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Thread: Keppel Land to launch new project in Sengkang

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    Default Keppel Land to launch new project in Sengkang

    http://www.straitstimes.com/Money/St...ry_692941.html

    Jul 21, 2011

    Keppel Land to launch new project in Sengkang


    PROPERTY firm Keppel Land will launch a new 620-unit Sengkang project by the end of this year, despite a cooling market.

    The announcement yesterday came on the day the company said its second-quarter net profit fell 65 per cent, largely due to the adoption of a new accounting policy.

    Earnings were $50.5 million for the three months up to June 30, down from $143.8 million a year earlier, while revenue was down 67 per cent to $104 million.

    The accounting change requires developers to recognise revenue and profit only on completion of certain projects. In the past, developers had smoothed out their revenue streams from projects, progressively recognising income over the contract period as certain milestones were met.

    Keppel also faced slower home sales in China after a raft of cooling measures. It sold 400 homes in China in the first half of this year, well under the 1,200 sold in the corresponding period last year, but the firm said it does not plan to cut prices.

    Group chief executive Kevin Wong said while cooling measures here and the impending supply from government land sales dampened Singapore's private home sales in the first six months of the year, property in selected suburban regions and near MRT stations will still attract interest.

    Healthy economic growth, a buoyant job market, ample liquidity, a low interest rate environment and the sustained influx of foreigners will also provide support for the residential market here, said chief financial officer Lim Kei Hin.

    The company sold 160 homes here in the first half of the year, with a total value of $245 million.

    Mr Wong said future investments - whether here or overseas, commercial or residential - will simply depend on opportunities. 'In China, we started doing some commercial developments. In the past, we had not gone in in any big way; we focused on residential because that was a market that we thought had the most profits.

    'And of course, now with all these cooling measures, there are locations and opportunities where commercial markets will become attractive.'

    Net profit for the six months fell 34 per cent to $134 million from a year earlier. Revenue rose 9 per cent to $462 million.

    Earnings per share for the half-year dipped to 9.1 cents from 14 cents last year, while net asset value per share was $2.72 as of June 30, down from $2.85 as of Dec 31.

    ESTHER TEO

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    Sengkang hasn't seen a launch near the met area in a while. So how much are they going to llaunch this one?

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    Guess would be 1K psf.. but oFcourse will depend on market sentiments.. things not looking too bright for developers these days..and by year end might be even worse..

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    Quote Originally Posted by rockinsg
    Guess would be 1K psf.. but oFcourse will depend on market sentiments.. things not looking too bright for developers these days..and by year end might be even worse..
    Expect similar psf as lakefront res

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    Quote Originally Posted by rockinsg
    Guess would be 1K psf.. but oFcourse will depend on market sentiments.. things not looking too bright for developers these days..and by year end might be even worse..
    1k psf for sengkang really takes the cake. Then again, how often have I and many others said that but still it ends up selling.

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    Quote Originally Posted by kane
    1k psf for sengkang really takes the cake. Then again, how often have I and many others said that but still it ends up selling.

    "Keppel Land intends to launch a new 622-unit residential project in Sengkang during 2HFY11F. Keppel Land was the top bidder at S$502 psf for the government land sales site in March 2011. It is situated near Sengkang MRT in the north-east of Singapore. Our ASP assumption for this project is S$1,100 psf. Within the vicinity, resale prices of Compass Heights (8 years old) averaged S$796 psf whilst The Quartz, a recently completed project one MRT station away, was transacted at S$963 psf. We believe a 10% premium over The Quartz is deserving with full amenities including a shopping mall - Compass Point within walking distance to the Sengkang project. "


    I dont think they will get 1.1 K, they expect.. but they will push it.
    Dont think will even visit showflat.. too expensive for me

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    If they market this project the way Thomson G is marketed, it will also attract a specific group of potential buyers. It really depends on marketing. $1100 psf in Seng Kang is only a matter of time. Maybe with this project, its just earlier rather than later. Compass Ht will be a huge beneficiary of this launch along with the many HDB nearby.

