It plans 680-unit project: 60% 4-room flats; 25% 3-room; the rest 5-room
SIM Lian Land, which emerged as the highest bidder for a site in Tampines designated for public housing under the Design, Build and Sell Scheme (DBSS), plans to build about 680 flats on the plot if awarded the site.
'About 60 per cent of the units will be four-room flats, another 25 per cent will be three-room flats and the remaining 15 per cent will comprise five-room flats,' Sim Lian Group executive director Diana Kuik told BT yesterday.
Sim Lian's top bid of about $178.2 million works out to about $261 per square foot of potential gross floor area. The tender drew five bids.
Sim Lian's price was about 22 per cent higher than the next highest offer of $213.62 per square foot per plot ratio (psf ppr) by Qingdao Construction (Singapore). A joint venture between Hoi Hup Realty and Sunway Developments offered about $205 psf ppr. Realty Consortium (a unit of Koh Brothers) bid $200.91 psf ppr.
The lowest offer of $110 million or $161.20 psf ppr was from Ho Lee Group.
The site will be sold on 103-year leasehold tenure inclusive of a four-year construction period.
DBSS gives developers an opportunity to design, develop, price and sell HDB flats to buyers who have to meet criteria set by the Housing & Development Board, including a monthly household income ceiling of $8,000.
The plot is next to Singapore's first DBSS project, The Premiere@Tampines, which was also developed by Sim Lian. That is fully sold.
As for the latest DBSS plot, Sim Lian hopes to launch the project around the third quarter of next year, says Ms Kuik.
In March this year, the group clinched a 99-year leasehold condo site at Tampines Ave 1/Ave 10, facing Bedok Reservoir, at a state tender.
It plans to build a 696-unit project to be named Waterview on this plot, with the majority of units being two and three-bedroom apartments. 'We'll probably launch the project around Q4 this year,' said Ms Kuik. Sim Lian paid $302 million or $421 psf ppr for the site.
Sim Lian also has available 62 units at its Clover By the Park condo in Bishan, which is still under construction. Most of these units are three and four-bedders and are priced in the high-$900 to $1,000 psf range. The 39-storey, 99-year leasehold project has a total of 616 units. It was released in June 2008.
Source: Business Times, 4 Aug 2010
Showing posts with label Tender. Show all posts
Showing posts with label Tender. Show all posts
Wednesday, August 4, 2010
Sim Lian puts in record bid for DBSS site
Developer's $178m offer for Tampines plot tops 4 others
SIM Lian Land has put in what is likely to be a record bid for a design, build and sell scheme (DBSS) plot amid buoyant prices in the Housing Board market.
It topped the tender for a Tampines Avenue 5 site, released under HDB's DBSS, with a higher-than-expected bid of $178.13 million, or $261 per sq ft per plot ratio (psf ppr).
The offer was 22 per cent ahead of the second highest bid of $145.77 million, or $213.6 psf ppr, from China-based Qingdao Construction (Singapore).
In third place was joint venture Hoi Hup Realty and Sunway Developments' $139.9 million, or $205 psf ppr.
The plot attracted five offers, and construction firm Ho Lee Group came last with its offer of $110 million, or $161 psf ppr.
According to Ngee Ann Polytechnic real estate lecturer Nicholas Mak, Sim Lian's bid sets a new land price record for a DBSS site and breaks the previous high of $237 psf ppr set in February 2008 for a Bishan site. He had expected the tender to draw up to seven bidders with offers of between $160 and $200 psf ppr.
At $261 psf ppr, Sim Lian will have to sell three-room flats for $380,000 to $400,000, and four-room flats for $530,000 to $550,000, said Mr Mak.
Five-room units would have to be pitched at between $640,000 and $670,000.
Sim Lian executive director Diana Kuik said the developer planned to build 680 homes on the Tampines site. She said the bulk of the units - 60 per cent - will be four-room flats. Three-room flats will account for 25 per cent of the total, while five-room units will make up the remaining 15 per cent.
'Tampines is an extremely mature estate and demand is very strong for new flats,' said Ms Kuik.
The Tampines site has a maximum allowable gross floor area of 63,395 sq m, including 1,060 sq m for social and commercial facilities. It is adjacent to Singapore's first DBSS project, The Premiere@Tampines, also developed by Sim Lian, which placed a bid of $82.22 million, or $113.67 psf ppr, in January 2006.
Response then was overwhelming and saw the pilot project almost five times oversubscribed. The five-room flats eventually went for $308,000 to $450,000.
Market watchers suggest Sim Lian's aggressive bid may also be because it is better able to control costs as it has its own construction arm.
Under DBSS, private developers can design, build and sell HDB flats directly to buyers, but they have to set aside 95 per cent of the flats for first-time buyers.
Source: Straits Times, 4 Aug 2010
SIM Lian Land has put in what is likely to be a record bid for a design, build and sell scheme (DBSS) plot amid buoyant prices in the Housing Board market.
It topped the tender for a Tampines Avenue 5 site, released under HDB's DBSS, with a higher-than-expected bid of $178.13 million, or $261 per sq ft per plot ratio (psf ppr).
The offer was 22 per cent ahead of the second highest bid of $145.77 million, or $213.6 psf ppr, from China-based Qingdao Construction (Singapore).
In third place was joint venture Hoi Hup Realty and Sunway Developments' $139.9 million, or $205 psf ppr.
The plot attracted five offers, and construction firm Ho Lee Group came last with its offer of $110 million, or $161 psf ppr.
According to Ngee Ann Polytechnic real estate lecturer Nicholas Mak, Sim Lian's bid sets a new land price record for a DBSS site and breaks the previous high of $237 psf ppr set in February 2008 for a Bishan site. He had expected the tender to draw up to seven bidders with offers of between $160 and $200 psf ppr.
At $261 psf ppr, Sim Lian will have to sell three-room flats for $380,000 to $400,000, and four-room flats for $530,000 to $550,000, said Mr Mak.
Five-room units would have to be pitched at between $640,000 and $670,000.
Sim Lian executive director Diana Kuik said the developer planned to build 680 homes on the Tampines site. She said the bulk of the units - 60 per cent - will be four-room flats. Three-room flats will account for 25 per cent of the total, while five-room units will make up the remaining 15 per cent.
'Tampines is an extremely mature estate and demand is very strong for new flats,' said Ms Kuik.
The Tampines site has a maximum allowable gross floor area of 63,395 sq m, including 1,060 sq m for social and commercial facilities. It is adjacent to Singapore's first DBSS project, The Premiere@Tampines, also developed by Sim Lian, which placed a bid of $82.22 million, or $113.67 psf ppr, in January 2006.
Response then was overwhelming and saw the pilot project almost five times oversubscribed. The five-room flats eventually went for $308,000 to $450,000.
Market watchers suggest Sim Lian's aggressive bid may also be because it is better able to control costs as it has its own construction arm.
Under DBSS, private developers can design, build and sell HDB flats directly to buyers, but they have to set aside 95 per cent of the flats for first-time buyers.
Source: Straits Times, 4 Aug 2010
Saturday, July 31, 2010
Tanjong Pagar site expected to fetch over $1b
THE landscape around Tanjong Pagar MRT Station is set to be transformed over the next few years when a new development is built, rising to about 60 storeys.
The project, opposite International Plaza, will be built on a 'white' site launched by the Urban Redevelopment Authority (URA) yesterday and which is expected to fetch over $1 billion.
The 99-year leasehold site can generate nearly 1.7 million square feet maximum gross floor area (GFA), of which at least 60 per cent must be for offices and another 10 per cent for hotel use. Most market watchers expect the successful developer to put the balance 30 per cent GFA to residential use, cashing in on strong demand for inner-city apartments. Sales of apartments will help part-finance the development, say property consultants.
The apartments are expected to be built on the 1.5 hectare site's front portion (facing Wallich Street and Maxwell Chambers), which can have a maximum height of 280 metres above mean sea level (AMSL). This is currently the maximum height control allowed in Singapore and will optimise views of the apartments.
Caveats of new residential launches in the vicinity such as Altez and 76 Shenton range from $1,900 to $2,300 psf, from sales in the past six months, says CB Richard Ellis executive director Li Hiaw Ho.
Cushman & Wakefield Singapore managing director Donald Han estimates the residential component can generate between 400 and 540 apartments, assuming an average unit size of 1,200 sq ft and 900 sq ft respectively.
The project is expected to generate about 846,000 sq ft net lettable area of offices - based on the minimum 60 per cent office component stipulated, says CBRE.
As at the second quarter of this year, the average monthly rental of premium-grade office space in the Tanjong Pagar area was about $6.80 psf, compared with $8.37 psf in the Marina Bay area. During the office market peak in Q2/Q3 2008, the figures were $12.50 psf and $19 psf respectively.
'Office rents have bottomed and the overall pipeline supply will taper off after 2012. Hence the development will benefit from an upswing in office rents, barring any slowdown or decline in the major economies,' says Chua Chor Hoon, head of Southeast Asia research at DTZ.
