KepLand to develop 630-unit condo near Sengkang MRT

[mr funny]

http://www.businesstimes.com.sg/sub/companies/story/0,4574,431033-1300564740,00.html?

Published March 19, 2011

KepLand to develop 630-unit condo near Sengkang MRT

By KALPANA RASHIWALA


KEPPEL Land is planning to develop a condo of about 630 units near Sengkang MRT station. It expects this project to be ready for launch by the end of the year.

The condo will have units ranging from 450 square feet to 2,200 sq ft in one to four-bedroom configurations, as well as penthouses, the listed property group said yesterday.

The project, to be completed in early 2015, will be developed on a 99-year leasehold plot that the group was awarded yesterday by the government. KepLand was the highest bidder for the site which was sold at a tender that closed on March 15. Its winning bid was $286.79 million or $501.76 per square foot per plot ratio. Some analysts have estimated the project's breakeven cost at about $850 psf.

Three LRT stations away, next to Layar Station, City Developments recently released H2O Residences. The average price is about $920 psf.

KepLand said that it expected keen interest from upgraders in Sengkang as well as nearby HDB estates in places such as Punggol, Serangoon and Hougang for its condo project. 'We are confident that the new development, with its strong attributes and value propositions, will see positive demand from genuine home purchasers,' Augustine Tan, president (Singapore Residential) of KepLand, said.

The site is at the corner of Sengkang Square and Compassvale Road, a stone's throw away from Sengkang MRT/LRT Station, bus interchange and Compass Point mall. It is also near schools such as Nan Chiau Primary and Nan Chiau High.

KepLand's bid was just 4.5 per cent higher than the next highest bid from a tie-up involving City Developments, Hong Leong Group and TID Residential. The tender drew nine bids in all.

In its statement yesterday, KepLand noted that its clinching the Sengkang plot comes after the launch in November of the group's condo near Jurong Lake and Lakeside MRT Station - The Lakefront Residences. KepLand said that it had sold about 90 per cent of the 590 units launched so far in the 629-unit project.

It previewed the project in November at about $1,020 psf on average - a new record for the location.

[august]

sell at 1k to 1.1k psf :o

[kane]

sell at 1k to 1.1k psf :o
Yes, I was about to say the same. Since CDL is doing 900+ at sengkang, kepland can do the honours of being the first to sell at 1k.

[linchong84]

H2O already 900-1k plus psf.. if keppel is smart, they will sell at 1.1-1.2k psf.. especially those shoebox sure around 1.2k psf.. afterall the land cost is around 150psf higher than h2o..

[devilplate]

analyst r wrong?

latest cooling measures did not dampen the mass market condos or the effect haven kick in yet?....:rolleyes:

The last two rounds of the government’s property (http://forums.condosingapore.com/property-search/property/9) cooling measures may have driven more home buyers to opt for smaller and cheaper homes, according to new research.

Property analysts attributed the trend to the tighter loan-to-value (LTV) ratio for home buyers with existing mortgages. The LTV ratio has been cut twice since last year, from 80 percent to 70 percent in August 2010, then to 60 percent in January this year.


http://www.propertyguru.com.sg/property-management-news/2011/3/29996/more-home-buyers-choosing-smaller-units

A market (http://forums.condosingapore.com/property-search/market/9) veteran said that small units are “the ones that are setting the record high psf prices”.

more reason to up the min size from 300sqft to at least 4xx? smaller units definitely distort the prices and will hf a greater impact on the average median px as their number grows in %

[linchong84]

The cooling measures maybe reduce the heat a little, but didn't do enough to cool it.. with capitaland and keppel land chionging into bidding market, things get heated more only.. now every developer hungry for land.. and inflation so high with i/r so low, people also want to buy property.. US market don't seem to be reviving well too meaning i/r will stay low.. if the govt want to cool market, they need to come out with more extreme things..

[devilplate]

The cooling measures maybe reduce the heat a little, but didn't do enough to cool it.. with capitaland and keppel land chionging into bidding market, things get heated more only.. now every developer hungry for land.. and inflation so high with i/r so low, people also want to buy property.. US market don't seem to be reviving well too meaning i/r will stay low.. if the govt want to cool market, they need to come out with more extreme things..

actually, the quantum of mass market new launches didnt really up much...developer cut the size and up the psf while keeping the quantum relatively unchanged.....but analyst only use ave median psf to analyse.....

taking extreme eg. last time b4 2007, 1bedder about 500-600sqft....let say 1kpsf...work out to be 500-600k....now micro MM 1bedder at 350sqft....500k works out to be 1.4k+psf....distorting prices in term of psf...

actually latest launches r much better designed(w/o baywindow and planters which usually takes up about 10-15% of the usable space) but bigger a/c ledge now....haha....so psf goes up by about 10% actually quite ok....wat u guys feel?

[linchong84]

H2O this kind of location also selling around 950-1kpsf for 4 bedder, sales quite good.. shitty fernvale already got this kind of results, sengkang mrt area maybe even more huat..

[kane]

actually, the quantum of mass market new launches didnt really up much...developer cut the size and up the psf while keeping the quantum relatively unchanged.....but analyst only use ave median psf to analyse.....

taking extreme eg. last time b4 2007, 1bedder about 500-600sqft....let say 1kpsf...work out to be 500-600k....now micro MM 1bedder at 350sqft....500k works out to be 1.4k+psf....distorting prices in term of psf...

actually latest launches r much better designed(w/o baywindow and planters which usually takes up about 10-15% of the usable space) but bigger a/c ledge now....haha....so psf goes up by about 10% actually quite ok....wat u guys feel?

why does the aircon need a bigger ledge? are they given extra allowance to build aircon ledge to then sell it to us?