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    Quote Originally Posted by ysyap
    If they market this project the way Thomson G is marketed, it will also attract a specific group of potential buyers. It really depends on marketing. $1100 psf in Seng Kang is only a matter of time. Maybe with this project, its just earlier rather than later. Compass Ht will be a huge beneficiary of this launch along with the many HDB nearby.
    CM4: otherwise flippers would have been already in action on compass height..

    I think compass Ht is suffering cause there hasn't been any condo launch nearby..else price of Compass Ht is not justified to be this low, compared to other recent launch in worse locations...

    Only if one can buy Compass and can wait for 4 yr to sell

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    Lakefront somehow sounds better than Sengkang. I would be shocked if its indeed $1100psf....

    Quote Originally Posted by devilplate
    Expect similar psf as lakefront res

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    Quote Originally Posted by Wild Falcon
    Lakefront somehow sounds better than Sengkang. I would be shocked if its indeed $1100psf....
    Yes sounds better but in terms of time to reach the city, think Seng Kang might be a little faster! Anyway, not everybody works in the city! KPE brings Seng Kang residents to Nicoll Highway in less than 10 mins while PIE takes about 15 mins to 20 mins for residents from the west to just reach city. Not to mention about the traffic situation during peak hours.

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    Quote Originally Posted by Wild Falcon
    Lakefront somehow sounds better than Sengkang. I would be shocked if its indeed $1100psf....
    anything less then 1K would be shocking..
    Think even their breakeven will be close to 900psf 502(land)+350(dev)+100(+++) ..so certainly will be arnd 1.1 k psf for justifying development..

    My guess they will make small 1/2 bedder to make quantum comfy for upgraders..

    Let's see how many want to tradeoff space of HDB to get into smaller pigeonhole..

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    Many developers were vying for this land in March 2011, http://www.straitstimes.com/Breaking...ry_645435.html.

    All of the HDBs near it would have exceeded the 5 years MOP by the time the project TOP. If the land is really within 5 min walk of the Seng Kang MRT, $1100 psf is piece of cake to the upgraders, as there are no much land left around the MRT and town center for new condos.

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    Agreed. $1100 psf is considered reasonable. Even if they launch at $1200 psf, some people will still bite the bullet coz its really a good deal!

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    Why do some of you say 1k psf takes the cake? H2O (360psf land bid) which is in sengkang beside LRT station is selling at 950-1100psf.. So why will keppel launch this MRT site lower than that?!

    Fair price will be 1100-1250psf.. Of course, this is assuming H2O's price is fair.. hahaha..

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    Quote Originally Posted by linchong84
    Why do some of you say 1k psf takes the cake? H2O (360psf land bid) which is in sengkang beside LRT station is selling at 950-1100psf.. So why will keppel launch this MRT site lower than that?!

    Fair price will be 1100-1250psf.. Of course, this is assuming H2O's price is fair.. hahaha..
    Ya lor....i tink ave 1.1kpsf will b sell out....since cmi terrasse oredi go for 1100psf ave.....

    I expect keppel to follow lakefront sizes as well....or even slightly smaller

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    wow ppl so confident. keppel senkang 1100 considered reasonable/cheap

    like that capitaland bishan how ? 1500 considered reasonable or not ?

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    Quote Originally Posted by amk
    wow ppl so confident. keppel senkang 1100 considered reasonable/cheap

    like that capitaland bishan how ? 1500 considered reasonable or not ?
    So far i've 2 friends who are aiming this and they expected the price to be 1100psf for 3 bedder, and they will swoop without question.. They've seen terrasse and 1 of them nearly buy it.. To them, if terrasse can be 1100psf, then this sengkang mrt project is definitely reasonable at 1100psf or slightly higher.. End of day, this is afterall an MRT site..

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    Quote Originally Posted by amk
    wow ppl so confident. keppel senkang 1100 considered reasonable/cheap

    like that capitaland bishan how ? 1500 considered reasonable or not ?
    Nope...bishan at 1500psf is expensive

    Shd b 1300psf to be on par wif ascentia sky....but den if launch mm sizes, 1400-1500psf possible lor

    Now i start to tink ascentia is cheap liao...whahaha....but den i still cant get over the layout....