Cushman's Mr Han also observed that on the back of strong take-up for new office projects, confidence and appetite for commercial-dominated developments in the financial district is slowly building up among developers.
He estimates that the project's minimum hotel component - 10 per cent of GFA - would be enough for a 315 to 320-room hotel.
DTZ's Ms Chua expects the site to draw only a handful of bidders, mainly bigger developers experienced with office projects. Mr Han predicts 4-6 bids, most of them in the $650-$720 per square foot per plot ratio (psf ppr) range. This range of unit land price works out to absolute land bids of about $1.1 billion-$1.2 billion.
Some analysts reckon bids could be pushed even higher, to around $800 psf ppr or $1.4 billion.
'Strong interest is expected from the 'usual suspects' of listed developers and foreign funds either individually or on a joint- venture basis. As this is a big-ticket site, we expect participation by foreign developers like Hongkong Land and Cheung Kong,' says Mr Han.
While a chunk of the site has a maximum building height of 280 metres AMSL, the rear portion (facing Peck Seah Street) can be built up to 200 metres AMSL. Part of the site (mostly above the MRT station box) has a maximum six-storey height.
Analysts say the project will contribute to the rejuvenation of the Tanjong Pagar area and inject new office space in the old CBD - helping to offset some of the loss of stock from the conversion of ageing office blocks into apartments.
The Tanjong Pagar site is being offered under the Government's Confirmed List for the second half of 2010. Its tender will close on Nov 16. 'Selection of the successful tenderer will be based on the tendered land price only,' URA said.
Source: Business Times, 31 Jul 2010
The project, opposite International Plaza, will be built on a 'white' site launched by the Urban Redevelopment Authority (URA) yesterday and which is expected to fetch over $1 billion.
The 99-year leasehold site can generate nearly 1.7 million square feet maximum gross floor area (GFA), of which at least 60 per cent must be for offices and another 10 per cent for hotel use. Most market watchers expect the successful developer to put the balance 30 per cent GFA to residential use, cashing in on strong demand for inner-city apartments. Sales of apartments will help part-finance the development, say property consultants.
The apartments are expected to be built on the 1.5 hectare site's front portion (facing Wallich Street and Maxwell Chambers), which can have a maximum height of 280 metres above mean sea level (AMSL). This is currently the maximum height control allowed in Singapore and will optimise views of the apartments.
Caveats of new residential launches in the vicinity such as Altez and 76 Shenton range from $1,900 to $2,300 psf, from sales in the past six months, says CB Richard Ellis executive director Li Hiaw Ho.
Cushman & Wakefield Singapore managing director Donald Han estimates the residential component can generate between 400 and 540 apartments, assuming an average unit size of 1,200 sq ft and 900 sq ft respectively.
The project is expected to generate about 846,000 sq ft net lettable area of offices - based on the minimum 60 per cent office component stipulated, says CBRE.
As at the second quarter of this year, the average monthly rental of premium-grade office space in the Tanjong Pagar area was about $6.80 psf, compared with $8.37 psf in the Marina Bay area. During the office market peak in Q2/Q3 2008, the figures were $12.50 psf and $19 psf respectively.
'Office rents have bottomed and the overall pipeline supply will taper off after 2012. Hence the development will benefit from an upswing in office rents, barring any slowdown or decline in the major economies,' says Chua Chor Hoon, head of Southeast Asia research at DTZ.
Cushman's Mr Han also observed that on the back of strong take-up for new office projects, confidence and appetite for commercial-dominated developments in the financial district is slowly building up among developers.
He estimates that the project's minimum hotel component - 10 per cent of GFA - would be enough for a 315 to 320-room hotel.
DTZ's Ms Chua expects the site to draw only a handful of bidders, mainly bigger developers experienced with office projects. Mr Han predicts 4-6 bids, most of them in the $650-$720 per square foot per plot ratio (psf ppr) range. This range of unit land price works out to absolute land bids of about $1.1 billion-$1.2 billion.
Some analysts reckon bids could be pushed even higher, to around $800 psf ppr or $1.4 billion.
'Strong interest is expected from the 'usual suspects' of listed developers and foreign funds either individually or on a joint- venture basis. As this is a big-ticket site, we expect participation by foreign developers like Hongkong Land and Cheung Kong,' says Mr Han.
While a chunk of the site has a maximum building height of 280 metres AMSL, the rear portion (facing Peck Seah Street) can be built up to 200 metres AMSL. Part of the site (mostly above the MRT station box) has a maximum six-storey height.
Analysts say the project will contribute to the rejuvenation of the Tanjong Pagar area and inject new office space in the old CBD - helping to offset some of the loss of stock from the conversion of ageing office blocks into apartments.
The Tanjong Pagar site is being offered under the Government's Confirmed List for the second half of 2010. Its tender will close on Nov 16. 'Selection of the successful tenderer will be based on the tendered land price only,' URA said.
Source: Business Times, 31 Jul 2010
Multi-purpose site beside Tanjong Pagar station up for tender
A PRIME multi-purpose site in the Central Business District has been put up for tender.
The 1.5ha plot at the corner of Peck Seah and Choon Guan streets and next to Tanjong Pagar MRT station was launched yesterday as a confirmed list site.
The development will have a gross floor area of 157,744 sq m with at least 60 per cent earmarked for offices and a minimum of 10 per cent for hotel-related use.
The remaining area can be used for commercial, hotel or residential purposes, said the Urban Redevelopment Authority (URA) yesterday.
The 99-year leasehold site could yield an estimated 490 apartments, 315 hotel rooms and 102,380 sq m of commercial space.
It could reach 280m above sea level, commanding panoramic views of the city skyline across the CBD to Marina Bay and Chinatown, the URA said.
An underground pedestrian network will link the site to Capital Tower and 8 Shenton Way.
Executive director Li Hiaw Ho of CBRE Research said the development will tower over others in the vicinity and change the landscape of the Tanjong Pagar micro-market, hastening the area's pace of rejuvenation.
Mr Li said that with inner-city living growing in popularity over recent years, the successful tenderer would be tempted to utilise the remaining 30 per cent of floor space for flats.
Caveats lodged in the past six months from new launches at Altez and 76 Shenton ranged from $1,900 to $2,300 per sq ft (psf) while the completed Icon project has had recent resale transactions from $1,600 to $1,700 psf, CBRE Research said.
Knight Frank consultancy and research manager Ong Kah Seng expects 'keen interest' and about five bids for the prime site.
He also highlighted the attractiveness of the Tanjong Pagar area, where 'prime commercial area is complemented by a variety of lifestyle amenities and entertainment hangouts'.
Mr Ong added that with the office market in early recovery, this presents the best opportunity to develop or invest, as rents and prices are still attractive and economic fundamentals are in sight.
'Developers also have better access to financing compared to during an economic downturn,' he added.
The site, which can take up to seven years to be fully developed, might also appeal to developers who prefer a cautious stance as they would be able to adjust development plans according to prevailing market conditions, Mr Ong added.
The tender, which is part of the Government's land sales programme, closes on Nov 16.
Source: Straits Times, 31 Jul 2010
The 1.5ha plot at the corner of Peck Seah and Choon Guan streets and next to Tanjong Pagar MRT station was launched yesterday as a confirmed list site.
The development will have a gross floor area of 157,744 sq m with at least 60 per cent earmarked for offices and a minimum of 10 per cent for hotel-related use.
The remaining area can be used for commercial, hotel or residential purposes, said the Urban Redevelopment Authority (URA) yesterday.
The 99-year leasehold site could yield an estimated 490 apartments, 315 hotel rooms and 102,380 sq m of commercial space.
It could reach 280m above sea level, commanding panoramic views of the city skyline across the CBD to Marina Bay and Chinatown, the URA said.
An underground pedestrian network will link the site to Capital Tower and 8 Shenton Way.
Executive director Li Hiaw Ho of CBRE Research said the development will tower over others in the vicinity and change the landscape of the Tanjong Pagar micro-market, hastening the area's pace of rejuvenation.
Mr Li said that with inner-city living growing in popularity over recent years, the successful tenderer would be tempted to utilise the remaining 30 per cent of floor space for flats.
Caveats lodged in the past six months from new launches at Altez and 76 Shenton ranged from $1,900 to $2,300 per sq ft (psf) while the completed Icon project has had recent resale transactions from $1,600 to $1,700 psf, CBRE Research said.
Knight Frank consultancy and research manager Ong Kah Seng expects 'keen interest' and about five bids for the prime site.
He also highlighted the attractiveness of the Tanjong Pagar area, where 'prime commercial area is complemented by a variety of lifestyle amenities and entertainment hangouts'.
Mr Ong added that with the office market in early recovery, this presents the best opportunity to develop or invest, as rents and prices are still attractive and economic fundamentals are in sight.
