Lian Beng bags $150.7m condo contract

[mr funny]

http://www.businesstimes.com.sg/sub/companies/story/0,4574,442115,00.html?

Published June 7, 2011

Lian Beng bags $150.7m condo contract


LIAN Beng Group announced yesterday that it had won a private residential contract worth $150.7 million.

The project will cover the building and earthworks of the condominium - known as Hedges Park - at Upper Changi Road North/Flora Drive.

The total land area of about 330,000 square feet will have 501 residential units, a basement car park, swimming pools, landscape and ancillary facilities.

The project is due to commence this month and is estimated to be completed by August 2014.

At the start of June, Lian Beng's aggregate order book stood at $812 million, including the contract win. The project is expected to contribute to the company's revenue from FY2012 to FY2014.

Lian Beng believes that it will benefit from the revised GDP growth forecast from 4-6 per cent to 5-7 per cent.

It cited the Building & Construction Authority's (BCA) projection of construction demand to reach between $22 billion and $28 billion, where 65 per cent of the aggregate demand will come from building projects.

'Moving forward, we will continue to tender for more construction projects in both the public and private construction sectors,' chairman and managing director Ong Pang Aik said.

[Fleur]

Meaning 300k average building costs per unit. Is it normal?

[linchong84]

Meaning 300k average building costs per unit. Is it normal?

Its gfa is around 412613sqft.. So building costs sums up to around 365psf.. Seems to be a bit on the high side.. Finishing is compressed marble living room.. Maybe because they have too many pools..

[moomooteo]

The construction cost is even higher than land price. Land I remember is 120+mil. Construction is 150+mil. So the construction price psf is $326psf. Add land at $323psf, we are looking at breakeven of $700psf. Add in profit of $150, that translate to selling price of $850 on the average, which is what we are seeing now for Hedges price.

[sleek]

That works out to a construction cost of $326psf, think should be within estimates.

http://www.ura.gov.sg/pr/text/2010/pr10-52.html

[Chonngpang]

With the gd finishing and they throw in with free washer, oven and fridge..gather HL margin for this project is quite slim..

[Fleur]

Thanks. 150/850 is still 17 percent profits, which is quite good in business terms. But the construction costs per psf does seem quite high.

[linchong84]

With the gd finishing and they throw in with free washer, oven and fridge..gather HL margin for this project is quite slim..

Actually compressed marble is so so lah.. Of course better than tiles lah.. But it is still not marble.. Free oven exists in every condo.. Fridge and washer's cost are not that high cos they buy in bulk, most prob less than 500k..

[Chonngpang]

I m planning to exercise my option for hedges..got any final word of advice? Got it for $880 psf for a 2+1 unit..under 800k..concern is it is a 99 LH surround by all the big FH units..capital appreciation maybe limited..

[linchong84]

I m planning to exercise my option for hedges..got any final word of advice? Got it for $880 psf for a 2+1 unit..under 800k..concern is it is a 99 LH surround by all the big FH units..capital appreciation maybe limited..

Yah that was my concern as well.. Too many FH around.. Now it is still new launch so people like it.. But next time all are resale condos, people will look at the lease.. If the FH sell cheap cheap, then hedges has no reason to sell more exp than them.. But well, if you buy to stay, you like it can liao..

[Chonngpang]

Yah that was my concern as well.. Too many FH around.. Now it is still new launch so people like it.. But next time all are resale condos, people will look at the lease.. If the FH sell cheap cheap, then hedges has no reason to sell more exp than them.. But well, if you buy to stay, you like it can liao..
Yes.buy to stay but given the small size of the unit..maybe only stay for 2-3 yes and sell off. Heard the next plot of GLS could fetch even higher bid..that could help appreciate HP value upon TOP

[rattydrama]

I m planning to exercise my option for hedges..got any final word of advice? Got it for $880 psf for a 2+1 unit..under 800k..concern is it is a 99 LH surround by all the big FH units..capital appreciation maybe limited..
so u already know the answer, cap appreciation limited. What makes u sign the OTP?

general if u buy for own stay its ok and if there is rental opportunity it is also ok. Otherwise, :tsk-tsk: :2cents: :2cents: :2cents:

[linchong84]

Yes.buy to stay but given the small size of the unit..maybe only stay for 2-3 yes and sell off. Heard the next plot of GLS could fetch even higher bid..that could help appreciate HP value upon TOP

Aiyah since you pay otp liao, just look forward to receiving the keys lah.. Don't think so much liao.. Next time when market is good then sell loh..

[devilplate]

so u already know the answer, cap appreciation limited. What makes u sign the OTP?

general if u buy for own stay its ok and if there is rental opportunity it is also ok. Otherwise, :tsk-tsk: :2cents: :2cents: :2cents:
Ferraria park transacting 9xxpsf.....and much bigger quantum

I shd hf close both eyes and buy the 2bedder at 606k beside sub stn?:rolleyes:

[Fleur]

Rental is super competitive. 99 lh surrounded by fh in a not- so- connected location with few amenities, nearby prison.... I would walk away.... And buy resale fh at flora road.

