AMK leasehold site gets $550m top bid

[reporter2]

http://www.straitstimes.com/archive/...p-bid-20130109

AMK leasehold site gets $550m top bid

Published on Jan 09, 2013

By Melissa Tan


A RESIDENTIAL site in Ang Mo Kio that attracted 12 developers drew a bumper offer of $550 million - a sign that the sky-high land prices seen late last year will continue.

Wheelock Properties lodged the top bid, which works out to $790 psf per plot ratio (ppr), for the nearly 1.85 ha site.

This easily topped the range of $560 to $650 psf ppr predicted by analysts, who had already ramped up their forecasts for the 99-year leasehold plot due to the area's limited supply of condos.

Wheelock's bid for a suburban, leasehold site is a departure for the developer, which is usually known for its upmarket freehold condominiums in prime districts.

It has rarely ventured into the suburbs, said DWG senior manager Lee Sze Teck, adding that almost all of Wheelock's developments are freehold, with the exception of Parc Oasis in Jurong East.

He estimated the break- even price at between $1,250 and $1,300 psf for the site in Ang Mo Kio Avenue 2.

About 680 units can be built on the site, with selling prices from $1,350 to $1,600 psf, said analysts.

The $1,600 psf upper limit is because the project is likely to be priced lower than Centro Residences, next to Ang Mo Kio MRT, which sells for around that price, said ERA key executive officer Eugene Lim.

The Ang Mo Kio Avenue 2 site is near the future Mayflower MRT station, part of the new Thomson Line to be completed in 2021.

The $550 million bid from Wheelock's Pinehill Investments was only 2.5 per cent above the $536.2 million lodged by CapitaLand unit Athens Residential Development.

ERA's Mr Lim said the bid price was much higher than resale prices of around $570 psf at the development next to the site, Horizon Green.

The third highest bid was $518.4 million from Bayfront Land, a joint venture between Fragrance Group and World Class Land. Keppel Land unit Acresvale Investment was next, with $515 million. The lowest bid was from Plan Achieve, at $362 million or $520 psf ppr.

Mr Ong Teck Hui, Jones Lang LaSalle national director for research and consultancy, said the tender results suggest the new pricing norm for attractive suburban sites has risen to around $800 psf ppr.

Pointing to a $791 psf ppr top bid for a New Upper Changi Road site that closed last October, he said top bids for similar attractive suburban sites were in the $500 to $550 psf ppr range early last year.

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[reporter2]

http://www.businesstimes.com.sg/arch...-site-20130109

Published January 09, 2013

Wheelock unit puts in highest bid for Ang Mo Kio site

By ong chor hao


A WHEELOCK Properties (Singapore) unit, Pinehill Investments, has put in the highest bid of $789.89 per square foot per plot ratio (psf ppr) for a private residential site at Ang Mo Kio Avenue 2.

Demand was strong for the 99-year leasehold site with 12 bids put in, which included some big name developers.

"We see great potential in this choice site being next to St Nicholas Girls' School and the future Mayflower MRT station," said Tan Bee Kim, senior executive director at Wheelock Properties (Singapore).

Lee Sze Teck, senior manager for training, research and consultancy at DWG, noted that Wheelock has "rarely ventured into the suburban areas" and are usually known for their upmarket freehold condominiums in prime areas.

Should Wheelock be awarded the Ang Mo Kio site, it will be just the developer's third development in the suburbs, after Parc Oasis and the Sea View. It will also just be Wheelock's second non-freehold property after Parc Oasis.

Wheelock's bid translated to an absolute sum of just over $550 million, compared with the second highest offer of $536.2 million, or $770.08 psf ppr, from CapitaLand unit Athens Residential Development.

Other top bidders included Bayfront Land (a tie-up between Aspial Corporation and Fragrance Group); Keppel Land unit Acresvale Investment; and a tie-up involving units of City Developments Limited and Hong Leong Group: Intrepid Investments, Verwood Holdings and Hong Realty.

The number of bidders was within the range of seven to 15 bids predicted by analysts earlier.

However, the price was notably higher than the range of $560 to $650 psf ppr they put forth then.

Ong Teck Hui, national director for research and consultancy at Jones Lang LaSalle, said the elevated bidding for residential sites that became more apparent in the last quarter of 2012 is continuing into 2013. "Looks like the new pricing norm for attractive suburban sites is now around $800 psf ppr," he said, noting the top bid for the Ang Mo Kio site at $789.89 psf ppr and that for a land parcel in New Upper Changi Road in October last year at about $791 psf ppr.

This compares with top bids for "similar attractive suburban sites" at between $500 and $550 psf ppr at the beginning of last year, Mr Ong said.

Eugene Lim, key executive officer at ERA Realty, said the Ang Mo Kio Avenue 2 development will influence the prices of properties in the area.

Analysts expect breakeven prices of between $1,180 and $1,300 per square foot (psf), and selling prices of between $1,350 and $1,600 psf.

This compares with the average selling price of $1,142 psf at a comparable development in the area, Meadows@Peirce, said Nicholas Mak, executive director of research and consultancy at SLP International.

[kane]

Meadows at peirce other than freehold, has nothing to show for.

[Kanarazu]

Meadows at peirce other than freehold, has nothing to show for.

Built on depressed ground, not that ideal.

[kane]

both also on similarly depressed ground as compared to the street level on one side of the plot.

[mantrix]

both also on similarly depressed ground as compared to the street level on one side of the plot.

Beware of flash floods

[kane]

The road in front of it slopes much further down hill. So unlikely to flood there.

[TKT]

Meadows at peirce other than freehold, has nothing to show for.

Can you elaborate?
Just curious.

Thanks.

[wind30]

Meadows at peirce other than freehold, has nothing to show for.

Meadows no MRT.

During launch they bluff say got MRT but now no more..... Lucky the Thomson lines MRT is built nearer my place.

I can walk to two MRT stations next time. one 1.2km and another 700m.

[kane]

Meadows no MRT.

During launch they bluff say got MRT but now no more..... Lucky the Thomson lines MRT is built nearer my place.

I can walk to two MRT stations next time. one 1.2km and another 700m.

you stay at lentor area?