[devilplate]

why does the aircon need a bigger ledge? are they given extra allowance to build aircon ledge to then sell it to us?

i tink there is some criteria with regards to how big the developer can build a/c ledge.....i read it b4 and if i m not wrong, can only build certain width.....but i tink no restriction on the length! haha

oh well, a/c ledge not counted in the GFA.....but counted in the strata space and sell to buyers:banghead: ....so to the developers, bigger a/c ledge means bigger profit for them!!:doh:

u may wana search ura website to find the actual a/c ledge criteria....

[CCR]

Min 1.2k psf.... Why gahmen never prevent developer from selling us aircon ledge when it's not part of gfa?

[devilplate]

http://www.ura.gov.sg/circulars/text/dcdgfahb_d0e1475.htm#d0e1774

7.12.1 Air-conditioner ledges

Air-conditioner ledges, including L-shaped a/c ledges not exceeding 1m wide, as measured perpendicularly from the external wall, are excluded from GFA.

This also apply to the situations illustrated below, where the a/c ledges may project more than 1m at the corner, as measured from the wall.

For a/c ledges exceeding 1m width, the entire area is computed as GFA. This is to ensure that a/c ledges are used for the sole purpose of supporting a/c equipment and not as extended ledges that may be converted later to liveable area (e.g. balcony, room extension).



http://www.ura.gov.sg/circulars/text/GFA_files/image46.jpg
Figure 7-10 Air-conditioner Ledges

[kane]

Min 1.2k psf.... Why gahmen never prevent developer from selling us aircon ledge when it's not part of gfa?

yeah, they better state clearly how much is the aircon ledge space and give a clear breakdown on internal usable space. cos the compressor didn't get any bigger or more powerful to justify catering more space.

[ysyap]

actually, the quantum of mass market new launches didnt really up much...developer cut the size and up the psf while keeping the quantum relatively unchanged.....but analyst only use ave median psf to analyse.....

taking extreme eg. last time b4 2007, 1bedder about 500-600sqft....let say 1kpsf...work out to be 500-600k....now micro MM 1bedder at 350sqft....500k works out to be 1.4k+psf....distorting prices in term of psf...

actually latest launches r much better designed(w/o baywindow and planters which usually takes up about 10-15% of the usable space) but bigger a/c ledge now....haha....so psf goes up by about 10% actually quite ok....wat u guys feel?

Since we can use bay windows in the past as home spaces as well as planter boxes by covering with planks, etc, we don't even have those spaces now to use but they throw the spaces to air con ledge and we're paying more for less? Ridiculous. Buyers lose big time. Unless we ask our reno contractor to build a little storage area at air con ledge which can be easily accessible from the yard area and still is very safe??? Must think of how if not really lose big time... sigh... high psf and smaller space.

[maisonjai]

actually latest launches r much better designed(w/o baywindow and planters which usually takes up about 10-15% of the usable space) but bigger a/c ledge now....haha....so psf goes up by about 10% actually quite ok....wat u guys feel? ..

Agreed, rather than paying for 20% extra of unuseable space.
Those developments with big planters/bay windows in future how, lower their asking price by 10~15?

[maisonjai]

Min 1.2k psf.... Why gahmen never prevent developer from selling us aircon ledge when it's not part of gfa?

some smarter ones, lower half a/c ledge & upper half baywindow :D

[ysyap]

Agreed, rather than paying for 20% extra of unuseable space.
Those developments with big planters/bay windows in future how, lower their asking price by 10~15?

Are u sure you are not paying that extra 20% of cash? psf across the entire island had risen. Now D19 condo asking 1200psf compared with 900psf 3 years back. Similarly, D20 condo asking 1000psf compared with 750psf 3 years ago. Everything climbing like rocket. With the same amount of $, you are getting smaller units today compared with last year. Agents will make u think that now projects are better coz no baywindows and planter boxes but they didn't tell u that u are still paying same amount for smaller units?

If given a choice, I'd prefer to pay same amount with baywindows for the following reasons. 1. It makes the room look bigger and more spacious - appeals to the eye. 2. Can still put things on baywindows and planter boxes for decoration, etc. 3. Can get reno designers to use those spaces neatly. Have seen creative ideas like building wardrobes on part of baywindows and even build a study table over the baywindows... loads of ideas to use those spaces.

Anyway, think prices will not return to last time again so no point thinking abt the past now.

[maisonjai]

From owner occupier, since bay window is already there might as well get the ID to make good use of it.

For investors looking for rental yield then "why pay more?" quantum.

here's my point, say 2 bedder same location with decent common room that can accomodate a queen bed.

1055sqft x 1psf = 1.05mio - balance units BUC (planter+bayw)
848sqft x 1.15psf = 0.97mio - new launch (no planter no bayw)
which is a better pick for most buyers?

when u sell, say price inch up a little
1055sqft x 1.2psf = 1.26mio
848sqft x 1.32psf = 1.12mio (1.2psf + 10%)
which is easier to swallow for the next buyer?

Looking at current trend, more developments are doing away with baywindow & planters. Some don't mind paying more for baywindows+planters but mkt have also become more price sensitive especially with lower LTV. No right or wrong here, depends each strategy.

comments welcome, am still learning :D