'Developers also have better access to financing compared to during an economic downturn,' he added.
The site, which can take up to seven years to be fully developed, might also appeal to developers who prefer a cautious stance as they would be able to adjust development plans according to prevailing market conditions, Mr Ong added.
The tender, which is part of the Government's land sales programme, closes on Nov 16.
Source: Straits Times, 31 Jul 2010
Wednesday, July 28, 2010
Just two bids for one-north office site
A TENDER for a large high-rise commercial site in the 200ha innovation and research hub one-north has attracted just two bidders.
Ho Bee Developments put in the top bid of $410.99 million or $342.20 per sq ft per plot ratio (psf ppr).
That is about 7 per cent above the second highest bid of $384 million or $319.80 psf ppr from Mapletree Trustee.
Ho Bee's general manager of marketing and business development, Mr Chong Hock Chang, said its plan is to rent out the office units for recurring income, and it is looking at achieving office rents of $5 psf.
'We believe we can build an iconic building on this landmark site,' he said.
The 99-year leasehold site has been on the Government's reserve list of sites since April 2008. A tender was finally triggered in May when Mapletree committed to a minimum bid of $320 million, or $266 psf ppr, which the Government found acceptable.
The site of about 1.8ha is located at the junction of North Buona Vista Road and Commonwealth Avenue West and is near the Buona Vista MRT station. It has a
potential yield of 111,565 sq m, with 2,000 sq m being set aside for retail use.
JTC said the building will provide office space outside the Central Business District for the business support companies of the research institutes at one-north.
Cushman & Wakefield managing director Donald Han said the bids were within the expected range.
The low level of interest is due to the huge price sum involved, he added.
Also, 'as an office product, it is untested in the area, which is predominantly industrial in nature', he said.
CBRE Research said the development cost for a predominantly office tower is about $900 psf, based on the top bid.
Just under 1 million sq ft of net lettable area of commercial space could be developed on this parcel, said its executive director Li Hiaw Ho.
'This would facilitate the expansion of research and development functions at one-north and serve as an alternative source of office supply post-2013 in the Buona Vista sub-regional centre,' he said.
Mr Han said current rents in the area are about $3.80 psf to $4.50 psf.
As office rents have bottomed out in the second quarter, they are expected to rise in time. 'The rental yield would therefore be in excess of 5 per cent,' said Mr Han.
Source: Straits Times, 28 Jul 2010
Ho Bee Developments put in the top bid of $410.99 million or $342.20 per sq ft per plot ratio (psf ppr).
That is about 7 per cent above the second highest bid of $384 million or $319.80 psf ppr from Mapletree Trustee.
Ho Bee's general manager of marketing and business development, Mr Chong Hock Chang, said its plan is to rent out the office units for recurring income, and it is looking at achieving office rents of $5 psf.
'We believe we can build an iconic building on this landmark site,' he said.
The 99-year leasehold site has been on the Government's reserve list of sites since April 2008. A tender was finally triggered in May when Mapletree committed to a minimum bid of $320 million, or $266 psf ppr, which the Government found acceptable.
The site of about 1.8ha is located at the junction of North Buona Vista Road and Commonwealth Avenue West and is near the Buona Vista MRT station. It has a
potential yield of 111,565 sq m, with 2,000 sq m being set aside for retail use.
JTC said the building will provide office space outside the Central Business District for the business support companies of the research institutes at one-north.
Cushman & Wakefield managing director Donald Han said the bids were within the expected range.
The low level of interest is due to the huge price sum involved, he added.
Also, 'as an office product, it is untested in the area, which is predominantly industrial in nature', he said.
CBRE Research said the development cost for a predominantly office tower is about $900 psf, based on the top bid.
Just under 1 million sq ft of net lettable area of commercial space could be developed on this parcel, said its executive director Li Hiaw Ho.
'This would facilitate the expansion of research and development functions at one-north and serve as an alternative source of office supply post-2013 in the Buona Vista sub-regional centre,' he said.
Mr Han said current rents in the area are about $3.80 psf to $4.50 psf.
As office rents have bottomed out in the second quarter, they are expected to rise in time. 'The rental yield would therefore be in excess of 5 per cent,' said Mr Han.
Source: Straits Times, 28 Jul 2010
Ho Bee Investment puts in top bid for Buona Vista site
HO Bee Investment is planning to invest about $1 billion to develop a commercial project at North Buona Vista Drive.
The company told BT this after it submitted the top bid for a 99-year leasehold commercial plot located in the one-north research area yesterday.
The tender for the 1.8 hectare site attracted two bids. Ho Bee's was $410.99 million, which works out to $342 per sq ft per plot ration (psf ppr).
The second bid came from Mapletree Investments, at $384 million or $320 psf ppr.
The site has a maximum allowable gross floor area (GFA) of 1.2 million sq ft. Ho Bee hopes to set aside some 1-2 per cent of space in the commercial development for retail shops. It is also exploring the possibility of having service apartments within the development.
The site has a good size for creating 'a landmark building in a very attractive location', Ho Bee said. It plans to lease the development out for recurring income when it is ready in about four years' time.
Market watchers had expected demand for the site to be lukewarm given its large size, which would involve a huge capital commitment.
But the site has other attractions: it is near Buona Vista MRT Station and lies within a growing research cluster for the biomedical, infocommunication and media industries.
CB Richard Ellis Research executive director Li Hiaw Ho believes the site can yield a net lettable commercial area of just under a million sq ft. 'This would facilitate the expansion of R&D functions at one-north and serve as an alternative source of office supply post- 2013 in the Buona Vista sub-regional centre.'
Sentiment in the commercial property market has picked up of late. Official figures show that office rents increased 1.1 per cent in the second quarter from a quarter ago. Prices of office space climbed 4.6 per cent.
There was also a net increase of 398,264 sq ft in office space demand in the second quarter.
Source: Business Times, 28 Jul 2010
The company told BT this after it submitted the top bid for a 99-year leasehold commercial plot located in the one-north research area yesterday.
The tender for the 1.8 hectare site attracted two bids. Ho Bee's was $410.99 million, which works out to $342 per sq ft per plot ration (psf ppr).
The second bid came from Mapletree Investments, at $384 million or $320 psf ppr.
The site has a maximum allowable gross floor area (GFA) of 1.2 million sq ft. Ho Bee hopes to set aside some 1-2 per cent of space in the commercial development for retail shops. It is also exploring the possibility of having service apartments within the development.
The site has a good size for creating 'a landmark building in a very attractive location', Ho Bee said. It plans to lease the development out for recurring income when it is ready in about four years' time.
Market watchers had expected demand for the site to be lukewarm given its large size, which would involve a huge capital commitment.
But the site has other attractions: it is near Buona Vista MRT Station and lies within a growing research cluster for the biomedical, infocommunication and media industries.
CB Richard Ellis Research executive director Li Hiaw Ho believes the site can yield a net lettable commercial area of just under a million sq ft. 'This would facilitate the expansion of R&D functions at one-north and serve as an alternative source of office supply post- 2013 in the Buona Vista sub-regional centre.'
Sentiment in the commercial property market has picked up of late. Official figures show that office rents increased 1.1 per cent in the second quarter from a quarter ago. Prices of office space climbed 4.6 per cent.
There was also a net increase of 398,264 sq ft in office space demand in the second quarter.
Source: Business Times, 28 Jul 2010
Monday, July 26, 2010
Chinese developers eye S'pore property
Cash-rich firms spot growth opportunity here as cooling steps take effect at home
CHINESE developers eager for a slice of the red-hot housing pie are nudging their way into Singapore's property scene.
Chinese developers bid for at least 10 out of the 15 residential land sites put up for tender in the Government Land Sales (GLS) programme for the first half of this year.
They have landed three plots and narrowly missed out with second-place bids on at least two other sites.
MCC Land and Qingjian Group are two of the most active, although lesser-known Ningbo Construction Group unsuccessfully bid for a private residential plot in Tampines Road in May.
Property experts say this might herald a growing trend as Chinese developers, cashed up and eager to mitigate cooling measures that could derail property prices in China, shift their focus to Singapore where prices are expected to keep rising.
Their aggressive bidding could also be due to their lack of a landbank compared with local developers, and that many of their initial bids had failed to top the tender, experts say.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'Singapore is preferred as it is seen as a stable and safe market.
'Chinese developers will probably expand their presence here and I won't be surprised if we see more mainland firms coming into the property market.'
DMG & Partners property analyst Brandon Lee said that as most of the Chinese firms started out in the construction business, progressing to property development was not surprising as the margins were much higher.
'There are also an increasing number of mainland Chinese buyers entering the market, making up about 15 per cent of total foreign buyers, so the Chinese developers might be hoping to target this segment,' he added.
MCC Land's first attempt at a GLS tender was in March, for an executive condo site near Buangkok MRT Station. It fell a fraction short, tendering 1.4 per cent below the top bid of $193.3 million.
