 2010. Two EC sites – at Sengkang and Yishun – with a combined yield of about 900 units have been sold already this year.
‘Following the enthusiastic response from developers for the EC sites at Compassvale Bow and Yishun Avenue 11, it is no surprise a third site has been triggered,’ said Li Hiaw Ho, executive director of CBRE Research.
PropNex chief executive Mohamed Ismail said that given the slowly growing gap between private property and HDB prices – the private property price index for Q1 2010 went up 5.1 per cent, while HDB’s resale price index went up only 2.7 per cent – ‘the time is right for the launch of more ECs to cater to the sandwiched class of those who may not qualify for an HDB flat yet are unable to afford a private property’.
Analysts expect the latest site to fetch between $200 and $300 psf ppr. The site is adjacent to Park Green EC and near The Rivervale and Florida ECs, where units were sold at $520 psf to $600 psf between October 2009 and February 2010.
‘Developers should be able to break even around $500 psf after construction and other costs, and the selling price should be around $550-600 psf, which is about 25 per cent below mass market prices for similar private properties,’ said Mr Ismail.
Eugene Lim, associate director of ERA Asia-Pacific, has a higher estimate – he expects the upcoming flats to be priced at $620-$680 psf.
Source: Business Times, 2 Apr 2010
Thursday, April 1, 2010
HDB puts up Sengkang EC site for tender
Another plot of land meant for Executive Condominiums (EC) will be put up for tender.
The Housing and Development Board (HDB) said on Thursday that it will launch the tender of the land parcel at Sengkang East Avenue and Buangkok Drive in two weeks.
The site, which was placed on the government’s Reserve List System, has a 99-year-lease.
It has an area of about 17,000 square metres, which can yield an estimated 465 housing units.
Developers keen on the land parcel must put in a minimum offer of S$103.8 million.
So far this year, HDB has sold two EC sites in Jurong West and Yishun.
Another two EC sites in Jurong West and Punggol remain on the Reserve List for the first half of this year’s Government Land Sales programme.
Just last month, National Development Minister Mah Bow Tan pledged to build more ECs, to cater to the housing needs of the sandwiched middle class.
Source: Channel News Asia, 1 Apr 2010
The Housing and Development Board (HDB) said on Thursday that it will launch the tender of the land parcel at Sengkang East Avenue and Buangkok Drive in two weeks.
The site, which was placed on the government’s Reserve List System, has a 99-year-lease.
It has an area of about 17,000 square metres, which can yield an estimated 465 housing units.
Developers keen on the land parcel must put in a minimum offer of S$103.8 million.
So far this year, HDB has sold two EC sites in Jurong West and Yishun.
Another two EC sites in Jurong West and Punggol remain on the Reserve List for the first half of this year’s Government Land Sales programme.
Just last month, National Development Minister Mah Bow Tan pledged to build more ECs, to cater to the housing needs of the sandwiched middle class.
Source: Channel News Asia, 1 Apr 2010
Monday, March 15, 2010
Govt to offer more exec condos this year
MORE executive condominiums (ECs) will be built this year to meet the housing needs of the ’sandwiched group’, said National Development Minister Mah Bow Tan yesterday.
This group refers to couples who do not qualify for new Housing Development Board (HDB) flats because their combined monthly income exceeds the $8,000 cap, but who may find private property too expensive.
Mr Mah, who was a guest on Channel NewsAsia’s programme Talking Point aired last night, said that ECs will make up about 10 per cent of the approximately 12,000 new flats to be built this year.
Dr Lim Wee Kiak, the MP for Sembawang GRC, and Ngee Ann Polytechnic real estate lecturer Nicholas Mak were the other guests in the show hosted by Channel NewsAsia managing director Debra Soon.
‘It is well-designed, has good location, it is something that will have all the amenities and at the same time you can enjoy the grant… That is the reason why we will be putting more ECs on the market,’ Mr Mah said.
He added that since the HDB caters to about 80 per cent of the population with incomes ranging from the low to the upper-middle, ECs will be one housing form that the Government will keep tabs on.
‘We have recently let out two tenders. And if there is a market and there is a demand, we will let out more,’ he said.
ECs come with condominium facilities but have initial sale restrictions similar to those for public housing. They become a private property fully only after a decade.
They were introduced in 1995 to bridge the gap between public housing and private apartments, aimed at Singaporeans who could afford more than an HDB flat but might find private property out of their reach.
The gross monthly household incomes of buyers of new EC units cannot exceed $10,000.
Responding to a question by Dr Lim that the aggressive bidding of the two recently closed EC tenders in Sengkang and Yishun might push up EC prices, Mr Mah said that developers are mindful of the monthly income cap of buyers and thus would not bid too excessively.
PropNex chief executive Mohamed Ismail told The Straits Times after the show that with these two sites expected to yield 905 units, he expects to see at least one more site offered this year. There could even be two more ECs if the demand for these initial projects are strong, he added.
Rising public housing prices have been a hot topic among Singaporeans. Early this month, HDB raised the minimum occupation period for resale flat buyers to three years, up from as little as one year, to cool speculative demand for HDB flats.
Asked if the measure was too mild, Mr Mah said it was a calibrated move to remove some froth caused by speculative demand. It was not meant to crash prices or curtail genuine demand from home buyers.
Several suggestions to meet buyers’ demand for flats were offered during the 45-minute talkshow. Mr Mak suggested reexamining the buyer’s selection process to assess why so many first-time applicants rejected their flats while Dr Lim asked if the differential in the pricing of less attractive units compared to the more desirable ones is big enough.
Mr Mah emphasised the unique role that HDB had to play – catering to different segments of income groups, to provide both home-ownership and eventually a source of retirement income.
Despite buyers’ unhappiness over rising prices, the public housing market is generally best left to market forces, Mr Mah added. But he also promised that first time buyers of new HDB flats will not be priced out of the market.