[devilplate]

Rental is super competitive. 99 lh surrounded by fh in a not- so- connected location with few amenities, nearby prison.... I would walk away.... And buy resale fh at flora road.
Quantum significantly lower den gale n ferraria....pity the layout cmi....if its as efficient as waterview, den can consider actually

[Chonngpang]

Quantum significantly lower den gale n ferraria....pity the layout cmi....if its as efficient as waterview, den can consider actually
U don' like the layout?all units almost has pool view

[devilplate]

U don' like the layout?all units almost has pool view
2bedder for eg, balcony oversized n bedrooms too small....cheaper units r non pool facing

[devilplate]

The construction cost is even higher than land price. Land I remember is 120+mil. Construction is 150+mil. So the construction price psf is $326psf. Add land at $323psf, we are looking at breakeven of $700psf. Add in profit of $150, that translate to selling price of $850 on the average, which is what we are seeing now for Hedges price.
Other den construction cost , still got other cost like marketing, comm etc etc rite...really razor thin margin for the developer....

The maint fee quite high too....too many water feature liao....

[Chonngpang]

2bedder for eg, balcony oversized n bedrooms too small....cheaper units r non pool facing
Must admit the rooms are damn small..especially master room..can' even fit in side table with king size bed:doh: The junior room was depressing

[curio]

Must admit the rooms are damn small..especially master room..can' even fit in side table with king size bed:doh: The junior room was depressing

Visited the hedges showflat. Real small. Y didn't u consider ferraria or gale? Yes, quantum wise u pay more but u also get bigger space & fh.

[rattydrama]

Ferraria park transacting 9xxpsf.....and much bigger quantum

I shd hf close both eyes and buy the 2bedder at 606k beside sub stn?:rolleyes:

when there are too many LH, FH becomes precious...ya sometimes u should close both eyes and take a deep breath if the investment make sense. Low rental still got rental rite? Whats the yield? :2cents:

[rattydrama]

Visited the hedges showflat. Real small. Y didn't u consider ferraria or gale? Yes, quantum wise u pay more but u also get bigger space & fh.

thats rite...anyone to get sleepless nite knowing that yours is LH and others are FH and bought at cheaper price?

to think of it, its quite scary unless yr heart is stronge and really really like the place.

[devilplate]

when there are too many LH, FH becomes precious...ya sometimes u should close both eyes and take a deep breath if the investment make sense. Low rental still got rental rite? Whats the yield? :2cents:

2bedder at 606k quite safe.....vy hard to lose $.....but must sell within 5yrs after TOP....when it gets old...99lh among FH gets scary liao:2cents:

2-2.5k shd b achievable bah for puny and brandnew 2bedder

ferraria park 1bedder asking for 7xxk and 2bedder 9xxk now....so Hedge 1bedder at 4xxk and 2bedder at low 600k quite safe la....

[devilplate]

thats rite...anyone to get sleepless nite knowing that yours is LH and others are FH and bought at cheaper price?

to think of it, its quite scary unless yr heart is stronge and really really like the place.

bopian....unless go for older like avila

even avila asking 8xxpsf for 2bedder...work out to be 750k+-

[bargain hunter]

i only know buying lian beng will be good. cash inflow looks like going to be very very strong in the coming years. :)

[gav108]

thats rite...anyone to get sleepless nite knowing that yours is LH and others are FH and bought at cheaper price?

to think of it, its quite scary unless yr heart is stronge and really really like the place.


Unfair comparison since properties have increased greatly in price in recent years.

I bought Edelweiss Park at 517 psf in 2002 (1335sf) for 690k, now 800+psf at least. My mother bought her 5A hdb flat for 110k (1460sf) in 1993, now 500k...etc etc.

Regarding small unit sizes, it seems to be the trend nowadays. Saw the 2-br unit plans for NV residences, Foresque and H2O residences. All no bigger, in fact most are smaller than those in Hedges Park. Initially wondered why their master bedroom are bigger than those in Hedges park (they have balconies/planters/bay windows too), then realised they do not come with bomb shelter. Thought it's a good idea to have space for a king-sized bed plus 2 side tables, until I asked myself - without a utility/storeroom/bomb shelter, where am I going to put my ladder, vacuum cleaner, broom, ironing board, pail, winter jackets etc etc? Not to mention the wardrobe sizes provided nowadays are pathetic.

So those shopping for 2-bedders be warned - the apparent spaciousness is at the expense of practical storage space. Those shopping for 2-bedders should think not about putting a king-size bed, but about having sufficient practical storage. Having a storage room beats room spaciousness when space is at a premium in my humble opinion.

BTW someone I know owns a HDB 3-room BTO flat (i.e. 2-bedder), and it is also only abt 720sf, complete with yard and ac ledge :( (Hedges Park 764-797sf)

Therefore, if one wants spaciousness, then the only option is to get older condos. Then again, the upcoming Seastrand has rather spacious units...jus gotta pay more :o

[toiletsiao]

Yes.buy to stay but given the small size of the unit..maybe only stay for 2-3 yes and sell off. Heard the next plot of GLS could fetch even higher bid..that could help appreciate HP value upon TOP

theres another plot of land nxt to the current GLS site in the confirmed list in 2H2011...its going on sale soon also... i think soon after the current one infront of ferraria park closes..

[toiletsiao]

2bedder at 606k quite safe.....vy hard to lose $.....but must sell within 5yrs after TOP....when it gets old...99lh among FH gets scary liao:2cents:

2-2.5k shd b achievable bah for puny and brandnew 2bedder

ferraria park 1bedder asking for 7xxk and 2bedder 9xxk now....so Hedge 1bedder at 4xxk and 2bedder at low 600k quite safe la....

the 606k unit still available meh? i think its sold liao...