But it won the day with a $127.8 million bid for a site at Yishun, also in March. Last month, the firm clinched a Sembawang Road/Canberra Drive site for $131.7 million.
MCC Land is part of the Chinese state-owned enterprise Metallurgical Corporation of China (MCC Group) - a Fortune 500 company listed on the Shanghai and Hong Kong bourses. It is involved in engineering, procurement and construction, mining and property development.
While MCC Land is a new entrant, MCC Group's local construction unit, China Jingye Engineering Corporation, has been doing business here for almost 14 years. It was the main contractor for Universal Studios at Resorts World Sentosa.
MCC Land managing director Tan Zhiyong said that it was a natural progression to branch out into property development as it expanded its footprint here.
Although the firm is mostly involved in the residential market, he does not rule out entering the commercial sector if the opportunity arises.
'We don't have a fixed goal in terms of what we want to accomplish... If a good opportunity arises, we will act but this also depends on how the market moves, the timing and the location of a site,' he said.
Mr Tan added that while he does not expect property prices here to increase as fast in the rest of the year as they did in the first half, he expects values to remain stable and so might bid for more sites.
The other main player - the Qingjian group - also began operations here as a contractor for HDB projects. It marked its first foray into property development in 2008 with Natura Loft - an HDB design, build and sell scheme in Bishan.
Qingdao Construction - part of the Qingjian Group - has since clinched a site next to Potong Pasir MRT station for $113.7 million. Its bid of $607 per sq ft per plot ratio was a record land price for the area and ahead of more established property players like Frasers Centrepoint, Far East Organization and Hong Leong Holdings.
Qingdao Construction director Zuo Haibin said Singapore's growing economy provided a stable investment platform. He hopes to at least double the size of the firm's development arm in the next year and has identified sites in the upcoming GLS programme the firm may bid for.
Source: Straits Times, 26 Jul 2010
CHINESE developers eager for a slice of the red-hot housing pie are nudging their way into Singapore's property scene.
Chinese developers bid for at least 10 out of the 15 residential land sites put up for tender in the Government Land Sales (GLS) programme for the first half of this year.
They have landed three plots and narrowly missed out with second-place bids on at least two other sites.
MCC Land and Qingjian Group are two of the most active, although lesser-known Ningbo Construction Group unsuccessfully bid for a private residential plot in Tampines Road in May.
Property experts say this might herald a growing trend as Chinese developers, cashed up and eager to mitigate cooling measures that could derail property prices in China, shift their focus to Singapore where prices are expected to keep rising.
Their aggressive bidding could also be due to their lack of a landbank compared with local developers, and that many of their initial bids had failed to top the tender, experts say.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'Singapore is preferred as it is seen as a stable and safe market.
'Chinese developers will probably expand their presence here and I won't be surprised if we see more mainland firms coming into the property market.'
DMG & Partners property analyst Brandon Lee said that as most of the Chinese firms started out in the construction business, progressing to property development was not surprising as the margins were much higher.
'There are also an increasing number of mainland Chinese buyers entering the market, making up about 15 per cent of total foreign buyers, so the Chinese developers might be hoping to target this segment,' he added.
MCC Land's first attempt at a GLS tender was in March, for an executive condo site near Buangkok MRT Station. It fell a fraction short, tendering 1.4 per cent below the top bid of $193.3 million.
But it won the day with a $127.8 million bid for a site at Yishun, also in March. Last month, the firm clinched a Sembawang Road/Canberra Drive site for $131.7 million.
MCC Land is part of the Chinese state-owned enterprise Metallurgical Corporation of China (MCC Group) - a Fortune 500 company listed on the Shanghai and Hong Kong bourses. It is involved in engineering, procurement and construction, mining and property development.
While MCC Land is a new entrant, MCC Group's local construction unit, China Jingye Engineering Corporation, has been doing business here for almost 14 years. It was the main contractor for Universal Studios at Resorts World Sentosa.
MCC Land managing director Tan Zhiyong said that it was a natural progression to branch out into property development as it expanded its footprint here.
Although the firm is mostly involved in the residential market, he does not rule out entering the commercial sector if the opportunity arises.
'We don't have a fixed goal in terms of what we want to accomplish... If a good opportunity arises, we will act but this also depends on how the market moves, the timing and the location of a site,' he said.
Mr Tan added that while he does not expect property prices here to increase as fast in the rest of the year as they did in the first half, he expects values to remain stable and so might bid for more sites.
The other main player - the Qingjian group - also began operations here as a contractor for HDB projects. It marked its first foray into property development in 2008 with Natura Loft - an HDB design, build and sell scheme in Bishan.
Qingdao Construction - part of the Qingjian Group - has since clinched a site next to Potong Pasir MRT station for $113.7 million. Its bid of $607 per sq ft per plot ratio was a record land price for the area and ahead of more established property players like Frasers Centrepoint, Far East Organization and Hong Leong Holdings.
Qingdao Construction director Zuo Haibin said Singapore's growing economy provided a stable investment platform. He hopes to at least double the size of the firm's development arm in the next year and has identified sites in the upcoming GLS programme the firm may bid for.
Source: Straits Times, 26 Jul 2010
Wednesday, July 21, 2010
Jalan Eunos and Buangkok sites for sale
DEVELOPERS have been invited to lodge bids for a 4.1ha residential site in Jalan Eunos.
The 99-year leasehold land parcel can yield 525 low-rise housing units and is permitted a maximum gross floor area of 57,766 sq m.
The developer can opt to build landed homes of up to three storeys on the site, which is near the Eunos flyover.
The sale tender was launched by the Government yesterday.
CBRE Research executive director Li Hiaw Ho said the site is likely to fetch a land price of $218 million to $249 million, or $350 to $400 per sq ft per plot ratio (psf ppr). He said a low-rise condo on the site can probably fetch $850 psf on average.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak expects the site to attract lower bids of $280 to $320 psf ppr.
'Developers may not want to bid very aggressively, given that there will be many sites coming up for sale,' he said.
Yesterday, the Urban Redevelopment Authority also made available another residential site for sale if developers show interest.
This 1.8ha site is at the junction of Buangkok Drive and Sengkang Central, and is near the Buangkok MRT station. With a maximum gross floor area of 55,027 sq m, it can yield 495 apartments.
In response to the strong demand for private homes - and the resulting demand for land from developers - the Government has placed a record 31 sites on its land sales programme for the second half of the year.
The tender for the Jalan Eunos site closes on Sept 7.
Source: Straits Times, 21 Jul 2010
The 99-year leasehold land parcel can yield 525 low-rise housing units and is permitted a maximum gross floor area of 57,766 sq m.
The developer can opt to build landed homes of up to three storeys on the site, which is near the Eunos flyover.
The sale tender was launched by the Government yesterday.
CBRE Research executive director Li Hiaw Ho said the site is likely to fetch a land price of $218 million to $249 million, or $350 to $400 per sq ft per plot ratio (psf ppr). He said a low-rise condo on the site can probably fetch $850 psf on average.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak expects the site to attract lower bids of $280 to $320 psf ppr.
'Developers may not want to bid very aggressively, given that there will be many sites coming up for sale,' he said.
Yesterday, the Urban Redevelopment Authority also made available another residential site for sale if developers show interest.
This 1.8ha site is at the junction of Buangkok Drive and Sengkang Central, and is near the Buangkok MRT station. With a maximum gross floor area of 55,027 sq m, it can yield 495 apartments.
In response to the strong demand for private homes - and the resulting demand for land from developers - the Government has placed a record 31 sites on its land sales programme for the second half of the year.
The tender for the Jalan Eunos site closes on Sept 7.
Source: Straits Times, 21 Jul 2010
Government releases two residential sites for tender
THE government has put a site at Jalan Eunos up for tender - the fourth residential plot from the confirmed list to be launched this month.
On top of this, it has made a plot on the reserve list at Buangkok Drive/Sengkang Central available for application. The two sites will add an estimated 1,020 units to the residential supply pipeline if they are sold.
The Urban Redevelopment Authority (URA) released details of the sites yesterday. The 99-year leasehold plot at Jalan Eunos is 4.1 hectares and can be developed into a condominium, or landed or strata landed housing project.
The site has a maximum permissible gross floor area (GFA) of 621,787 sq ft for a condominium project, potentially yielding 525 units.
It is next to the Pan-Island Expressway and some distance from the Eunos and Kembangan MRT stations. Nature lovers are likely to appreciate having Bedok Town Park and the Siglap Park Connector nearby.
Knight Frank consultancy and research manager Ong Kah Seng expects about five developers to show interest in the site. The winning bid could range from $380-420 per sq ft per plot ratio (psf ppr).
Interest for state land is 'expected to moderate in view of the substantial supply available' through the second-half 2010 government land sales (GLS) programme, Mr Ong said. Nevertheless, developers that need to replenish land banks are likely to 'remain open in acquiring sites with potential'.