Source: Straits Times, 15 Mar 2010
This group refers to couples who do not qualify for new Housing Development Board (HDB) flats because their combined monthly income exceeds the $8,000 cap, but who may find private property too expensive.
Mr Mah, who was a guest on Channel NewsAsia’s programme Talking Point aired last night, said that ECs will make up about 10 per cent of the approximately 12,000 new flats to be built this year.
Dr Lim Wee Kiak, the MP for Sembawang GRC, and Ngee Ann Polytechnic real estate lecturer Nicholas Mak were the other guests in the show hosted by Channel NewsAsia managing director Debra Soon.
‘It is well-designed, has good location, it is something that will have all the amenities and at the same time you can enjoy the grant… That is the reason why we will be putting more ECs on the market,’ Mr Mah said.
He added that since the HDB caters to about 80 per cent of the population with incomes ranging from the low to the upper-middle, ECs will be one housing form that the Government will keep tabs on.
‘We have recently let out two tenders. And if there is a market and there is a demand, we will let out more,’ he said.
ECs come with condominium facilities but have initial sale restrictions similar to those for public housing. They become a private property fully only after a decade.
They were introduced in 1995 to bridge the gap between public housing and private apartments, aimed at Singaporeans who could afford more than an HDB flat but might find private property out of their reach.
The gross monthly household incomes of buyers of new EC units cannot exceed $10,000.
Responding to a question by Dr Lim that the aggressive bidding of the two recently closed EC tenders in Sengkang and Yishun might push up EC prices, Mr Mah said that developers are mindful of the monthly income cap of buyers and thus would not bid too excessively.
PropNex chief executive Mohamed Ismail told The Straits Times after the show that with these two sites expected to yield 905 units, he expects to see at least one more site offered this year. There could even be two more ECs if the demand for these initial projects are strong, he added.
Rising public housing prices have been a hot topic among Singaporeans. Early this month, HDB raised the minimum occupation period for resale flat buyers to three years, up from as little as one year, to cool speculative demand for HDB flats.
Asked if the measure was too mild, Mr Mah said it was a calibrated move to remove some froth caused by speculative demand. It was not meant to crash prices or curtail genuine demand from home buyers.
Several suggestions to meet buyers’ demand for flats were offered during the 45-minute talkshow. Mr Mak suggested reexamining the buyer’s selection process to assess why so many first-time applicants rejected their flats while Dr Lim asked if the differential in the pricing of less attractive units compared to the more desirable ones is big enough.
Mr Mah emphasised the unique role that HDB had to play – catering to different segments of income groups, to provide both home-ownership and eventually a source of retirement income.
Despite buyers’ unhappiness over rising prices, the public housing market is generally best left to market forces, Mr Mah added. But he also promised that first time buyers of new HDB flats will not be priced out of the market.
Source: Straits Times, 15 Mar 2010
Analysts expect strong interest in executive condo developments
Executive condominiums (ECs) are back in the spotlight, amid a buoyant property market. They come with finishes similar to a private condominium, but are priced more affordably.
Analysts expect strong interest for two new developments to be launched at the end of the year. But they also caution buyers against being too hasty.
When the Eastvale executive condominium in Pasir Ris was launched, units were going for about S$400 per square foot. A recent sale went for S$600 per square foot, comparable to similar private properties in the area.
Executive condominiums were launched in the mid-1990s, and Eastvale was one of the first projects. They cater to the needs of the “sandwiched” class – buyers who could not afford private properties, but whose household incomes exceed the income ceiling set by the Housing and Development Board (HDB).
Now 15 years on, calls by the “sandwiched” class for more affordable housing are growing, and housing authorities said executive condominiums will form 10 per cent of new flats built this year.
For first-time home buyers, they can apply for a S$30,000 housing grant, as long as monthly combined incomes do not exceed S$10,000. And after a period of 10 years, they can sell them in the private property market.
In line with HDB rules, these units are first subject to a five-year Minimum Occupation Period, after which they can be sold only to Singaporeans and Permanent Residents (PRs).
With interest rates remaining low, it sounds like a good deal. But with a economy recovering, analysts cautioned that interest rates could head higher.
Colin Tan, head of Research & Consultancy at Chesterton Suntec International, said: “Because of all the various government stimulus spending, interest rates have been kept artificially low for quite a long time.
“With a low interest rate environment, it’s easy to put money down and meet the mortgage instalments. But when interest rates double or triple, you expect your mortgage to be doubling or tripling. So the question is, are you able to sustain that.”
Analyst Mohamed Ismail of Propnex said that while such developments perform well in the resale market during boom times, resale prices tend to go down much faster than similar private properties when the market hits a snag.
Tan agreed, saying it is hard for ECs to shake off their image as the “poorer cousin” of private condominiums. One reason is because developers may compromise on the quality of finishes in order to meet the budgets of buyers.
So if the private property market is subdued, as it was in the post-SARS years, then between an executive condominium and a private one, buyers would be more willing to fork out for the latter.
Chua Yang Liang, head of Research (Southeast Asia) of Jones Lang LaSalle, said the increase in executive condominium projects may not impact greatly on the private property market as EC buyers are a select group of buyers, most likely the “sandwiched” class.
He said entry-level mass market private home prices have averaged S$800 per square foot in recent months, and the executive condominiums will have to be priced lower.
“Going by the recent transactions, it’s averaging about S$550 to S$650 psf, so pricing in that market would be around that region – S$550, S$650, and S$750 psf, that kind of range,” said Chua.
Source: Channel News Asia, 15 Mar 2010
Analysts expect strong interest for two new developments to be launched at the end of the year. But they also caution buyers against being too hasty.
When the Eastvale executive condominium in Pasir Ris was launched, units were going for about S$400 per square foot. A recent sale went for S$600 per square foot, comparable to similar private properties in the area.
