Chinese Developers bidded $1b or 1051psf ppr for the Stirling road site beating MCL Land at $970psf ppr by $77m.
https://www.ura.gov.sg/uol/-/media/U...y/pr17-34a.pdf
Chinese Developers bidded $1b or 1051psf ppr for the Stirling road site beating MCL Land at $970psf ppr by $77m.
https://www.ura.gov.sg/uol/-/media/U...y/pr17-34a.pdf
Wow, china will prop up sg market soon, gov better ready to prepare more CM lol
Yes, very bullish news.
LOL
Looks like Morgan Stanley predictions were not baseless...
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
looking at the land prices transacted by developers, i find it hard to believe prices will crash 50% soon. Good news for those vested
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
http://www.propertyguru.com.sg/prope...t_PropertyNews
UPDATED: The tender for a 2.11ha residential site at Stirling Road in Queenstown that could yield 1,110 units attracted substantial interest from developers, with a total of 13 bids submitted at the close of the tender exercise on Thursday (18 May), said the Urban Redevelopment Authority (URA).
Hong Kong-listed Logan Property and Nanshan Group from China jointly submitted the highest bid of just over $1 billion for the large site. The second-highest bid of $925.7 million came from MCL Land, followed by a $901 million offer from OUE.
Dr Lee Nai Jia, Head (SEA) Research at Edmund Tie & Co., said the winning bid works out to about $1,050 psf per plot ratio, which means the breakeven price will likely be around $1,600 psf to $1,700 psf.
He revealed that the average price for other developments in the Queenstown and Redhill area, which includes Queens Peak ($1,696 psf) and Principal Garden ($1,662 psf), are priced within the same range.
One of the main attributes of the Stirling Road site is its central location and proximity to the Queenstown MRT station, noted Lee. “It is also close to the Buona Vista area, which consists of high growth industries such as pharmaceuticals and R&D. The rental catchment is substantial, as it appeals to people working in the CBD or Jurong East.”
Offered on a 99-year lease, the land parcel was originally on the reserve list of the Government Land Sales Programme. It was triggered for sale last month after an unnamed developer committed to a minimum bid of $685,250,000.
“The recent land bids and successful launches have further reinforced developers’ sentiments, and we expect stronger bids in upcoming launches. It will not be surprising to see another record bid for the tender of the mixed-use site located near the Bidadari housing estate,” added Lee.
The URA said a decision on the award of the tender will be made after the bids have been evaluated.
Suppose china gov should have given approval for such transaction?
For china wasting or losing billions is nothing, but for other countries the impact might be quite significant.
Not really surprising for a city fringe location. A comparable development of this size is PLQ which transacted at $943psf but that was couple of years back. PLQ is right next to MRT though but this is a few minutes walk away from Queenstown MRT. More peace and quiet.
At this rate, we will be looking at $1,500psf for breakeven and $2,000 as base selling price in 2022 or so. Its a little hard for me to think Queenstown/Alexander area will fetch such prices a few years back.
This will have an effect on Phase IIs of Principal Garden, ARTRA this year and all future condo developments near Bukit Merah-Queenstown belt. Agents will definitely drumbeat for these second phases which is technically not wrong.
What I am unsure of is the background of these 2 developers (Logan and Nan Shan) other than they have lots of dough. Anyone can shed some light on these 2 newcomers?
2 cents,
PropVestor
Is there any presedence the highest gls bid get rejected by gov?
China group beats forecasts with record S$1b bid for GLS site
Queenstown plot draws bids from several China and major local players; project size, unsold nearby supply are factors winning bidder will have to deal with
May 19, 2017
LYNETTE KHOO
A LARGE residential plot at Stirling Road launched by the government drew a record price of over S$1 billion in a joint bid from Logan Property Holdings - a newcomer hailing from China's Guangdong province - and Chinese conglomerate Nanshan Group.
The bullish bid of S$1,050.7 per square foot per plot ratio (psf ppr) on gross floor area for the 99-year-leasehold site also sets a new record in the Queenstown area, analysts point out.
This marks Hong Kong-listed Logan Property's maiden participation in the Government Land Sales (GLS) programme and foray into the Singapore residential market. "Bullish bidding is now the norm for GLS residential sites, driven by expected market recovery and limited number of sites on the market," said JLL national research director Ong Teck Hui.
The site - despite its 2.11-ha size and heavy financial commitment required - saw a healthy demand of 13 bidders in total.
CBRE head of research for Singapore and South-east Asia Desmond Sim noted that the substantial number of bidders for this relatively large plot reflects both the hunger of developers for limited sites and their upbeat sentiments. "The turnout is also another indicator that the market has indeed reached a trough," he concluded.