CBRE Research executive director Li Hiaw Ho believes the site could draw bids of $350-400 psf ppr.
Over at Buangkok Drive, interested developers can start submitting applications for a 99-year leasehold 1.8 ha site. It has a maximum GFA of 592,305 sq ft and can accommodate an estimated 495 units.
The plot is near Buangkok MRT station. It is also not far from Punggol Park and several schools such as Nan Chiau High and North Vista Primary.
Knight Frank's Mr Ong expects 'modest interest' in this site, as two other plots for executive condominiums were launched in the vicinity in H1.
URA reiterated yesterday that the second-half GLS programme will have 18 residential sites on the confirmed list and another 13 on the reserve list, which can generate 13,905 units in all.
Later this month, URA will launch a confirmed list white site - at Peck Seah and Choon Guan streets - for sale.
Source: Business Times, 21 Jul 2010
On top of this, it has made a plot on the reserve list at Buangkok Drive/Sengkang Central available for application. The two sites will add an estimated 1,020 units to the residential supply pipeline if they are sold.
The Urban Redevelopment Authority (URA) released details of the sites yesterday. The 99-year leasehold plot at Jalan Eunos is 4.1 hectares and can be developed into a condominium, or landed or strata landed housing project.
The site has a maximum permissible gross floor area (GFA) of 621,787 sq ft for a condominium project, potentially yielding 525 units.
It is next to the Pan-Island Expressway and some distance from the Eunos and Kembangan MRT stations. Nature lovers are likely to appreciate having Bedok Town Park and the Siglap Park Connector nearby.
Knight Frank consultancy and research manager Ong Kah Seng expects about five developers to show interest in the site. The winning bid could range from $380-420 per sq ft per plot ratio (psf ppr).
Interest for state land is 'expected to moderate in view of the substantial supply available' through the second-half 2010 government land sales (GLS) programme, Mr Ong said. Nevertheless, developers that need to replenish land banks are likely to 'remain open in acquiring sites with potential'.
CBRE Research executive director Li Hiaw Ho believes the site could draw bids of $350-400 psf ppr.
Over at Buangkok Drive, interested developers can start submitting applications for a 99-year leasehold 1.8 ha site. It has a maximum GFA of 592,305 sq ft and can accommodate an estimated 495 units.
The plot is near Buangkok MRT station. It is also not far from Punggol Park and several schools such as Nan Chiau High and North Vista Primary.
Knight Frank's Mr Ong expects 'modest interest' in this site, as two other plots for executive condominiums were launched in the vicinity in H1.
URA reiterated yesterday that the second-half GLS programme will have 18 residential sites on the confirmed list and another 13 on the reserve list, which can generate 13,905 units in all.
Later this month, URA will launch a confirmed list white site - at Peck Seah and Choon Guan streets - for sale.
Source: Business Times, 21 Jul 2010
Tuesday, July 20, 2010
URA launches site in Kaki Bukit for tender
THE Urban Redevelopment Authority (URA) has launched a 3ha site at Kaki Bukit Avenue 4 for tender under the confirmed list.
The plot, with a 2.5 plot ratio, is being offered on 60-year-leasehold tenure and is designated for Business 2 use, which means it can be developed for various uses such as light and general industry, warehousing, utility or telecommunications.
The tender for the land parcel will close on Sept 14.
Colliers International director (industrial) Tan Boon Leong expects the site to fetch bids of $60-$70 per square foot of potential gross floor area, or $48.5 million to $56.5 million.
The unit land price is below the $105 per square foot per plot ratio (psf ppr) fetched for a 30-year-leasehold Business 2 plot at Kaki Bukit Road 2 sold by the government in August last year.
'The earlier site was better located, in the main thoroughfare of the Kaki Bukit industrial area. It was also much smaller at about one hectare and a lower plot ratio of 1.0, resulting in the gross floor area of 115,384 sq ft, compared with 807,833 sq ft for the latest plot. For these reasons, I expect the latest site to fetch a lower unit land price despite its longer leasehold tenure.'
Mr Tan also believes that the confirmed-list site at Kaki Bukit Avenue 4 will fetch lower bids than a 3.5ha Business 1 site at Ubi Road 1 that was launched for tender in June and whose tender will close on Aug 11. The 60-year-leasehold plot, with 2.5 plot ratio, may fetch bids of $80-$90 psf ppr, he forecasts.
'It enjoys a choice location, about 200-300 metres from Tai Seng MRT Station,' Mr Tan notes.
The Ubi site was released under the confirmed list of the government's first-half 2010 industrial land sales programme.
The second-half confirmed list has three sites. Besides the Kaki Bukit Avenue 4 plot which has just been released, a site at Yishun Street 23 and another plot at Old Toh Tuck Road will be launched for sale in August and October this year respectively. Both are zoned for Business 2 use.
In addition, the reserve list will offer seven industrial plots in locations such as Woodlands, Tuas View, Kaki Bukit, Ang Mo Kio, Pioneer Road North, Ubi and Serangoon North.
While the government releases sites on the confirmed list according to a pre-stated schedule, it launches sites on the reserve list only upon application by developers.
Source: Business Times, 20 Jul 2010
The plot, with a 2.5 plot ratio, is being offered on 60-year-leasehold tenure and is designated for Business 2 use, which means it can be developed for various uses such as light and general industry, warehousing, utility or telecommunications.
The tender for the land parcel will close on Sept 14.
Colliers International director (industrial) Tan Boon Leong expects the site to fetch bids of $60-$70 per square foot of potential gross floor area, or $48.5 million to $56.5 million.
The unit land price is below the $105 per square foot per plot ratio (psf ppr) fetched for a 30-year-leasehold Business 2 plot at Kaki Bukit Road 2 sold by the government in August last year.
'The earlier site was better located, in the main thoroughfare of the Kaki Bukit industrial area. It was also much smaller at about one hectare and a lower plot ratio of 1.0, resulting in the gross floor area of 115,384 sq ft, compared with 807,833 sq ft for the latest plot. For these reasons, I expect the latest site to fetch a lower unit land price despite its longer leasehold tenure.'
Mr Tan also believes that the confirmed-list site at Kaki Bukit Avenue 4 will fetch lower bids than a 3.5ha Business 1 site at Ubi Road 1 that was launched for tender in June and whose tender will close on Aug 11. The 60-year-leasehold plot, with 2.5 plot ratio, may fetch bids of $80-$90 psf ppr, he forecasts.
'It enjoys a choice location, about 200-300 metres from Tai Seng MRT Station,' Mr Tan notes.
The Ubi site was released under the confirmed list of the government's first-half 2010 industrial land sales programme.
The second-half confirmed list has three sites. Besides the Kaki Bukit Avenue 4 plot which has just been released, a site at Yishun Street 23 and another plot at Old Toh Tuck Road will be launched for sale in August and October this year respectively. Both are zoned for Business 2 use.
In addition, the reserve list will offer seven industrial plots in locations such as Woodlands, Tuas View, Kaki Bukit, Ang Mo Kio, Pioneer Road North, Ubi and Serangoon North.
While the government releases sites on the confirmed list according to a pre-stated schedule, it launches sites on the reserve list only upon application by developers.
Source: Business Times, 20 Jul 2010
Kaki Bukit industrial site launched for sale
An industrial site at Kaki Bukit Avenue 4 was launched for sale by public tender yesterday.
It’s one of three industrial sites scheduled to be sold under the Confirmed List in the second half of the government’s Industrial Land Sale Programme.
The Urban Redevelopment Authority said the land parcel at Kaki Bukit has a site area of about 3 hectares and has a maximum gross plot ratio of 2.5 with a lease period of 60 years.
It has been set aside for “Business 2″ development where the site can be developed for various functions like light and general industry, warehousing, utility or telecommunication. The tender will close on Sept 14.
Source: Today, 20 Jul 2010
It’s one of three industrial sites scheduled to be sold under the Confirmed List in the second half of the government’s Industrial Land Sale Programme.
The Urban Redevelopment Authority said the land parcel at Kaki Bukit has a site area of about 3 hectares and has a maximum gross plot ratio of 2.5 with a lease period of 60 years.
It has been set aside for “Business 2″ development where the site can be developed for various functions like light and general industry, warehousing, utility or telecommunication. The tender will close on Sept 14.
Source: Today, 20 Jul 2010
2 residential sites made available for sale by URA
Two more residential sites have been made available for sale by the Urban Redevelopment Authority (URA).
One of the sites, at Jalan Eunos, is launched for sale under the Confirmed List of the Government Land Sales (GLS) programme.
The other site located at Buangkok Drive and Sengkang Central is being made available for sale under the Reserve List.
A Reserve List site will be released for sale if a developer commits to putting in a minimum bid acceptable to the government.
Together, URA said both sites can potentially yield about 1,020 housing units and will provide developers and home buyers with more choices.
The two sites have a lease period of 99 years.