Executive condominiums were launched in the mid-1990s, and Eastvale was one of the first projects. They cater to the needs of the “sandwiched” class – buyers who could not afford private properties, but whose household incomes exceed the income ceiling set by the Housing and Development Board (HDB).
Now 15 years on, calls by the “sandwiched” class for more affordable housing are growing, and housing authorities said executive condominiums will form 10 per cent of new flats built this year.
For first-time home buyers, they can apply for a S$30,000 housing grant, as long as monthly combined incomes do not exceed S$10,000. And after a period of 10 years, they can sell them in the private property market.
In line with HDB rules, these units are first subject to a five-year Minimum Occupation Period, after which they can be sold only to Singaporeans and Permanent Residents (PRs).
With interest rates remaining low, it sounds like a good deal. But with a economy recovering, analysts cautioned that interest rates could head higher.
Colin Tan, head of Research & Consultancy at Chesterton Suntec International, said: “Because of all the various government stimulus spending, interest rates have been kept artificially low for quite a long time.
“With a low interest rate environment, it’s easy to put money down and meet the mortgage instalments. But when interest rates double or triple, you expect your mortgage to be doubling or tripling. So the question is, are you able to sustain that.”
Analyst Mohamed Ismail of Propnex said that while such developments perform well in the resale market during boom times, resale prices tend to go down much faster than similar private properties when the market hits a snag.
Tan agreed, saying it is hard for ECs to shake off their image as the “poorer cousin” of private condominiums. One reason is because developers may compromise on the quality of finishes in order to meet the budgets of buyers.
So if the private property market is subdued, as it was in the post-SARS years, then between an executive condominium and a private one, buyers would be more willing to fork out for the latter.
Chua Yang Liang, head of Research (Southeast Asia) of Jones Lang LaSalle, said the increase in executive condominium projects may not impact greatly on the private property market as EC buyers are a select group of buyers, most likely the “sandwiched” class.
He said entry-level mass market private home prices have averaged S$800 per square foot in recent months, and the executive condominiums will have to be priced lower.
“Going by the recent transactions, it’s averaging about S$550 to S$650 psf, so pricing in that market would be around that region – S$550, S$650, and S$750 psf, that kind of range,” said Chua.
Source: Channel News Asia, 15 Mar 2010
Sunday, March 14, 2010
Expect to pay more for exec condos
Executive condominium (EC) prices look set to rise further with the close of two EC tenders at higher-than-expected bids in the past two weeks.
The Sengkang EC site attracted a top bid of $315 per sq ft (psf) of gross floor area, while the Yishun EC site drew a top bid of $281 psf of gross floor area.
Analysts estimated that the winning bidders will have to sell the units at Sengkang for $650 to $700 psf and those in Yishun for $600 to $650 psf.
CBRE Research said the median price of new 99-year leasehold private condo units in similar locations as ECs was just $663 psf as of last month.
However, the latest 99-year condo The Estuary in Yishun sold at some $750 to $800 psf, with more than 500 units snapped up since early this month. It is therefore reasonable to expect that new EC projects may be launched at more than $600 psf, it said.
In the resale market, EC unit prices have risen in line with the market, closing the gap between resale prices of EC and private condo units.
As of last month, resale EC unit prices have reached $557 psf, up 75 per cent from the market bottom in the third quarter of 2006.
The price gap between resale private condo units and resale EC units has narrowed to 11 per cent, from 14 per cent late last year, according to CBRE Research.
This could have a bearing on the gap between new EC units and new private condo units – the gap could become smaller than the historical one of 25 per cent to 35 per cent, said its executive director Li Hiaw Ho.
Said PropNex chief executive Mohamed Ismail: ‘There will still be a gap of around 25 per cent. It is still there, but it may be slightly smaller because land cost has become more competitive.’
This price gap reflects the constraints attached to ECs such as qualifying conditions and the restriction on resale only after the minimum occupation period of five years, experts said.
ECs come with condo facilities but have initial sale restrictions similar to those for public housing. They convert to a private property only after a decade.
They were introduced in 1995 to bridge the gap between public housing and private apartments, aimed at Singaporeans who could afford more than an HDB flat but might find private property out of their reach.
Buyers of new EC units have to meet a gross monthly household income ceiling criterion of $10,000 a month, slightly above the $8,000 income ceiling for a new HDB flat.
Despite the expected higher EC prices, there is likely to be pent-up demand for the new ECs, Mr Ismail and Ngee Ann Polytechnic lecturer Nicholas Mak predicted.
Firstly, there have not been any EC launches since 2005, when La Casa in Woodlands was marketed, said Mr Mak.
Also, prices of 99-year leasehold condo units as well as HDB resale flats have gone up, he pointed out.
‘Those who earn more than $8,000 do not qualify for build-to-order or design, build and sell scheme HDB flats. They would have a greater motivation to apply for ECs,’ said Mr Ismail.
Besides, the higher psf price may not translate to a huge lump sum. ‘Given the two recent EC bids, the developers are likely to offer more smaller units, such that they can sell them at the right prices,’ he said.
‘Developers these days are offering more smaller units. Buyers will have a better lifestyle but they will have to compromise on space.’
Source: Sunday Times, 14 Mar 2010
The Sengkang EC site attracted a top bid of $315 per sq ft (psf) of gross floor area, while the Yishun EC site drew a top bid of $281 psf of gross floor area.
Analysts estimated that the winning bidders will have to sell the units at Sengkang for $650 to $700 psf and those in Yishun for $600 to $650 psf.
CBRE Research said the median price of new 99-year leasehold private condo units in similar locations as ECs was just $663 psf as of last month.
However, the latest 99-year condo The Estuary in Yishun sold at some $750 to $800 psf, with more than 500 units snapped up since early this month. It is therefore reasonable to expect that new EC projects may be launched at more than $600 psf, it said.
In the resale market, EC unit prices have risen in line with the market, closing the gap between resale prices of EC and private condo units.