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    Quote Originally Posted by devilplate
    Nope...bishan at 1500psf is expensive

    Shd b 1300psf to be on par wif ascentia sky....but den if launch mm sizes, 1400-1500psf possible lor

    Now i start to tink ascentia is cheap liao...whahaha....but den i still cant get over the layout....
    How come justifying by comparing with other launch in SG.. What about fundamentals?

    - Rental returns?
    - Capital appreciation?

    Will these houses able to fetch rentals to justify the pricing? or everyone is just looking for a "greater fool"?

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    Quote Originally Posted by rockinsg
    How come justifying by comparing with other launch in SG.. What about fundamentals?

    - Rental returns?
    - Capital appreciation?

    Will these houses able to fetch rentals to justify the pricing? or everyone is just looking for a "greater fool"?
    Dun ask me y....suddenly ascentia sky project pop up in my mind lor....hehe

    Goto compare new wif new rite to make it more meaningful? Bishan central dun hf new projects mah...

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    Quote Originally Posted by devilplate
    Dun ask me y....suddenly ascentia sky project pop up in my mind lor....hehe

    Goto compare new wif new rite to make it more meaningful? Bishan central dun hf new projects mah...
    But can Sengkang rental justify these prices? 1.1 K psf..one would need 4K rental to just cover mortgage for 2+1..
    Think it would be only upgraders who would be interested.

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    Quote Originally Posted by rockinsg
    But can Sengkang rental justify these prices? 1.1 K psf..one would need 4K rental to just cover mortgage for 2+1..
    Think it would be only upgraders who would be interested.
    Depend on quantum...2bdr prolly 7xxsqft and launch at ard 850k? Possible to fetch 3.2-3.5k if based on kovan melody

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    1K psf for such a ulu place is really madness!!

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    Quote Originally Posted by devilplate
    Nope...bishan at 1500psf is expensive

    Shd b 1300psf to be on par wif ascentia sky....but den if launch mm sizes, 1400-1500psf possible lor

    Now i start to tink ascentia is cheap liao...whahaha....but den i still cant get over the layout....
    Bishan got shopping center wor, redhill got nothing, some more got MRT track noise. Redhill drive to town nearer though. Ascentia sky 1300 only huh ? Like that how can sengkang 1100 be "reasonable" ?

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    Quote Originally Posted by rockinsg
    But can Sengkang rental justify these prices? 1.1 K psf..one would need 4K rental to just cover mortgage for 2+1..
    Think it would be only upgraders who would be interested.
    A 3 bedder at kovan residence is asking $4.8k/mth. SK $4.2k is decent. Usually rental will follow price No one in their right mind will rent at 0.5% rental yield.
    Last edited by ysyap; 25-07-11 at 20:02.

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    Quote Originally Posted by ysyap
    A 3 bedder at kovan residence is asking $4.8k/mth. SK $4.2k is decent. Usually rental will follow price No one in their right mind will rent at 0.5% rental yield.
    CCR rental yield at 2%, why? Nobody is "right mind" would rent at 2% when can get 4% rental returns like OCR condos..
    With the 2013-2014 supply and no economic recovery in sight.. how many new demand is there?
    And If these OCR rentals try competing with CCR rentals, what will people choose?

    Prices dont dictate rent , demand does.. simple principal is demand and supply..

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    Launch at more than $1200kpsf will make alot of projects look cheap.

    No view but only MRT.

    This will be interesting.

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    Quote Originally Posted by solsys
    Launch at more than $1200kpsf will make alot of projects look cheap.

    No view but only MRT.

    This will be interesting.
    manhatten no view also got people bite at 14xxpsf..

    i guess normal sized units won't reach 1.2k psf.. Pool facing 3 compact, 3 bedder onwards should be 1.15 psf.. HDB facing 1.05k psf.. 1 bedder 1.3k psf, 2 bedder 1.2k psf..

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    i should say 1k psf for 3 bedder takes the cake. if i remember correctly H20 3 bedder around 920 psf?

    anyway, who cares what we think anyway, when the project launches, there'll still be lemmings who will cheong for it!

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    I smell the scent of CM5 soon....

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