For the land parcel at Jalan Eunos, the site is about 4.1 hectares in size, with a maximum permissible gross floor area of 57,766 square metres.
The land parcel at Buangkok Drive and Sengkang Central, spanning 1.8 hectares, has a maximum permissible gross floor area of 55,027 square metres.
URA added that 20,175 units made available for the whole of 2010 under the Government Land Sales programme is the highest potential supply in the history of the GLS Programme.
Source: Channel News Asia, 20 Jul 2010
One of the sites, at Jalan Eunos, is launched for sale under the Confirmed List of the Government Land Sales (GLS) programme.
The other site located at Buangkok Drive and Sengkang Central is being made available for sale under the Reserve List.
A Reserve List site will be released for sale if a developer commits to putting in a minimum bid acceptable to the government.
Together, URA said both sites can potentially yield about 1,020 housing units and will provide developers and home buyers with more choices.
The two sites have a lease period of 99 years.
For the land parcel at Jalan Eunos, the site is about 4.1 hectares in size, with a maximum permissible gross floor area of 57,766 square metres.
The land parcel at Buangkok Drive and Sengkang Central, spanning 1.8 hectares, has a maximum permissible gross floor area of 55,027 square metres.
URA added that 20,175 units made available for the whole of 2010 under the Government Land Sales programme is the highest potential supply in the history of the GLS Programme.
Source: Channel News Asia, 20 Jul 2010
Monday, July 12, 2010
4 GB building strata units up for sale
Four strata titled units in the central business district have been put up for sale.
The four units occupy the top floors of GB Building, which is located at 143 Cecil Street.
The building comprises a 3-storey podium with a 23-storey office tower and is within two to three minutes’ walk from Tanjong Pagar MRT.
Sizes of the four units for sale range from 5,210 square feet to 5,500 square feet per floor, with a total strata area of some 21,500 square feet.
The units feature column-free space on all the typical office floors.
Located on the top floors of the building, the units command good views of the surroundings.
The indicative price is $30.18 million.
Based on the indicative price, this works out to $1,400 per square foot over strata floor area.
Property consultant CB Richard Ellis is the sole marketing agent for this private treaty sale.
Source: Channel News Asia, 12 Jul 2010
The four units occupy the top floors of GB Building, which is located at 143 Cecil Street.
The building comprises a 3-storey podium with a 23-storey office tower and is within two to three minutes’ walk from Tanjong Pagar MRT.
Sizes of the four units for sale range from 5,210 square feet to 5,500 square feet per floor, with a total strata area of some 21,500 square feet.
The units feature column-free space on all the typical office floors.
Located on the top floors of the building, the units command good views of the surroundings.
The indicative price is $30.18 million.
Based on the indicative price, this works out to $1,400 per square foot over strata floor area.
Property consultant CB Richard Ellis is the sole marketing agent for this private treaty sale.
Source: Channel News Asia, 12 Jul 2010
Friday, July 2, 2010
Three land plots put up for sale
99-year-lease sites located at Bedok, Yishun, Jurong West
(SINGAPORE) The government yesterday rolled out for sale three plots of land across the island, potentially adding some 1,300 units to the residential supply pipeline.
The blitz of sites followed the release of new data showing public and private home prices continuing their ascent in the second quarter.
The three sites at Bedok, Yishun and Jurong West are from the confirmed list under the government land sales (GLS) programme in the second half of the year. The Housing & Development Board (HDB) is handling the tenders.
Of these sites, the 99-year-lease one at New Upper Changi Road/Bedok North Drive attracted the most attention because it can house a commercial-residential development which will be integrated with a bus interchange.
The 2.49 hectare site is at Bedok Town Centre, next to Bedok MRT Station, and is surrounded by amenities such as supermarkets and a library. It has a maximum permissible gross floor area (GFA) of 938,157 square feet and can yield an estimated 475 dwelling units.
DTZ South-east Asia research head Chua Chor Hoon believes this plot is the most attractive of the three because it is centrally located in a well populated town. Also, 'there are only a few mixed sites available at the heart of HDB estates in the GLS programme', she said.
Cushman & Wakefield managing director Donald Han added that Bedok still lacks a major retail centre, so there could be fairly fierce bidding for the site, in the range of $500-580 per sq ft per plot ratio (psf ppr).
Colliers International investment sales executive director Ho Eng Joo expects to see bids coming in at $500-550 psf ppr. The tender for the site will close on Aug 17.
Another 99-year-lease land parcel at Miltonia Close can be developed into a strata housing community, or a condominium project with 345 units and a maximum permissible GFA of 406,875 sq ft. It lies at the fringe of Yishun Town Centre and is next to The Shaughnessy terrace house project.
While the plot may not be near an MRT station, its views of Lower Seletar Reservoir and Orchid Country Club's golf course may be a selling point, Mr Ho said. He projects bids of $300-350 psf ppr, while Mr Han is anticipating $270-320 psf ppr. The tender for this land parcel closes on Aug 24.
There was little hype over the third site at Jurong West Street 42, which is for an executive condominium project and is some distance from Lakeside MRT Station. It has a 99-year lease and can yield an estimated 460 units with a maximum permissible GFA of 542,988 sq ft.
Mr Ho and Mr Han expect to see bids of $230-280 and $250-300 psf ppr respectively. The tender for this site closes on Aug 12.
With more land parcels to be released, Mr Ho believes developers will be less aggressive in their bids. This month, the Urban Redevelopment Authority (URA) will be launching another two sites from the confirmed list, and making one from the reserve list available for application.
Mr Han added that the Miltonia Close and Jurong West sites just released by HDB are right next to other plots which can be launched for sale in future. The presence of such potential competition may make developers more price-sensitive when submitting their bids, he said.
The government has been ramping up land supply in the last few months to temper sentiment in the property market. Flash estimates yesterday showed private home prices rising 5.2 per cent in Q2 from Q1, and HDB resale flat prices increasing 3.8 per cent.
Source: Business Times, 2 Jul 2010
(SINGAPORE) The government yesterday rolled out for sale three plots of land across the island, potentially adding some 1,300 units to the residential supply pipeline.
The blitz of sites followed the release of new data showing public and private home prices continuing their ascent in the second quarter.
The three sites at Bedok, Yishun and Jurong West are from the confirmed list under the government land sales (GLS) programme in the second half of the year. The Housing & Development Board (HDB) is handling the tenders.
Of these sites, the 99-year-lease one at New Upper Changi Road/Bedok North Drive attracted the most attention because it can house a commercial-residential development which will be integrated with a bus interchange.
The 2.49 hectare site is at Bedok Town Centre, next to Bedok MRT Station, and is surrounded by amenities such as supermarkets and a library. It has a maximum permissible gross floor area (GFA) of 938,157 square feet and can yield an estimated 475 dwelling units.
DTZ South-east Asia research head Chua Chor Hoon believes this plot is the most attractive of the three because it is centrally located in a well populated town. Also, 'there are only a few mixed sites available at the heart of HDB estates in the GLS programme', she said.
Cushman & Wakefield managing director Donald Han added that Bedok still lacks a major retail centre, so there could be fairly fierce bidding for the site, in the range of $500-580 per sq ft per plot ratio (psf ppr).
Colliers International investment sales executive director Ho Eng Joo expects to see bids coming in at $500-550 psf ppr. The tender for the site will close on Aug 17.
Another 99-year-lease land parcel at Miltonia Close can be developed into a strata housing community, or a condominium project with 345 units and a maximum permissible GFA of 406,875 sq ft. It lies at the fringe of Yishun Town Centre and is next to The Shaughnessy terrace house project.
While the plot may not be near an MRT station, its views of Lower Seletar Reservoir and Orchid Country Club's golf course may be a selling point, Mr Ho said. He projects bids of $300-350 psf ppr, while Mr Han is anticipating $270-320 psf ppr. The tender for this land parcel closes on Aug 24.
There was little hype over the third site at Jurong West Street 42, which is for an executive condominium project and is some distance from Lakeside MRT Station. It has a 99-year lease and can yield an estimated 460 units with a maximum permissible GFA of 542,988 sq ft.
Mr Ho and Mr Han expect to see bids of $230-280 and $250-300 psf ppr respectively. The tender for this site closes on Aug 12.
With more land parcels to be released, Mr Ho believes developers will be less aggressive in their bids. This month, the Urban Redevelopment Authority (URA) will be launching another two sites from the confirmed list, and making one from the reserve list available for application.
Mr Han added that the Miltonia Close and Jurong West sites just released by HDB are right next to other plots which can be launched for sale in future. The presence of such potential competition may make developers more price-sensitive when submitting their bids, he said.
The government has been ramping up land supply in the last few months to temper sentiment in the property market. Flash estimates yesterday showed private home prices rising 5.2 per cent in Q2 from Q1, and HDB resale flat prices increasing 3.8 per cent.