As of last month, resale EC unit prices have reached $557 psf, up 75 per cent from the market bottom in the third quarter of 2006.
The price gap between resale private condo units and resale EC units has narrowed to 11 per cent, from 14 per cent late last year, according to CBRE Research.
This could have a bearing on the gap between new EC units and new private condo units – the gap could become smaller than the historical one of 25 per cent to 35 per cent, said its executive director Li Hiaw Ho.
Said PropNex chief executive Mohamed Ismail: ‘There will still be a gap of around 25 per cent. It is still there, but it may be slightly smaller because land cost has become more competitive.’
This price gap reflects the constraints attached to ECs such as qualifying conditions and the restriction on resale only after the minimum occupation period of five years, experts said.
ECs come with condo facilities but have initial sale restrictions similar to those for public housing. They convert to a private property only after a decade.
They were introduced in 1995 to bridge the gap between public housing and private apartments, aimed at Singaporeans who could afford more than an HDB flat but might find private property out of their reach.
Buyers of new EC units have to meet a gross monthly household income ceiling criterion of $10,000 a month, slightly above the $8,000 income ceiling for a new HDB flat.
Despite the expected higher EC prices, there is likely to be pent-up demand for the new ECs, Mr Ismail and Ngee Ann Polytechnic lecturer Nicholas Mak predicted.
Firstly, there have not been any EC launches since 2005, when La Casa in Woodlands was marketed, said Mr Mak.
Also, prices of 99-year leasehold condo units as well as HDB resale flats have gone up, he pointed out.
‘Those who earn more than $8,000 do not qualify for build-to-order or design, build and sell scheme HDB flats. They would have a greater motivation to apply for ECs,’ said Mr Ismail.
Besides, the higher psf price may not translate to a huge lump sum. ‘Given the two recent EC bids, the developers are likely to offer more smaller units, such that they can sell them at the right prices,’ he said.
‘Developers these days are offering more smaller units. Buyers will have a better lifestyle but they will have to compromise on space.’
Source: Sunday Times, 14 Mar 2010
Saturday, March 13, 2010
Govt to build more Executive Condos if there is demand: Mah Bow Tan
The government will build more Executive Condominiums (ECs) to meet the housing needs of what is described as the “sandwiched group”.
For this year, ECs will make up 10 per cent of about 12,000 new flats to be built.
National Development Minister Mah Bow Tan said this on Channel NewsAsia’s programme, “Talking Point”. He was responding to a question on prices for the market for ECs, which is regarded as the intermediate market between HDB flats and private apartments.
He said: “The EC market is really a hybrid. It is HDB in the first five years, which will morph into private after ten years. And the reason is we wanted to cater to the so-called sandwiched group – the S$8,000 to S$10,000 group. So that is the reason why the income ceiling for ECs is not S$8,000 but S$10,000.
“And we still give the S$30,000 grant. So if you are a person, couple who are earning say S$9,000, ideally that is the housing type for you. It is well-designed; it is in good location. It is something that would have all the amenities. And at the same time, you still enjoy the grant.
“So that is the reason why we are putting up more ECs on the market. We are catering for 80 per cent of the population, so EC is one housing form that we are watching, and we have recently let out two tenders. And if there is a market and there is a demand, we will let out more.”
This special edition of “Talking Point” can be viewed on Sunday night at 10.15pm on Channel NewsAsia.
Source: Channel News Asia, 13 Mar 2010
For this year, ECs will make up 10 per cent of about 12,000 new flats to be built.
National Development Minister Mah Bow Tan said this on Channel NewsAsia’s programme, “Talking Point”. He was responding to a question on prices for the market for ECs, which is regarded as the intermediate market between HDB flats and private apartments.
He said: “The EC market is really a hybrid. It is HDB in the first five years, which will morph into private after ten years. And the reason is we wanted to cater to the so-called sandwiched group – the S$8,000 to S$10,000 group. So that is the reason why the income ceiling for ECs is not S$8,000 but S$10,000.
“And we still give the S$30,000 grant. So if you are a person, couple who are earning say S$9,000, ideally that is the housing type for you. It is well-designed; it is in good location. It is something that would have all the amenities. And at the same time, you still enjoy the grant.
“So that is the reason why we are putting up more ECs on the market. We are catering for 80 per cent of the population, so EC is one housing form that we are watching, and we have recently let out two tenders. And if there is a market and there is a demand, we will let out more.”
This special edition of “Talking Point” can be viewed on Sunday night at 10.15pm on Channel NewsAsia.
Source: Channel News Asia, 13 Mar 2010
Friday, March 12, 2010
China SOE unit MCC Land is top bidder for Yishun EC site
MCC Land, part of Chinese state- owned enterprise Metallurgical Corporation of China (MCC Group), has emerged top bidder for an executive condominium site at Yishun Avenue 11.
Its bid of $127.8 million or $281 per square foot per plot ratio (psf ppr) was 7.5 per cent above the next highest offer of $261.68 psf ppr from fellow mainland Chinese group Qingjian Realty.
The tender for the 99-year leasehold plot drew 10 bids, with the lowest bid from SK Land (owned by a Lee Boon Teow) at $103 psf ppr.
If MCC Land is awarded the site, it will mark the MCC Group’s maiden Singapore property development.
MCC Land managing director Tan Zhiyong told BT that the group’s proposed scheme for the site is an eco-friendly project with over 400 units comprising two, three and four-bedroom apartments. The breakeven cost will be in the $500-550 psf region and the plan is to launch the project this year.
Mr Tan would not be drawn on likely selling prices but said: ‘We will keep it affordable, given the buying eligibility criteria for exec condos of a maximum $10,000 monthly household income.’
The developer will not build any shoebox units in the project, he said. ‘We want to follow the Singapore government’s vision for ECs. Let the people have enough room to pro-create and set up a family.’
