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View Full Version : West Coast site gets $176m bid



bargain hunter
24-06-11, 09:58
THE top bid for a residential site opposite West Coast Park came in at $175.78 million or $461 per square foot per plot ratio (psf ppr) yesterday, falling below market expectations.
When the government launched the tender for the 99-year leasehold site at West Coast Link/West Coast Crescent in early May, consultants predicted a top bid of $495-530 or even $560-580 psf ppr.
While the tender did not stir things up on the price front, it did garner considerable interest with 12 developers gunning for the site. And there was a close fight among the top few bidders. Far East Organization submitted the highest bid - just 1.1 per cent above Centurion RE's offer of $456 psf ppr.
A tie-up between Hong Leong Holdings and City Developments followed with a bid of $450 psf ppr. Other participants included MCL Land, Allgreen Properties and Tuan Sing Holdings.
Analysts are divided over what the tender results hold for the property market. Colliers International research and advisory director Chia Siew Chuin believes that developers expect prices to soften. Her estimates put the breakeven cost at $800-840 psf and the average selling price at $900-940 psf, but projects in the area are selling for more, she said. At The Vision next door, for instance, a unit went for $1,106 psf in May.
Savills Singapore research and consultancy associate director Alan Cheong has a different take. Far East's bid would reap a profit margin of about 27 per cent if units can be sold at current prices, he said. 'This means that the developer needs to sell only about 73 per cent of the net saleable area to break even.'
Credo Real Estate executive director Ong Teck Hui noted that interest in the West Coast site was 'definitely keen', but bids were 'measured and not excessive'. He cited the site's amenities and sea view as attractions.
'Developers could have become more selective,' he said. 'Mediocre sites could see a low interest level with subdued bids while more attractive sites are able to generate stronger participation with moderate bidding,' he said, projecting a breakeven cost of around $850 psf and an average selling price of around $1,000 psf.
Far East development and planning executive director Chng Kiong Huat said that there are plans for a project comprising one tower of service apartments, a second tower of one to four-bedroom apartments, and possibly some townhouses.
Far East owns and operates a service apartment project nearby which has seen consistently high demand, he said. 'We see a need for a service residence in this area to serve the expatriates and transient business visitors working on Jurong Island, in Jurong Port as well as in the science and technology corridor in one-north, Singapore Science Park and renowned tertiary institutions in the vicinity.'

amk
24-06-11, 10:47
is this the next to Vision ?

bargain hunter
24-06-11, 11:20
yes, west of vision i think.


is this the next to Vision ?

mantrix
24-06-11, 11:36
They will launch this at 1400psf and call it The Visionary :D

sfwoo
24-06-11, 11:49
They will launch this at 1400psf and call it The Visionary :D

D5 cheonging to the moon...

devilplate
24-06-11, 11:53
D5 cheonging to the moon...

it will really make interlace dirt cheap

still considering whether to make a plunge anot....

any comments on interlace?

Jadey
24-06-11, 12:10
D5 cheonging to the moon...

perhaps some spill over effect from JL and One north. Interesting that FEO is considering a service apartment. What other service apartment do they have in that area?

amk
24-06-11, 12:16
it will really make interlace dirt cheap

still considering whether to make a plunge anot....

any comments on interlace?
Interlace is really a very nice project. Wait for the top stack, they call all the units in that container PH units. It has a much better view, as it is single loading, u have view on both sides. Liew himself bought one. I offered a cheque abt same price last year, rejected saying "not launch yet". The location of Interlace is much better, and it indeed has the icon look. The facilities are also good. I prefer this architect over the D'Leedon.

wesing
24-06-11, 12:31
perhaps some spill over effect from JL and One north. Interesting that FEO is considering a service apartment. What other service apartment do they have in that area?

West Coast Village which is within the just reno West Coast/Ginza Plaza.

devilplate
24-06-11, 12:34
Interlace is really a very nice project. Wait for the top stack, they call all the units in that container PH units. It has a much better view, as it is single loading, u have view on both sides. Liew himself bought one. I offered a cheque abt same price last year, rejected saying "not launch yet". The location of Interlace is much better, and it indeed has the icon look. The facilities are also good. I prefer this architect over the D'Leedon.

i noe wat u mean...those super level stack....i tink its a 2 level loft units rite? over my budget oredi....hehe

i am considering the 3+1 corner single loading 270degree view units....ard 2mil i tink....

Rysk
24-06-11, 12:40
I dun think FEO will be contented & just sell below 1000psf on average.. most likely go beyond 1000psf on average

devilplate
24-06-11, 12:41
I dun think FEO will be contented & just sell below 1000psf on average.. most likely go beyond 1000psf on average

i estimate 1k-1.3kpsf lor...

they will sell low flr no view facing units at ard 1kpsf...den progressively to even 1.4kpsf for best units

tats their strategy so far from wat i noticed

gn108
24-06-11, 13:37
FEO - you just love them when they bid for land near to your investment/residence property. You know they going to bump up your property value.
But for buyers - you have to pay premium.