In what analysts see as a determination to enter the Singapore market, the top bid by the Chinese consortium is 8.3 per cent higher than the next highest bid tabled by MCL Land, and is 20.6 per cent higher than the S$871 psf ppr that MCC Land paid in June 2015 for the land parcel for Queens Peak.
This also came above the consultants' forecast range of S$780-S$1,000 psf ppr. Cushman & Wakefield research director Christine Li noted that the top bid "signals the developers' strong confidence in the Singapore residential market, their belief that prices could return to growth soon and the ability to price higher than the existing launches in the vicinity". Competition was fairly stiff with close to half of the tenderers bidding in excess of S$900 psf ppr for the site, she added.
Logan Property investor relations director Derek Lee told The Business Times that while the group continues to be focused on the Guangdong-Hong Kong-Macao Greater Bay Area, it has been studying the Singapore market for a while and believes "this is the right time to enter Singapore".
"No one knows where the (market) bottom is but our bidding price is reasonable given the quality land site and location," Mr Lee said.
The 227,000 sq ft plot near Queenstown MRT Station is expected to yield 1,110 units. Mr Lee said it is too early to share further details on the project, but analysts are projecting an average selling price from S$1,700 psf northwards.
Ms Li noted that despite the capital controls put in place by the Chinese government on the outflow of funds, the sheer amount of liquidity in the market is driving the appetite of aggressive Chinese developers.
Other Chinese players who participated in this tender were Kingsford Development and China Construction; the site also drew interest from major Singapore players CapitaLand, a consortium led by Hong Leong Holdings, UOL Group that tied up with Singapore Land, and Frasers Centrepoint Ltd.
Edmund Tie & Company head of South-east Asia research Lee Nai Jia felt that with recent land bids and successful launches reinforcing developers' upbeat sentiments, it "will not be surprising to see another record bid for the tender of the mixed-use site located near the Bidadari Housing Estate".
But there was also caution from some developers who tabled the lower bids.
Mr Ong noted that the second to eighth bids were in the range of S$885-S$970 psf ppr, closer to expectations and within a 10 per cent margin. This suggests some consensus in their outlook as well as caution, given the huge scale of the development and the unsold supply in the vicinity, he said.
The land parcel was first made available for sale on the Reserve List in March 2010 as two smaller adjoining parcels, before being merged as a single parcel for sale on the H1 2012 Reserve List. It was triggered for sale in April after a developer committed to bid at no less than S$685.25 million.
The tender conditions for the Stirling Road site require the winning bidder to apply pre-fabricated pre-finished volumetric construction (PPVC) method for the development, a construction method that involves entire unit modules being fabricated off-site before being assembled on-site. It will also have to provide an infant care and/or a child care centre with a minimum gross floor area of 500 sq m.
SLP International executive director Nicholas Mak said he expects the developers for this project to launch the residential units at above S$1,780 psf from mid-2018 onwards.
But he flagged that the relatively large project heightens the risk of developers having to pay the additional buyer's stamp duty on the land cost if they do not sell all the units within five years.
Still, market watchers are expecting this bidding fervour to spill over into the en bloc market, where the first collective sale of One Tree Hill Gardens near Orchard Road has been snagged by Lum Chang Holdings this month for S$65 million.
Demand for en bloc sites, however, will depend on how many GLS sites the government will decide to release in the second half of this year, Mr Mak said.
Cooling the rising temperature in the land sale market may be seen as a greater priority now, even at the risk of an oversupply in the rental market three to four years down the road, he added.
LOL. Wait long long.
Will be surprised if the bid is deemed too high and get rejected.
This government is either clueless on what is happening in the property market, or is simply bochap.
An exuberance take-up rate of new launches will not trigger a bull market in the wider market. Just consider who benefits from new launch sales? Yes, the bullish bid of GLS is the result of money printing.
Rental is still weak and from what I can see, rents still can't cover mortgage (or barely so). Not forgetting tax & maintenance cost etc.
I'm curious if investors now are bullish because they see more immigrants supporting rental or stronger economic growth?
Anybody paid absd recently to get back into the market?
we paid absd . it's true rents are dropping but i'm uncle already don't have much time left, since got spare money in cpf just kah kah hoot. basically same thinking as arcachon here, and also prices have moderated somewhat (by 20%). found it much easier to negotiate lower price these days although not everyone will firesale their unit. i still see singapore property as blue chip investment esp in / around this region. people talk about msia, Iskandar, bangkok (not cheap) vietnam etc. But i think singapore residential still the safest. stocks are OK but win some, lose some, and the tendency for stocks is to over trade since it's so liquid.
rental is tough, but can cover.
Last edited by tonymontana; 20-05-17 at 13:00.
Property selling above SGD 360,000.
3%-$5,400
3%-$5,400+7%
3%-$5,400+10%
https://www.iras.gov.sg/IRASHome/Oth...mp-Duty--BSD-/