This is the second time MCC Land has taken part in a Singapore Government Land Sales tender. Its first attempt, a week ago, was the tender for an EC site near Buangkok MRT Station. In that tender, it emerged second-highest bidder, pipped by a tie-up between Frasers Centrepoint and Lum Chang Building Contractors – by 1.4 per cent.
While MCC Land is new to Singapore, the MCC Group’s Singapore construction unit China Jingye Engineering Corporation Ltd (Singapore Branch) has been doing business here for almost 14 years. It is the main contractor for Universal Studios at Resorts World Sentosa.
Mr Tan told BT that if the group is awarded the Yishun EC site, it will ‘definitely explore’ the possibility of handling the project’s construction in-house. ‘But we will consider outside parties to handle the construction if they can do it cheaper. Whatever it is, we will not compromise on quality,’ he said.
‘Looking at the beautiful environment in the location – it is next to parks – we will complement this by using environmentally friendly technology and concepts for our project, such as having solar panels for the general areas and recycling rainwater for non-potable use.’
MCC Land will continue to seek good development land – be it residential, commercial or mixed-use sites – across the island, he said.
MCC Group – with dual listings on the Hong Kong and Shanghai bourses – is involved in engineering, procurement and construction, mining, paper-making, equipment fabrication and property development. It is a Fortune 500 company.
Seven of the total 10 bids in yesterday’s tender exceeded the $150-210 psf ppr that the site was estimated to fetch when it was launched in January by the Housing & Development Board.
But market watchers yesterday were not too surprised by the strong bids, pointing to robust sales recently for the launch of The Estuary, a 99-year leasehold private condo project in a better location in Yishun that fronts Lower Seletar Reservoir and is near Khatib MRT Station.
More than 500 units in The Estuary have been sold at an average price of $758 psf. ‘The developer of the latest EC site in Yishun might be able to achieve an average selling price of about $650 psf,’ said an industry observer.
CB Richard Ellis executive director Li Hiaw Ho said that while the latest EC plot may be less accessible, future residents will nonetheless enjoy a serene environment as it is close to Yishun Park and Orchid Country Club. ‘It’s also a short drive from Northpoint mall and other amenities at Yishun Central,’ he said.
ECs are a hybrid of public and private housing. EC projects have initial eligibility, ownership and resale restrictions similar to public housing, but these are lifted after 10 years.
Other bidders in yesterday’s tender included United Engineers unit Maxdin (about $257 psf ppr), Far East Organization ($256 psf ppr) and JBE Development, controlled by Hongkonger Patrick Lam, who developed The Luxe in Handy Road, at $227 psf ppr.
Source: Business Times, 12 Mar 2010
Its bid of $127.8 million or $281 per square foot per plot ratio (psf ppr) was 7.5 per cent above the next highest offer of $261.68 psf ppr from fellow mainland Chinese group Qingjian Realty.
The tender for the 99-year leasehold plot drew 10 bids, with the lowest bid from SK Land (owned by a Lee Boon Teow) at $103 psf ppr.
If MCC Land is awarded the site, it will mark the MCC Group’s maiden Singapore property development.
MCC Land managing director Tan Zhiyong told BT that the group’s proposed scheme for the site is an eco-friendly project with over 400 units comprising two, three and four-bedroom apartments. The breakeven cost will be in the $500-550 psf region and the plan is to launch the project this year.
Mr Tan would not be drawn on likely selling prices but said: ‘We will keep it affordable, given the buying eligibility criteria for exec condos of a maximum $10,000 monthly household income.’
The developer will not build any shoebox units in the project, he said. ‘We want to follow the Singapore government’s vision for ECs. Let the people have enough room to pro-create and set up a family.’
This is the second time MCC Land has taken part in a Singapore Government Land Sales tender. Its first attempt, a week ago, was the tender for an EC site near Buangkok MRT Station. In that tender, it emerged second-highest bidder, pipped by a tie-up between Frasers Centrepoint and Lum Chang Building Contractors – by 1.4 per cent.
While MCC Land is new to Singapore, the MCC Group’s Singapore construction unit China Jingye Engineering Corporation Ltd (Singapore Branch) has been doing business here for almost 14 years. It is the main contractor for Universal Studios at Resorts World Sentosa.
Mr Tan told BT that if the group is awarded the Yishun EC site, it will ‘definitely explore’ the possibility of handling the project’s construction in-house. ‘But we will consider outside parties to handle the construction if they can do it cheaper. Whatever it is, we will not compromise on quality,’ he said.
‘Looking at the beautiful environment in the location – it is next to parks – we will complement this by using environmentally friendly technology and concepts for our project, such as having solar panels for the general areas and recycling rainwater for non-potable use.’
MCC Land will continue to seek good development land – be it residential, commercial or mixed-use sites – across the island, he said.
MCC Group – with dual listings on the Hong Kong and Shanghai bourses – is involved in engineering, procurement and construction, mining, paper-making, equipment fabrication and property development. It is a Fortune 500 company.
Seven of the total 10 bids in yesterday’s tender exceeded the $150-210 psf ppr that the site was estimated to fetch when it was launched in January by the Housing & Development Board.
But market watchers yesterday were not too surprised by the strong bids, pointing to robust sales recently for the launch of The Estuary, a 99-year leasehold private condo project in a better location in Yishun that fronts Lower Seletar Reservoir and is near Khatib MRT Station.
More than 500 units in The Estuary have been sold at an average price of $758 psf. ‘The developer of the latest EC site in Yishun might be able to achieve an average selling price of about $650 psf,’ said an industry observer.
CB Richard Ellis executive director Li Hiaw Ho said that while the latest EC plot may be less accessible, future residents will nonetheless enjoy a serene environment as it is close to Yishun Park and Orchid Country Club. ‘It’s also a short drive from Northpoint mall and other amenities at Yishun Central,’ he said.
ECs are a hybrid of public and private housing. EC projects have initial eligibility, ownership and resale restrictions similar to public housing, but these are lifted after 10 years.
