View Full Version : Keppel Land to launch new project in Sengkang
http://www.straitstimes.com/Money/Story/STIStory_692941.html
Jul 21, 2011
Keppel Land to launch new project in Sengkang
PROPERTY firm Keppel Land will launch a new 620-unit Sengkang project by the end of this year, despite a cooling market.
The announcement yesterday came on the day the company said its second-quarter net profit fell 65 per cent, largely due to the adoption of a new accounting policy.
Earnings were $50.5 million for the three months up to June 30, down from $143.8 million a year earlier, while revenue was down 67 per cent to $104 million.
The accounting change requires developers to recognise revenue and profit only on completion of certain projects. In the past, developers had smoothed out their revenue streams from projects, progressively recognising income over the contract period as certain milestones were met.
Keppel also faced slower home sales in China after a raft of cooling measures. It sold 400 homes in China in the first half of this year, well under the 1,200 sold in the corresponding period last year, but the firm said it does not plan to cut prices.
Group chief executive Kevin Wong said while cooling measures here and the impending supply from government land sales dampened Singapore's private home sales in the first six months of the year, property in selected suburban regions and near MRT stations will still attract interest.
Healthy economic growth, a buoyant job market, ample liquidity, a low interest rate environment and the sustained influx of foreigners will also provide support for the residential market here, said chief financial officer Lim Kei Hin.
The company sold 160 homes here in the first half of the year, with a total value of $245 million.
Mr Wong said future investments - whether here or overseas, commercial or residential - will simply depend on opportunities. 'In China, we started doing some commercial developments. In the past, we had not gone in in any big way; we focused on residential because that was a market that we thought had the most profits.
'And of course, now with all these cooling measures, there are locations and opportunities where commercial markets will become attractive.'
Net profit for the six months fell 34 per cent to $134 million from a year earlier. Revenue rose 9 per cent to $462 million.
Earnings per share for the half-year dipped to 9.1 cents from 14 cents last year, while net asset value per share was $2.72 as of June 30, down from $2.85 as of Dec 31.
ESTHER TEO
Sengkang hasn't seen a launch near the met area in a while. So how much are they going to llaunch this one?
Guess would be 1K psf.. but oFcourse will depend on market sentiments.. things not looking too bright for developers these days..and by year end might be even worse..
devilplate
25-07-11, 10:16
Guess would be 1K psf.. but oFcourse will depend on market sentiments.. things not looking too bright for developers these days..and by year end might be even worse..
Expect similar psf as lakefront res
Guess would be 1K psf.. but oFcourse will depend on market sentiments.. things not looking too bright for developers these days..and by year end might be even worse..
1k psf for sengkang really takes the cake. Then again, how often have I and many others said that but still it ends up selling.
1k psf for sengkang really takes the cake. Then again, how often have I and many others said that but still it ends up selling.
"Keppel Land intends to launch a new 622-unit residential project in Sengkang during 2HFY11F. Keppel Land was the top bidder at S$502 psf for the government land sales site in March 2011. It is situated near Sengkang MRT in the north-east of Singapore. Our ASP assumption for this project is S$1,100 psf. Within the vicinity, resale prices of Compass Heights (8 years old) averaged S$796 psf whilst The Quartz, a recently completed project one MRT station away, was transacted at S$963 psf. We believe a 10% premium over The Quartz is deserving with full amenities including a shopping mall - Compass Point within walking distance to the Sengkang project. "
I dont think they will get 1.1 K, they expect.. but they will push it.
Dont think will even visit showflat.. too expensive for me :scared-3:
If they market this project the way Thomson G is marketed, it will also attract a specific group of potential buyers. It really depends on marketing. $1100 psf in Seng Kang is only a matter of time. Maybe with this project, its just earlier rather than later. :o Compass Ht will be a huge beneficiary of this launch along with the many HDB nearby. :o
If they market this project the way Thomson G is marketed, it will also attract a specific group of potential buyers. It really depends on marketing. $1100 psf in Seng Kang is only a matter of time. Maybe with this project, its just earlier rather than later. :o Compass Ht will be a huge beneficiary of this launch along with the many HDB nearby. :o
CM4: otherwise flippers would have been already in action on compass height..
I think compass Ht is suffering cause there hasn't been any condo launch nearby..else price of Compass Ht is not justified to be this low, compared to other recent launch in worse locations...
Only if one can buy Compass and can wait for 4 yr to sell :D
Wild Falcon
25-07-11, 11:36
Lakefront somehow sounds better than Sengkang. I would be shocked if its indeed $1100psf....