Just look at what Horizon Residences did for those lucky investors in Peak@Balmeg also in D5.


i estimate 1k-1.3kpsf lor...

they will sell low flr no view facing units at ard 1kpsf...den progressively to even 1.4kpsf for best units

tats their strategy so far from wat i noticed

Jonathan0503
24-06-11, 13:37
Interlace is really a very nice project. Wait for the top stack, they call all the units in that container PH units. It has a much better view, as it is single loading, u have view on both sides. Liew himself bought one. I offered a cheque abt same price last year, rejected saying "not launch yet". The location of Interlace is much better, and it indeed has the icon look. The facilities are also good. I prefer this architect over the D'Leedon.

Was thinking of Interlace but just find that the location is really not very good leh.

Amenities not within walking distance and MRT station also quite far off...

Wild Falcon
24-06-11, 13:48
I like Reflections - most iconic and very near to the city.


Interlace is really a very nice project. Wait for the top stack, they call all the units in that container PH units. It has a much better view, as it is single loading, u have view on both sides. Liew himself bought one. I offered a cheque abt same price last year, rejected saying "not launch yet". The location of Interlace is much better, and it indeed has the icon look. The facilities are also good. I prefer this architect over the D'Leedon.

Jadey
24-06-11, 13:54
Was thinking of Interlace but just find that the location is really not very good leh.

Amenities not within walking distance and MRT station also quite far off...


Never like project that is next to highway. And with such design, I would be concern how the highway noise will resonate through and between the buildings. Also the connectivity to AYE towards the city is not very ideal.

KC76
24-06-11, 14:43
Never like project that is next to highway. And with such design, I would be concern how the highway noise will resonate through and between the buildings. Also the connectivity to AYE towards the city is not very ideal.

Anyone knows if the interlace showroom is open today? Wana go down take a look…

KC76
24-06-11, 14:45
I like Reflections - most iconic and very near to the city.
I like tOo but no amenities And mrt nearby.

solsys
24-06-11, 14:51
Impossible to see below S$1k psf for that area unless market tanks in the next few months.

If FEO comes out with the SOHO, townhouse concept, confirm premium pricing as I don't think vicinity has such concept yet.

Seletar has one, Woodlands has one..... West side not yet...

Look at the pricing of this concept, they can make profit easily and market to the richer segment, and especially so with townhouses and SOHO.

rattydrama
24-06-11, 16:39
FEO going for D5 now? How many projects FEO has in D5? Horizon residences and this one… what else?

DC33_2008
24-06-11, 16:44
Good for everyone.
FEO going for D5 now? How many projects FEO has in D5? Horizon residences and this one… what else?

rattydrama
24-06-11, 17:44
Good for everyone.

I guess all sea view and water view plots they are keen......

DC33_2008
24-06-11, 18:08
Indians like water body. There will be a high demand with people with deep pockets.
I guess all sea view and water view plots they are keen......

Rysk
26-06-11, 13:20
i estimate 1k-1.3kpsf lor...

they will sell low flr no view facing units at ard 1kpsf...den progressively to even 1.4kpsf for best units

tats their strategy so far from wat i noticed

Yeah.. tats their strategy..
One of tat is Vista Res.. transacted ard 1kpsf in 2009.. now ardy reached 1.5kpsf

kingkong1984
26-06-11, 16:10
Can sell from bottom up with biggest discounts But reduced as they go higher floors or can sell from top down with no discount, followed by more and more discounts. Either way, transactions up, value holds.

SpinCity
26-06-11, 17:09
Can sell from bottom up with biggest discounts But reduced as they go higher floors or can sell from top down with no discount, followed by more and more discounts. Either way, transactions up, value holds.

if sell from higher floors down with increasing discount, transaction volume may go up, but with price falling due to more discounts, value definitely goes down

kingkong1984
26-06-11, 17:23
if sell from higher floors down with increasing discount, transaction volume may go up, but with price falling due to more discounts, value definitely goes down
Possible right? Two ways, property wave go up and down. When best units launched first, u know it's going down.

Rysk
26-06-11, 17:27
Possible right? Two ways, property wave go up and down. When best units launched first, u know it's going down.

You are probably rite.. cos till now price is still climbing..

kingkong1984
26-06-11, 17:30
Really? Volume still climbing? If both go hand in hand, then u have another signal.

But if only price go up without volume... It's another sign altogether.

Rysk
26-06-11, 18:04
If both price & volume keep climbing.. that is the dangerous part.. both hand clap & the game will end faster..:D
If price climb slowly (regardless of volume).. it can last quite a period of time..

If the STI can climb with volume continuously.. yes it will climb much faster.. but the fall will be just a round the corner..:D

SpinCity
26-06-11, 18:07
Possible right? Two ways, property wave go up and down. When best units launched first, u know it's going down.

I just simply reply to your theory of selling from top floor with increasing discount, value will hold
For example, assuming for a 20-story development, the average selling prices of 1-5, 6-10, 11-15, 16-20 floors are 850psf, 900psf, 950psf, and 1000psf
if launch 16-20 floors first with no discount, 2nd phase 11-15 floors with 5% discount, 6-10 floors with 7% discount, and lastly 9% discount for 1-5 floors
Buyers will see the price of this development is actually going down gradually when new phases are released, how can the value hold?