Other bidders in yesterday’s tender included United Engineers unit Maxdin (about $257 psf ppr), Far East Organization ($256 psf ppr) and JBE Development, controlled by Hongkonger Patrick Lam, who developed The Luxe in Handy Road, at $227 psf ppr.
Source: Business Times, 12 Mar 2010
China firm tops bid for EC site
A CHINESE firm new to Singapore's residential development scene has topped the bidding for an executive condominium (EC) site in Yishun.
Beijing-headquartered MCC Land (Singapore), which lost out on last week's tender for an EC site in Sengkang, was the highest bidder for the 15,074 sq m Yishun plot.
Its $127.8 million bid, or $281.31 per sq ft (psf) of gross floor area, easily beat earlier analysts' expectations of $150-$210 psf of gross floor area.
Qingdao-based firm Qingjian Realty - which is behind the Natura Loft HDB design, build and sell scheme in Bishan - came in second, with a bid of $118.89 million or $261.71 psf of gross floor area.
Maxdin, part of United Engineers' unit Greatearth Holding, was edged into a close third place with its offer of $117 million or $257.53 psf of gross floor area.
Among the other unsuccessful contenders were Far East Organization, Sim Lian Land and Boon Keng Development.
Most bidders also tendered for the Sengkang site last week.
Many of them are construction companies with the know-how to control and manage building costs, and are well placed to keep development expenses as low as possible, experts noted.
'The results of this second EC site tender demonstrate developers' fervour in acquiring sites for mass-market housing,' said CBRE Research executive director Li Hiaw Ho.
MCC Land is part of listed Metallurgical Corporation of China, one of the world's largest engineering and construction firms.
It has provided engineering and construction services in Singapore, and in 2008 clinched a contract for Universal Studios Singapore at Resorts World Sentosa. Qingjian Realty also began operations here as a contractor.
The Yishun EC plot can yield about 385 units and is near the completed Lilydale EC project. In the resale market of January-February this year, units there were selling at between $510 psf and $540 psf.
Although not within walking distance of an MRT station, the Yishun site is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir.
CBRE Research said the winning bid will translate into a break-even price of around $520 psf.
At this level, the final selling price of the EC units is likely to be around $600-$650 psf, said Colliers International's executive director of investment sales Ho Eng Joo.
The winning bid, he said, took its cue from last week's Sengkang EC tender, which attracted a higher-than-expected top bid of $315 psf of gross floor area.
Mr Li said the success of the recent launch of The Estuary private condominium in Yishun Avenue 1 had boosted developer confidence in selling EC projects in this location to first-timers. Over 500 units of The Estuary were reportedly sold at a price of $750-$800 psf, he said.
The winners of the Sengkang and Yishun EC tenders have to set aside 95 per cent of units in the initial month of sale for first-time home buyers.
ECs were introduced in 1995 to bridge the gap between public housing and private apartments. Only those with a gross monthly household income of $10,000 or less can apply.
Source, Straits Times 12 March 2010
Thursday, March 11, 2010
EC site at Yishun Ave 11 attracts 10 bids
The executive condominium site at Yishun Avenue 11 has attracted 10 bids.
MCC Land Singapore put in the top bid of $127.8m for the 99-year leasehold plot. This translates into S$281 per square foot per plot ratio.
The second highest bid came from Qingjian Realty, at S$118.8m, followed by Maxdin Pte Ltd which placed a bid of S$117m. The remaining offers range between S$46.8m and S$116m.
Real estate consultancy firm CB Richard Ellis says the tender results show that developers in Singapore are keen to acquire land for mass market housing.
An earlier tender for an EC site at Compassvale Bow had attracted 11 bids.
CBRE also noted that developers may have been more confident, following the success of The Estuary project which was launched recently at Yishun Avenue 1.
CBRE said the top bid of $127.8m for the latest EC site will work out to a breakeven price of S$520 psf.
Source: Channel News Asia, 11 Mar 2010
MCC Land Singapore put in the top bid of $127.8m for the 99-year leasehold plot. This translates into S$281 per square foot per plot ratio.
The second highest bid came from Qingjian Realty, at S$118.8m, followed by Maxdin Pte Ltd which placed a bid of S$117m. The remaining offers range between S$46.8m and S$116m.
Real estate consultancy firm CB Richard Ellis says the tender results show that developers in Singapore are keen to acquire land for mass market housing.
An earlier tender for an EC site at Compassvale Bow had attracted 11 bids.
CBRE also noted that developers may have been more confident, following the success of The Estuary project which was launched recently at Yishun Avenue 1.
CBRE said the top bid of $127.8m for the latest EC site will work out to a breakeven price of S$520 psf.
Source: Channel News Asia, 11 Mar 2010
Friday, January 15, 2010
2 new exec condo sites launched
EXECUTIVE condominiums (ECs) are making a comeback after a hiatus of almost five years, as the Government ramps up the supply of flats for middle-income buyers.
The HDB is launching two EC housing sites today, in Sengkang and Yishun, that will yield about 900 new homes in the next few years. ECs boast many of the facilities of private estates but are subject to such HDB rules as income ceiling and minimum occupation period.
Analysts told The Straits Times they expect the sites to attract a lot of interest from developers, given the demand for mass market flats that started heating up in the second quarter last year. Suburban home prices rose by an estimated 11.2 per cent last year, and in the process left a group of ’sandwich-class’ buyers who have been priced out of the market and are looking for alternatives, say analysts.
The HDB move marks a turnaround for a type of housing that lost popularity in recent years due to the affordable prices of mass market condos.
PropNex chief executive Mohamed Ismail said even though it will be a while before the ECs are launched for sale, buyers are expected to bite when the time comes. ‘In the past, there was no demand for ECs because the private mass market homes were largely affordable, but with tight supply and high demand, HDB home buyers will welcome this fresh supply,’ he said.