Expect similar psf as lakefront res
Lakefront somehow sounds better than Sengkang. I would be shocked if its indeed $1100psf....Yes sounds better but in terms of time to reach the city, think Seng Kang might be a little faster! Anyway, not everybody works in the city! :o KPE brings Seng Kang residents to Nicoll Highway in less than 10 mins while PIE takes about 15 mins to 20 mins for residents from the west to just reach city. Not to mention about the traffic situation during peak hours. :p
Lakefront somehow sounds better than Sengkang. I would be shocked if its indeed $1100psf....
anything less then 1K would be shocking..
Think even their breakeven will be close to 900psf 502(land)+350(dev)+100(+++) ..so certainly will be arnd 1.1 k psf for justifying development..
My guess they will make small 1/2 bedder to make quantum comfy for upgraders..
Let's see how many want to tradeoff space of HDB to get into smaller pigeonhole..
Many developers were vying for this land in March 2011, http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_645435.html.
All of the HDBs near it would have exceeded the 5 years MOP by the time the project TOP. If the land is really within 5 min walk of the Seng Kang MRT, $1100 psf is piece of cake to the upgraders, as there are no much land left around the MRT and town center for new condos.
Agreed. $1100 psf is considered reasonable. Even if they launch at $1200 psf, some people will still bite the bullet coz its really a good deal! :D
linchong84
25-07-11, 15:12
Why do some of you say 1k psf takes the cake? H2O (360psf land bid) which is in sengkang beside LRT station is selling at 950-1100psf.. So why will keppel launch this MRT site lower than that?!
Fair price will be 1100-1250psf.. Of course, this is assuming H2O's price is fair.. hahaha..
devilplate
25-07-11, 15:19
Why do some of you say 1k psf takes the cake? H2O (360psf land bid) which is in sengkang beside LRT station is selling at 950-1100psf.. So why will keppel launch this MRT site lower than that?!
Fair price will be 1100-1250psf.. Of course, this is assuming H2O's price is fair.. hahaha..
Ya lor....i tink ave 1.1kpsf will b sell out....since cmi terrasse oredi go for 1100psf ave.....
I expect keppel to follow lakefront sizes as well....or even slightly smaller
wow ppl so confident. keppel senkang 1100 considered reasonable/cheap :)
like that capitaland bishan how ? 1500 considered reasonable or not ? ;)
linchong84
25-07-11, 16:09
wow ppl so confident. keppel senkang 1100 considered reasonable/cheap :)
like that capitaland bishan how ? 1500 considered reasonable or not ? ;)
So far i've 2 friends who are aiming this and they expected the price to be 1100psf for 3 bedder, and they will swoop without question.. They've seen terrasse and 1 of them nearly buy it.. To them, if terrasse can be 1100psf, then this sengkang mrt project is definitely reasonable at 1100psf or slightly higher.. End of day, this is afterall an MRT site..
devilplate
25-07-11, 17:15
wow ppl so confident. keppel senkang 1100 considered reasonable/cheap :)
like that capitaland bishan how ? 1500 considered reasonable or not ? ;)
Nope...bishan at 1500psf is expensive:p
Shd b 1300psf to be on par wif ascentia sky....but den if launch mm sizes, 1400-1500psf possible lor
Now i start to tink ascentia is cheap liao...whahaha....but den i still cant get over the layout....
Nope...bishan at 1500psf is expensive:p
Shd b 1300psf to be on par wif ascentia sky....but den if launch mm sizes, 1400-1500psf possible lor
Now i start to tink ascentia is cheap liao...whahaha....but den i still cant get over the layout....
How come justifying by comparing with other launch in SG.. What about fundamentals?
- Rental returns?
- Capital appreciation?
Will these houses able to fetch rentals to justify the pricing? or everyone is just looking for a "greater fool"? :D
devilplate
25-07-11, 17:46
How come justifying by comparing with other launch in SG.. What about fundamentals?
- Rental returns?
- Capital appreciation?
Will these houses able to fetch rentals to justify the pricing? or everyone is just looking for a "greater fool"? :D
Dun ask me y....suddenly ascentia sky project pop up in my mind lor....hehe
Goto compare new wif new rite to make it more meaningful? Bishan central dun hf new projects mah...
Dun ask me y....suddenly ascentia sky project pop up in my mind lor....hehe
Goto compare new wif new rite to make it more meaningful? Bishan central dun hf new projects mah...
But can Sengkang rental justify these prices? 1.1 K psf..one would need 4K rental to just cover mortgage for 2+1..
Think it would be only upgraders who would be interested.
devilplate
25-07-11, 18:27
But can Sengkang rental justify these prices? 1.1 K psf..one would need 4K rental to just cover mortgage for 2+1..