Source: Business Times, 2 Jul 2010
Thursday, July 1, 2010
SLA to re-launch tender of Old Admiralty House site in Sembawang
The Singapore Land Authority (SLA) will re-launch a tender for the Old Admiralty House, part of the former British naval base in Sembawang.
SLA has terminated its contract with YESS Resorts and Country Club, which had converted the national monument into a country club.
YESS had taken over the premises in 2007 for a monthly rent of $40,000.
This was also the first time a preserved monument was tendered out by the SLA.
YESS had proposed to transform the place into the multi-purpose Admiral Country Club, with family-oriented leisure and entertainment activities.
SLA said it had to terminate the contract after non-payment of rent, despite repeated warnings.
But it agreed to allow all six of sub-tenants to remain until early-2011 on compassionate grounds.
SLA will take over operations of place until the re-launch of the tender.
Source: Channel News Asia, 1 Jul 2010
SLA has terminated its contract with YESS Resorts and Country Club, which had converted the national monument into a country club.
YESS had taken over the premises in 2007 for a monthly rent of $40,000.
This was also the first time a preserved monument was tendered out by the SLA.
YESS had proposed to transform the place into the multi-purpose Admiral Country Club, with family-oriented leisure and entertainment activities.
SLA said it had to terminate the contract after non-payment of rent, despite repeated warnings.
But it agreed to allow all six of sub-tenants to remain until early-2011 on compassionate grounds.
SLA will take over operations of place until the re-launch of the tender.
Source: Channel News Asia, 1 Jul 2010
Friday, June 25, 2010
Australian firm top bidder for Jurong site
Lend Lease's $748m offer more than double minimum expected bid
AUSTRALIA-BASED Lend Lease has topped a tender for a large mixed commercial, residential and hotel development site which is set to kick-start Jurong Lake District's planned transformation.
It lodged a higher-than-expected bid of $748.89 million, which works out to $649.6 per sq ft of gross floor area.
This is more than double the minimum expected bid of $350 million for the 99-year leasehold site, next to Jurong East MRT station.
The top bid came in just 2.8 per cent above the second bid of $728.8 million or $632 psf of gross floor area from CapitaLand Retail RECM's Energy Trustee.
Far East Organization and Frasers Centrepoint were third with a price of $677 million or $587.3 psf of gross floor area.
China-based Qingdao Construction was the lowest of the six bids with $418 million or $362.6 psf of gross floor area.
'Today's tender result shows that although the momentum in the land sales market appears to be decelerating, developers are still looking to acquire attractive development sites,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
Colliers International's director for research and advisory, Ms Tay Huey Ying, said the encouraging response is 'proof of the private sector's confidence in the Government's plans to develop Jurong Lake District into a major regional centre and leisure destination by the lake'.
When awarded, this tender will probably serve as a catalyst for more private sector developments in Jurong, 'thereby accelerating the attainment of the Government's vision for this new growth area, and helping to chart Singapore's next lap', added Ms Tay.
The 1.9ha site has a maximum gross floor area of 1.15 million sq ft. Thirty per cent of the gross floor area has to be set aside for office development.
Property experts believe the top bidder is likely to develop a retail mall using all or most of the other 70 per cent.
Said DTZ's head of South-east Asia research, Ms Chua Chor Hoon: 'This combination will make the best use of the site, which is the 'crown jewel' in Jurong Gateway (the planned commercial hub).
'There will be high footfall through the retail mall due to the integration of the development with the MRT station and connection to nearby developments through elevated walkways required by the Urban Redevelopment Authority.'
CBRE Research executive director Li Hiaw Ho estimates a gross development value of $2,200 psf to $2,400 psf for the retail mall and $1,000 psf to $1,200 psf for the office component, based on the top bid for an office and retail complex.
If apartments are built on the site, they could be launched at some $920 psf, said Mr Mak.
Plans for Jurong Lake District, covering 360ha - about the size of Marina Bay - will be implemented over 10 to 15 years, with two precincts. Jurong Gateway precinct will be the biggest commercial hub outside the city centre. Lakeside precinct is to be turned into a world-class leisure destination for residents and tourists.
Source: STraits Times, 25 Jun 2010
AUSTRALIA-BASED Lend Lease has topped a tender for a large mixed commercial, residential and hotel development site which is set to kick-start Jurong Lake District's planned transformation.
It lodged a higher-than-expected bid of $748.89 million, which works out to $649.6 per sq ft of gross floor area.
This is more than double the minimum expected bid of $350 million for the 99-year leasehold site, next to Jurong East MRT station.
The top bid came in just 2.8 per cent above the second bid of $728.8 million or $632 psf of gross floor area from CapitaLand Retail RECM's Energy Trustee.
Far East Organization and Frasers Centrepoint were third with a price of $677 million or $587.3 psf of gross floor area.
China-based Qingdao Construction was the lowest of the six bids with $418 million or $362.6 psf of gross floor area.
'Today's tender result shows that although the momentum in the land sales market appears to be decelerating, developers are still looking to acquire attractive development sites,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
Colliers International's director for research and advisory, Ms Tay Huey Ying, said the encouraging response is 'proof of the private sector's confidence in the Government's plans to develop Jurong Lake District into a major regional centre and leisure destination by the lake'.
When awarded, this tender will probably serve as a catalyst for more private sector developments in Jurong, 'thereby accelerating the attainment of the Government's vision for this new growth area, and helping to chart Singapore's next lap', added Ms Tay.
The 1.9ha site has a maximum gross floor area of 1.15 million sq ft. Thirty per cent of the gross floor area has to be set aside for office development.
Property experts believe the top bidder is likely to develop a retail mall using all or most of the other 70 per cent.
Said DTZ's head of South-east Asia research, Ms Chua Chor Hoon: 'This combination will make the best use of the site, which is the 'crown jewel' in Jurong Gateway (the planned commercial hub).
'There will be high footfall through the retail mall due to the integration of the development with the MRT station and connection to nearby developments through elevated walkways required by the Urban Redevelopment Authority.'
CBRE Research executive director Li Hiaw Ho estimates a gross development value of $2,200 psf to $2,400 psf for the retail mall and $1,000 psf to $1,200 psf for the office component, based on the top bid for an office and retail complex.
If apartments are built on the site, they could be launched at some $920 psf, said Mr Mak.
Plans for Jurong Lake District, covering 360ha - about the size of Marina Bay - will be implemented over 10 to 15 years, with two precincts. Jurong Gateway precinct will be the biggest commercial hub outside the city centre. Lakeside precinct is to be turned into a world-class leisure destination for residents and tourists.
Source: STraits Times, 25 Jun 2010
Aggressive bidding for Jurong white site
A mixed-use white site at Jurong Gateway Road garnered aggressive bidding from developers as its tender closed yesterday.
Australian property firm Lend Lease has put in the top bid of nearly $749 million – more than twice the $350-million trigger price for site. This price translates to about $650 per square foot per plot ratio.
The second-highest bid of about $729 million came from Energy Trustee, while Qingdao Construction put in the lowest bid of $418 million.
All in, there were six bids for the site put up for tender by the Urban Redevelopment Authority.
The 99-year leasehold site, located at Jurong Gateway Road, was made available for sale via the Government’s reserve list system since November 2008.
It has a maximum permissible gross floor area of some 107,000 square metres.
Source: Today, 25 Jun 2010
Australian property firm Lend Lease has put in the top bid of nearly $749 million – more than twice the $350-million trigger price for site. This price translates to about $650 per square foot per plot ratio.
The second-highest bid of about $729 million came from Energy Trustee, while Qingdao Construction put in the lowest bid of $418 million.
All in, there were six bids for the site put up for tender by the Urban Redevelopment Authority.
The 99-year leasehold site, located at Jurong Gateway Road, was made available for sale via the Government’s reserve list system since November 2008.
It has a maximum permissible gross floor area of some 107,000 square metres.
Source: Today, 25 Jun 2010
Thursday, June 24, 2010
Lend Lease puts in top bid of nearly S$749m for white site at Jurong
Australian property firm Lend Lease has put in the top bid of S$748.89 million for a mixed-use white site at Jurong Gateway Road.
The tender price translates to about S$650 per square foot per plot ratio.
The second highest bid of S$728.80 million came from Energy Trustee.
Qingdao Construction put in the lowest bid of S$418 million.
All in, there were six bids for the site put up for tender by the Urban Redevelopment Authority (URA).
The top bid was more than twice the minimum offer of S$350 million that had triggered the tender.
The site was made available for sale via the government’s Reserve List system.
The 99-year-leasehold site has a maximum permissible gross floor area of some 107,000 square metres.
Of that space, at least 30 percent must be set aside for office use. The remainder can be used for any one or more of the following uses: a) commercial (for example, office, retail and entertainment); b) hotel and c) residential.
CBRE Research believes that a retail mall will occupy 70 percent of the gross floor area.
Based on an office and retail complex, CBRE estimates a gross development value of S$2,200-S$2,400 psf for the retail mall and S$1,000-S$1,200 psf for the office component.