ECs were introduced in 1996 to provide for middle-income buyers who wanted private property living but were unable to afford the prices. The last EC launched was La Casa in Woodlands in 2005, which was completed in early 2008. A Punggol EC site was launched in September 2008 but had no takers.
ECs fully convert to private housing after 10 years. First-time buyers with monthly incomes of up to $10,000 can apply for a $30,000 housing grant.
Prices of ECs have been on the rise in tandem with the mass market boom, said analysts yesterday.
A CB Richard Ellis report last November found the median resale prices of ECs had increased 63 per cent in recent years – from $319 per sq ft (psf) at the bottom of the market in the third quarter of 2006 to $519 psf in October last year.
They have inched even higher in the past three months, with homes in good locations hitting around $600 to 700 psf.
A 1,464 sq ft home at Bishan Loft, for example, sold for $1.12 million or $765 psf in December, according to data from the Urban Redevelopment Authority
ERA Asia-Pacific associate director Eugene Lim pointed out that entry-level mass market condos are now priced north of $800,000 for a three-bedder.
‘ECs are expected to be priced below this and are attractive due to the HDB’s grant, so it will offer home buyers an alternative,’ he said.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said he expects about five to 10 bids for each of the two sites.
He also estimates that the bidding prices will range from $120 million to $141 million for the Sengkang site and $72 million to $96 million for the Yishun plot.
Mr Mak cautioned that despite the positive sentiment in the mass market, it will be difficult to predict responses from buyers when the homes are finally launched – likely up to a year’s time.
‘We also don’t know the interest rates situation then, so it’s too early to accurately predict demand,’ he said.
Home buyer Du Zuo Ling, 27, said the ECs would top her list of homes to consider when they are launched as HDB resale flats are getting more expensive.
‘With ECs, the income ceiling is higher, and we can get housing grants. It will be good to have more of such choices,’ said Ms Du.
Source: Straits Times, 15 Jan 2010
The HDB is launching two EC housing sites today, in Sengkang and Yishun, that will yield about 900 new homes in the next few years. ECs boast many of the facilities of private estates but are subject to such HDB rules as income ceiling and minimum occupation period.
Analysts told The Straits Times they expect the sites to attract a lot of interest from developers, given the demand for mass market flats that started heating up in the second quarter last year. Suburban home prices rose by an estimated 11.2 per cent last year, and in the process left a group of ’sandwich-class’ buyers who have been priced out of the market and are looking for alternatives, say analysts.
The HDB move marks a turnaround for a type of housing that lost popularity in recent years due to the affordable prices of mass market condos.
PropNex chief executive Mohamed Ismail said even though it will be a while before the ECs are launched for sale, buyers are expected to bite when the time comes. ‘In the past, there was no demand for ECs because the private mass market homes were largely affordable, but with tight supply and high demand, HDB home buyers will welcome this fresh supply,’ he said.
ECs were introduced in 1996 to provide for middle-income buyers who wanted private property living but were unable to afford the prices. The last EC launched was La Casa in Woodlands in 2005, which was completed in early 2008. A Punggol EC site was launched in September 2008 but had no takers.
ECs fully convert to private housing after 10 years. First-time buyers with monthly incomes of up to $10,000 can apply for a $30,000 housing grant.
Prices of ECs have been on the rise in tandem with the mass market boom, said analysts yesterday.
A CB Richard Ellis report last November found the median resale prices of ECs had increased 63 per cent in recent years – from $319 per sq ft (psf) at the bottom of the market in the third quarter of 2006 to $519 psf in October last year.
They have inched even higher in the past three months, with homes in good locations hitting around $600 to 700 psf.
A 1,464 sq ft home at Bishan Loft, for example, sold for $1.12 million or $765 psf in December, according to data from the Urban Redevelopment Authority
ERA Asia-Pacific associate director Eugene Lim pointed out that entry-level mass market condos are now priced north of $800,000 for a three-bedder.
‘ECs are expected to be priced below this and are attractive due to the HDB’s grant, so it will offer home buyers an alternative,’ he said.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said he expects about five to 10 bids for each of the two sites.
He also estimates that the bidding prices will range from $120 million to $141 million for the Sengkang site and $72 million to $96 million for the Yishun plot.
Mr Mak cautioned that despite the positive sentiment in the mass market, it will be difficult to predict responses from buyers when the homes are finally launched – likely up to a year’s time.
‘We also don’t know the interest rates situation then, so it’s too early to accurately predict demand,’ he said.
Home buyer Du Zuo Ling, 27, said the ECs would top her list of homes to consider when they are launched as HDB resale flats are getting more expensive.
‘With ECs, the income ceiling is higher, and we can get housing grants. It will be good to have more of such choices,’ said Ms Du.
Source: Straits Times, 15 Jan 2010
First-timers to get 95% of latest EC projects
Sengkang plot seen going for $190-300 psf ppr; Yishun, $150-210 psf ppr
Two executive condominium (EC) sites, one in Sengkang and the other in Yishun, will come with a twist when they are launched today. The winning tenderers will have to set aside 95 per cent of units in the initial month of sale for first-time home buyers. That is, those that have yet to receive a housing subsidy.
Market watchers say that the strategy is aimed at meeting strong demand for HDB flats from this segment of late.
ECs are a hybrid of public and private housing. They are strata-titled apartments with facilities comparable to private condos. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing; but these are completely removed after 10 years.
Knight Frank managing director (residential services) Peter Ow says that setting aside 95 per cent of a new EC project for first-timers will help ease their difficulty in purchasing a home.
‘Looking at how recent Built-To-Order HDB flats are oversubscribed and an expected continued recovery in the private residential market, ECs – a hybrid fulfilling the difference in these two property types – are expected to be met with overwhelming buying interest,’ he added.
‘Ironically, though, first-time buyers may have less purchasing power . .. and would thus have to be prudent and ensure they will be able to continually finance their purchase, even if they are given the privilege to buy,’ he added.
