Sengkang West Way site attracts strong interest

[reporter2]

http://www.businesstimes.com.sg/prem...erest-20130412

Published April 12, 2013

Sengkang West Way site attracts strong interest

UOL's top bid of $489 psf ppr exceeds analysts' expectations

By nathaniel chew


A 99-YEAR leasehold private residential land parcel at Sengkang West Way drew a top bid of $262.1 million, or about $488.84 per sq ft per plot ratio (psf ppr).

The site was launched under the Government Land Sales programme by the Housing Board (HDB) on Feb 28.

UOL Group unit Secure Development made the highest bid for the approximately 179,900 sq ft site, which has a maximum gross plot ratio of 3.0.

The site's maximum gross floor area is just over 536,000 sq ft.

The top bid slightly exceeded analysts' earlier expectations, which were in the range of $400-450 psf ppr.

Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle, said: "It shows that developers are confident of demand for mass-market homes being sustained following the cooling measures imposed in January."

Nicholas Mak, executive director of research and consultancy at SLP International, added that sites such as Sengkang West Way with water views are generally popular with developers and homeowners.

UOL's bid was 3.4 per cent higher than the next highest bid by Bayfront Land, a joint venture between Aspial Corporation and Fragrance Group Ltd. They bid $253.6 million for the site, which translates to $472.89 psf ppr.

Bids also came in, in descending order, from a joint venture - between Frasers Centrepoint's FCL Topaz, Far East Organisation and Sekisui House - and Qingjian Realty, among others.

CapitaLand's Athens Residential Development submitted the lowest bid, at $111 million or $207.01 psf ppr.

The sale drew a total of eight bids, in line with the more optimistic expectations of analysts.

Desmond Sim, associate director at CBRE Research, said the healthy response to the sale pointed to developers' "need to replenish their respective land banks".

UOL president Liam Wee Sin said the developer planned to build a 20-storey development comprising around 600 units on the plot, hoping to "tap the upgrader demand in the north and north-east of Singapore".

Analysts estimate a break-even price of around $900 psf for the site, and expect UOL to launch the project at $1,000-1,100 psf.

Sungei Punggol, Sengkang Sports and Recreation Centre and Sengkang Riverside Park are located near the site.

Also in the vicinity are several other residential developments, including executive condominium (EC) H20 Residences and another upcoming EC site, both developed by City Developments.

H20 Residences was launched in March 2011 and is selling at around $950 psf.

Mr Ong said the Sengkang West area was "generally less crowded in terms of competition".

[reporter2]

http://www.todayonline.com/business/...bid-s2621m-uol

Property

Sengkang site gets top bid of S$262.1m from UOL


SINGAPORE — The tender for a private housing site in Sengkang West Way attracted eight bids at the close yesterday, with the top bid of S$262.1 million coming from a UOL unit, Housing and Development Board (HDB) data showed.

The 99-year site, near the Punggol Park connector, sits on about 178,723 sq ft of land and has an allocated plot ratio of 3.0. With a maximum gross floor area of about 536,168 sq ft, it can yield about 555 homes, the HDB said. The highest bid from UOL unit Secure Development translates to about S$488.84 per sq ft per plot ratio.

The next best bid of S$253.6 million was submitted by Bayfront Land, a venture between Aspial Corp and Fragrance Group, or S$472.89 psfppr.

Mr Ku Swee Yong, Chief Executive of International Property Advisor, estimated the breakeven price at S$850psf and average selling price for the project at S$1,050psf.

Mr Eugene Lim, Key Executive Officer at ERA Realty, noted that an adjacent land parcel at Sengkang West Way / Fernvale Link allocated for Executive Condominium housing was won last November by a City Developments unit for S$296.48 psfppr.

“Developers have continued to bid for land despite cooling measures as they want to build up their land bank. This is even more so if the site is attractive,” he said. The HDB will award the tender at a later date.

[avo7007]

Property price how to drop?

CDL won a bid on an adjacent plot at $296 ppr in Nov 2012. UOL is paying $488 ppr in April 2013.

Desperate landbanking?

[Lemonlaw]

Property price how to drop?

CDL won a bid on an adjacent plot at $296 ppr in Nov 2012. UOL is paying $488 ppr in April 2013.

Desperate landbanking?

There's a difference in EC and PC land bidding.

[avo7007]

There's a difference in EC and PC land bidding.

Yeah. But a 65% difference?

CDL's EC is now a very good buy i supposed? After 5+5 years, both the same right?

[Rysk]

Yeah. But a 65% difference?

CDL's EC is now a very good buy i supposed? After 5+5 years, both the same right?

But I tot those experts in real estate mkt have been saying the difference between EC & PC is about 20%??

[Lemonlaw]

Yeah. But a 65% difference?

CDL's EC is now a very good buy i supposed? After 5+5 years, both the same right?

After 5 yrs when EC owners meet MOP, they will be able to sell cheaper than PC, buyer will still bite EC resale as compared to folks who bought at a high premium for PC moreover same location.

What's the diff? location wise.... pricing is the core.

[Rosy]

Property price how to drop?

CDL won a bid on an adjacent plot at $296 ppr in Nov 2012. UOL is paying $488 ppr in April 2013.

Desperate landbanking?

assuming all other overheads and profit margin to be the same, EC will be 200psf cheaper than this one(expected to be 1k psf)