As for property cycle up and down, this is a new variable that is not in your theory. In fact, with increasing discount, developers are actually signaling their desperation to sell , actually a negative sign
Even if you take property cycle into the equation, when it is on the up trend, no need to give more discount, when it is along the down trend, value won't hold anyway since it is in the down trend

SpinCity
26-06-11, 18:09
Possible right? Two ways, property wave go up and down. When best units launched first, u know it's going down.
duplicate deleted

kingkong1984
26-06-11, 19:22
I just simply reply to your theory of selling from top floor with increasing discount, value will hold
For example, assuming for a 20-story development, the average selling prices of 1-5, 6-10, 11-15, 16-20 floors are 850psf, 900psf, 950psf, and 1000psf
if launch 16-20 floors first with no discount, 2nd phase 11-15 floors with 5% discount, 6-10 floors with 7% discount, and lastly 9% discount for 1-5 floors
Buyers will see the price of this development is actually going down gradually when new phases are released, how can the value hold?

As for property cycle up and down, this is a new variable that is not in your theory. In fact, with increasing discount, developers are actually signaling their desperation to sell , actually a negative sign
Even if you take property cycle into the equation, when it is on the up trend, no need to give more discount, when it is along the down trend, value won't hold anyway since it is in the down trend

Take a spin..

inflate it right from the start and then deflate it.

U dun know the game?

Everything start with base price. Let me show how here.

Base price 10th floor. 1 million

less 1% each floor.

Base price 5th floor means less 5%

Base price 2nd floor (as it excludes PES) means less 8%

Then start the ball rolling.

each floor add 1% instead and offer the 10th floor as preview prices.

Hope u get it...

SpinCity
26-06-11, 21:13
Take a spin..

inflate it right from the start and then deflate it.

U dun know the game?

Everything start with base price. Let me show how here.

Base price 10th floor. 1 million

less 1% each floor.

Base price 5th floor means less 5%

Base price 2nd floor (as it excludes PES) means less 8%

Then start the ball rolling.

each floor add 1% instead and offer the 10th floor as preview prices.

Hope u get it...
You can spin spin spin
you can inflat defalt inflat
as much as you want, that's the developer's pricing strategy
But the simple fact is, if a developer launches from top floor (the highest psf) with increasing discount, what buyers will see is the price is getting lower and lower, even they are inflated and then deflated, and the value cannot hold
as what you suggested:
your base price for 10th to 1st floor:
1m, 999k, 998k, 997k, 996k, 995k, 994k, 993k, 992k, 991k
your preview price
1.01m, 1m, 999k, 998k, 997k, 996k, 995k, 994k, 993k, 992k,
your base price is actually irrelevant since only the developer itself knows about it and the buyers have no knowledge about it. what really matters is the preview price.
Now, the developer launch the 10th floor at 1.01m, as long as it can sell, fine
then the developer launch 9th floor at 1m. what the buyers will see? they see the developer give a discount and they start to wonder why? why the greedy developer does not increase the price like all the other bullish developers do? Is this developer a NPO? or the developer is bearish? maybe next phase the price will be even lower
Now, when the developer launch 8th floor at even lower 999k, this will confirm the buyers' guess that the price will just be lower and lower

Now, as a buyer, will you go in catch the falling knife at 8th floor, or wait and see? you make the call

As more and more caveats get lodged, what public will see is a ever lowering psf for this development

Sorry to say that it is a failed marketing strategy as it not only fails to create a hype, but make buyers think twice before buying

Can it hold the value? I seriously doubt

Put it in another word: have you ever seen a developer done this before?
This will only happen in certain industries, such as computer, mobile phone where the price is getting lower and lower ever

kingkong1984
26-06-11, 21:21
good reply...

and very good comments too..

agree that it is not likely in this industry.. I share on the possible strategies.

This do happen just that U need a serious external event to trigger this..

U see discounts after lehman saga right?

Anyway by all chances... start with list price (market price upon top) and reduce discounts are more likely. FEO style.

I like your post.. very serious but not personal.

SpinCity
26-06-11, 21:34
good reply...

and very good comments too..

agree that it is not likely in this industry.. I share on the possible strategies.

This do happen just that U need a serious external event to trigger this..

U see discounts after lehman saga right?

Anyway by all chances... start with list price (market price upon top) and reduce discounts are more likely. FEO style.

I like your post.. very serious but not personal.

Hahaha, didn't mean to be serious and glad that you don't take it personal
no offense was intended, if there is any bit, my sincere apology

kingkong1984
26-06-11, 22:09
Hahaha, didn't mean to be serious and glad that you don't take it personal
no offense was intended, if there is any bit, my sincere apology

No worries... I like to engage a debate based on arguments. U have my respect.

Cool :p

jonleelk
10-10-11, 20:25
Saw contractor erecting fencing around the site. FEO so fast preparing for launch liao?