Of the two 99-year leasehold plots on offer, the Sengkang plot, near Buangkok MRT Station, will be more highly sought after and hence fetch a higher unit land price, say property consultants. It can be developed into 520 apartments and is just one MRT stop away from Compass Point mall.
The Yishun plot, which can yield about 385 units, is not within walking distance of an MRT station, although it could make for a conducive living environment. It is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir. The Yishun plot is next to a completed EC project, Lilydale.
Property consultants that BT polled predict that land bids for the more popular Sengkang plot would range from about $190 to $300 per square foot per plot ratio (psf ppr), with target average selling prices of $550-600 psf.
Colliers International director Tay Huey Ying says that three EC projects in the north-east region – Park Green, The Rivervale and The Florida – sold at average prices of $525-546 psf – in Q4 2009.
For the Yishun plot, consultants expect bids of around $150-210 psf ppr with average selling prices of $500-580 psf. Units in Lilydale next door transacted at $494 psf on average last quarter, notes Ms Tay.
Real estate lecturer Nicholas Mak predicts about four to nine bids for the Yishun plot and five to 10 offers for the Sengkang land parcel. BT understands that some developers may be put off from bidding for the EC sites due to more admin work involved, including checking buyers’ eligibility criteria.
The last EC project was Far East Organization’s La Casa in Woodlands, which was released at an average price of about $380 psf in May 2005 and completed in 2008.
Last year’s sharp recovery in 99-year leasehold mass-market private condo prices has revived the need for ECs, say analysts. ‘If the price gap between the new EC projects and new 99-year private condos in the same location is attractive enough, homebuyer demand for ECs will surely return,’ says CB Richard Ellis executive director Li Hiaw Ho.
Sim Lian Group executive director Diana Kuik says the $10,000 monthly household income cap for new EC buyers will serve to rein in land bids. An overly aggressive successful bidder may carve out a higher proportion of small units to try and achieve higher psf selling prices, she reckons.
While some developers may not be be pleased with the stipulation favouring first-time buyers, Knight Frank’s Mr Ow says: ‘We don’t see a great impact on marketability of the EC projects as recent BTO projects have seen overwhelming response.’
ECs were minted in 1995 to cater to the ’sandwich class’ who aspire to own private condos but find themselves priced out. The $10,000 income ceiling for new EC buyers is above the $8,000 for those seeking to buy new public housing flats from HDB.
Source: Business Times, 15 Jan 2010
Two executive condominium (EC) sites, one in Sengkang and the other in Yishun, will come with a twist when they are launched today. The winning tenderers will have to set aside 95 per cent of units in the initial month of sale for first-time home buyers. That is, those that have yet to receive a housing subsidy.
Market watchers say that the strategy is aimed at meeting strong demand for HDB flats from this segment of late.
ECs are a hybrid of public and private housing. They are strata-titled apartments with facilities comparable to private condos. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing; but these are completely removed after 10 years.
Knight Frank managing director (residential services) Peter Ow says that setting aside 95 per cent of a new EC project for first-timers will help ease their difficulty in purchasing a home.
‘Looking at how recent Built-To-Order HDB flats are oversubscribed and an expected continued recovery in the private residential market, ECs – a hybrid fulfilling the difference in these two property types – are expected to be met with overwhelming buying interest,’ he added.
‘Ironically, though, first-time buyers may have less purchasing power . .. and would thus have to be prudent and ensure they will be able to continually finance their purchase, even if they are given the privilege to buy,’ he added.
Of the two 99-year leasehold plots on offer, the Sengkang plot, near Buangkok MRT Station, will be more highly sought after and hence fetch a higher unit land price, say property consultants. It can be developed into 520 apartments and is just one MRT stop away from Compass Point mall.
The Yishun plot, which can yield about 385 units, is not within walking distance of an MRT station, although it could make for a conducive living environment. It is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir. The Yishun plot is next to a completed EC project, Lilydale.
Property consultants that BT polled predict that land bids for the more popular Sengkang plot would range from about $190 to $300 per square foot per plot ratio (psf ppr), with target average selling prices of $550-600 psf.
Colliers International director Tay Huey Ying says that three EC projects in the north-east region – Park Green, The Rivervale and The Florida – sold at average prices of $525-546 psf – in Q4 2009.
For the Yishun plot, consultants expect bids of around $150-210 psf ppr with average selling prices of $500-580 psf. Units in Lilydale next door transacted at $494 psf on average last quarter, notes Ms Tay.
Real estate lecturer Nicholas Mak predicts about four to nine bids for the Yishun plot and five to 10 offers for the Sengkang land parcel. BT understands that some developers may be put off from bidding for the EC sites due to more admin work involved, including checking buyers’ eligibility criteria.
The last EC project was Far East Organization’s La Casa in Woodlands, which was released at an average price of about $380 psf in May 2005 and completed in 2008.
Last year’s sharp recovery in 99-year leasehold mass-market private condo prices has revived the need for ECs, say analysts. ‘If the price gap between the new EC projects and new 99-year private condos in the same location is attractive enough, homebuyer demand for ECs will surely return,’ says CB Richard Ellis executive director Li Hiaw Ho.
Sim Lian Group executive director Diana Kuik says the $10,000 monthly household income cap for new EC buyers will serve to rein in land bids. An overly aggressive successful bidder may carve out a higher proportion of small units to try and achieve higher psf selling prices, she reckons.
While some developers may not be be pleased with the stipulation favouring first-time buyers, Knight Frank’s Mr Ow says: ‘We don’t see a great impact on marketability of the EC projects as recent BTO projects have seen overwhelming response.’
ECs were minted in 1995 to cater to the ’sandwich class’ who aspire to own private condos but find themselves priced out. The $10,000 income ceiling for new EC buyers is above the $8,000 for those seeking to buy new public housing flats from HDB.
Source: Business Times, 15 Jan 2010
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