Source: Channel News Asia, 24 Jun 2010
The tender price translates to about S$650 per square foot per plot ratio.
The second highest bid of S$728.80 million came from Energy Trustee.
Qingdao Construction put in the lowest bid of S$418 million.
All in, there were six bids for the site put up for tender by the Urban Redevelopment Authority (URA).
The top bid was more than twice the minimum offer of S$350 million that had triggered the tender.
The site was made available for sale via the government’s Reserve List system.
The 99-year-leasehold site has a maximum permissible gross floor area of some 107,000 square metres.
Of that space, at least 30 percent must be set aside for office use. The remainder can be used for any one or more of the following uses: a) commercial (for example, office, retail and entertainment); b) hotel and c) residential.
CBRE Research believes that a retail mall will occupy 70 percent of the gross floor area.
Based on an office and retail complex, CBRE estimates a gross development value of S$2,200-S$2,400 psf for the retail mall and S$1,000-S$1,200 psf for the office component.
Source: Channel News Asia, 24 Jun 2010
Saturday, June 19, 2010
Far East, Frasers Centrepoint put in top bid for Yishun site
Duo's joint bid is 17% above the only other offer from GuocoLand for the condo plot
FAR East Organization and Frasers Centrepoint jointly submitted the higher of two bids for a condo site at Yishun at the close of a state tender yesterday.
The two developers bid $229.4 million, or $321 per sq ft (psf) of gross floor area, for the 99-year leasehold plot at the junction of Yishun Ave 2, Yishun Ave 7 and Canberra Drive.
Their bid was 17 per cent higher than the only other offer, which was from GuocoLand. GuocoLand offered $196 million or $274 psf of gross floor area.
Far East Organization and Frasers Centrepoint plan to build a 660-unit project on the site. The average size of the units will be about 1,000 sq ft, said a Frasers spokeswoman.
Analysts said the low level of interest in the site - just two bids - was one of the weakest responses to a state land tender in recent times. 'The site received a muted response probably because of its larger size,' said Leonard Tay, director of CBRE Research.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said developers may have been deterred by the large potential supply of new residential units due to come up in in Yishun and Sembawang.
Competition from this large supply means new projects will take longer to sell, Mr Mak said.
Upcoming supply in the area includes HDB flats - executive condominium units and flats under the design, build and sell scheme - and private condos that will go up on three sites sold by the government so far this year.
The latest site is not near Yishun station or many amenities, Mr Mak said: 'Therefore, the new project on this site may not be as popular with home-buyers, compared with other developments.'
Developers could also be conserving resources for state sites to be released in the second half of this year, analysts said.
The new Yishun project could break even around $600 psf and units could sell for $650 psf or higher, they said.
Data from CBRE Research shows that units in The Estuary were transacted at between $660 and $800 psf in March and April.
And in the resale market, units in adjacent Yishun Emerald and Yishun Sapphire went for $540-$630 psf from February to May.
Source: Business Times, 19 Jun 2010
FAR East Organization and Frasers Centrepoint jointly submitted the higher of two bids for a condo site at Yishun at the close of a state tender yesterday.
The two developers bid $229.4 million, or $321 per sq ft (psf) of gross floor area, for the 99-year leasehold plot at the junction of Yishun Ave 2, Yishun Ave 7 and Canberra Drive.
Their bid was 17 per cent higher than the only other offer, which was from GuocoLand. GuocoLand offered $196 million or $274 psf of gross floor area.
Far East Organization and Frasers Centrepoint plan to build a 660-unit project on the site. The average size of the units will be about 1,000 sq ft, said a Frasers spokeswoman.
Analysts said the low level of interest in the site - just two bids - was one of the weakest responses to a state land tender in recent times. 'The site received a muted response probably because of its larger size,' said Leonard Tay, director of CBRE Research.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said developers may have been deterred by the large potential supply of new residential units due to come up in in Yishun and Sembawang.
Competition from this large supply means new projects will take longer to sell, Mr Mak said.
Upcoming supply in the area includes HDB flats - executive condominium units and flats under the design, build and sell scheme - and private condos that will go up on three sites sold by the government so far this year.
The latest site is not near Yishun station or many amenities, Mr Mak said: 'Therefore, the new project on this site may not be as popular with home-buyers, compared with other developments.'
Developers could also be conserving resources for state sites to be released in the second half of this year, analysts said.
The new Yishun project could break even around $600 psf and units could sell for $650 psf or higher, they said.
Data from CBRE Research shows that units in The Estuary were transacted at between $660 and $800 psf in March and April.
And in the resale market, units in adjacent Yishun Emerald and Yishun Sapphire went for $540-$630 psf from February to May.
Source: Business Times, 19 Jun 2010
Yishun condo site tender gets only two bids
Likely reasons include site's location, cautious sentiments, say experts
A TENDER for a Yishun condominium site has attracted just two bidders, a far lower number than recent tenders, as market sentiment grows more cautious.
Far East Organization's Nam Hee Contractor and Frasers Centrepoint's FCL Topaz linked up to put in the top bid of $229.4 million, or $321 per sq ft per plot ratio (psf ppr).
Their bid is 17 per cent above the No.2 bid of $196 million, or $274 psf ppr, by GuocoLand's Perfect Eagle, and 66 per cent above an expected minimum bid price of $193 psf ppr.
The weak level of interest reflects more cautious sentiment among developers, though other factors such as the site's location also played a part.
DTZ South-east Asia research head Chua Chor Hoon said the more cautious market mood follows an easing of take-up in May and June.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said if new home sales moderate to a sustainable level from here on, developers will be less bullish when tendering for sites.
Ms Chua added that developers are also less desperate to build up their landbanks now that many managed to secure sites recently. They will be more selective as there will be many more government sites to choose from in the second half of the year.
Also, property experts said the Yishun site is not very attractive as it is not near an MRT station. The site is at the junction of Yishun Avenue 2, Yishun Avenue 7 and Canberra Drive. Frasers Centrepoint said it plans to build 660 units of about 1,000 sq ft on average.
Mr Mak added that the large potential supply of new residential properties in Yishun and Sembawang could have deterred some developers from bidding.
'Competition from the large supply of new homes in the Yishun and Sembawang would mean that new projects in these areas will take a longer time to sell,' he said.
While the tender response was relatively muted, the top bid is reasonably priced, reflecting a break-even cost of about $600 psf, said CBRE Research director Leonard Tay.
Units in this project will possibly sell above $650 psf, said Mr Tay.
Ms Chua estimates the break-even price at $610 to $630 psf and said the selling price could be at $680 to $720 psf.
For comparison, Mr Tay said that in March-April, units in The Estuary were transacted at $660 to $800 psf, and resale units in the adjacent Yishun Emerald and Yishun Sapphire went for $540 to $630 psf in February-May.
Source: Straits Times, 19 Jun 2010
A TENDER for a Yishun condominium site has attracted just two bidders, a far lower number than recent tenders, as market sentiment grows more cautious.
Far East Organization's Nam Hee Contractor and Frasers Centrepoint's FCL Topaz linked up to put in the top bid of $229.4 million, or $321 per sq ft per plot ratio (psf ppr).
Their bid is 17 per cent above the No.2 bid of $196 million, or $274 psf ppr, by GuocoLand's Perfect Eagle, and 66 per cent above an expected minimum bid price of $193 psf ppr.
The weak level of interest reflects more cautious sentiment among developers, though other factors such as the site's location also played a part.
DTZ South-east Asia research head Chua Chor Hoon said the more cautious market mood follows an easing of take-up in May and June.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said if new home sales moderate to a sustainable level from here on, developers will be less bullish when tendering for sites.
Ms Chua added that developers are also less desperate to build up their landbanks now that many managed to secure sites recently. They will be more selective as there will be many more government sites to choose from in the second half of the year.
Also, property experts said the Yishun site is not very attractive as it is not near an MRT station. The site is at the junction of Yishun Avenue 2, Yishun Avenue 7 and Canberra Drive. Frasers Centrepoint said it plans to build 660 units of about 1,000 sq ft on average.
Mr Mak added that the large potential supply of new residential properties in Yishun and Sembawang could have deterred some developers from bidding.
'Competition from the large supply of new homes in the Yishun and Sembawang would mean that new projects in these areas will take a longer time to sell,' he said.
While the tender response was relatively muted, the top bid is reasonably priced, reflecting a break-even cost of about $600 psf, said CBRE Research director Leonard Tay.
Units in this project will possibly sell above $650 psf, said Mr Tay.
Ms Chua estimates the break-even price at $610 to $630 psf and said the selling price could be at $680 to $720 psf.
For comparison, Mr Tay said that in March-April, units in The Estuary were transacted at $660 to $800 psf, and resale units in the adjacent Yishun Emerald and Yishun Sapphire went for $540 to $630 psf in February-May.
Source: Straits Times, 19 Jun 2010
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