Think it would be only upgraders who would be interested.
Depend on quantum...2bdr prolly 7xxsqft and launch at ard 850k? Possible to fetch 3.2-3.5k if based on kovan melody
flagship74
25-07-11, 18:35
1K psf for such a ulu place is really madness!!:D
Nope...bishan at 1500psf is expensive:p
Shd b 1300psf to be on par wif ascentia sky....but den if launch mm sizes, 1400-1500psf possible lor
Now i start to tink ascentia is cheap liao...whahaha....but den i still cant get over the layout....
Bishan got shopping center wor, redhill got nothing, some more got MRT track noise. Redhill drive to town nearer though. Ascentia sky 1300 only huh ? Like that how can sengkang 1100 be "reasonable" ?
But can Sengkang rental justify these prices? 1.1 K psf..one would need 4K rental to just cover mortgage for 2+1..
Think it would be only upgraders who would be interested.A 3 bedder at kovan residence is asking $4.8k/mth. SK $4.2k is decent. :D Usually rental will follow price No one in their right mind will rent at 0.5% rental yield. :p
A 3 bedder at kovan residence is asking $4.8k/mth. SK $4.2k is decent. :D Usually rental will follow price No one in their right mind will rent at 0.5% rental yield. :p
CCR rental yield at 2%, why? Nobody is "right mind" would rent at 2% when can get 4% rental returns like OCR condos..
With the 2013-2014 supply and no economic recovery in sight.. how many new demand is there?
And If these OCR rentals try competing with CCR rentals, what will people choose?
Prices dont dictate rent , demand does.. simple principal is demand and supply..
Launch at more than $1200kpsf will make alot of projects look cheap.
No view but only MRT.
This will be interesting.
linchong84
25-07-11, 22:16
Launch at more than $1200kpsf will make alot of projects look cheap.
No view but only MRT.
This will be interesting.
manhatten no view also got people bite at 14xxpsf..
i guess normal sized units won't reach 1.2k psf.. Pool facing 3 compact, 3 bedder onwards should be 1.15 psf.. HDB facing 1.05k psf.. 1 bedder 1.3k psf, 2 bedder 1.2k psf..
i should say 1k psf for 3 bedder takes the cake. if i remember correctly H20 3 bedder around 920 psf?
anyway, who cares what we think anyway, when the project launches, there'll still be lemmings who will cheong for it!
flagship74
25-07-11, 23:36
I smell the scent of CM5 soon....:D
A 3 bedder at kovan residence is asking $4.8k/mth. SK $4.2k is decent. :D Usually rental will follow price No one in their right mind will rent at 0.5% rental yield. :p
is 4.8k done deal or landlord asking?
manhatten no view also got people bite at 14xxpsf..
i guess normal sized units won't reach 1.2k psf.. Pool facing 3 compact, 3 bedder onwards should be 1.15 psf.. HDB facing 1.05k psf.. 1 bedder 1.3k psf, 2 bedder 1.2k psf..
What would be selling point for sengkang? to me Sengkang seems like quite HDB estate..
Nothing like CBP/4th univ. which is pushing Simei pricing...
but anyway sales are real slow for My Manhattan..
is 4.8k done deal or landlord asking?Not sure any closed deals yet but if every landlord asking $4.8k, tenants may just oblige. Anyway, SK can also begin with asking 4.2k and test market first. :o Furthermore, its another 3 years if construction begins soon and by then, rental market would have changed... :p
thomastansb
26-07-11, 13:21
If all landlords asking 4.8k but no deal, how? Definitely, 1 will accept 4.5k deal and some will start accepting 4.3, 4.1k etc. Really depends on holding power and the demand of rental and location etc..
Not sure any closed deals yet but if every landlord asking $4.8k, tenants may just oblige. Anyway, SK can also begin with asking 4.2k and test market first. :o Furthermore, its another 3 years if construction begins soon and by then, rental market would have changed... :p
Not sure any closed deals yet but if every landlord asking $4.8k, tenants may just oblige. Anyway, SK can also begin with asking 4.2k and test market first. :o Furthermore, its another 3 years if construction begins soon and by then, rental market would have changed... :p
Kovan residences will be competing for same tenants pool? newly topped..same price..
..how can dictate? Can keep empty units and wait and wait?
8@W also TOP soon..gonna suck some tenats pool..
How LL can dictate if tenant pool is same and supply keep coming?:doh:
linchong84
26-07-11, 16:49
What would be selling point for sengkang? to me Sengkang seems like quite HDB estate..
Nothing like CBP/4th univ. which is pushing Simei pricing...
but anyway sales are real slow for My Manhattan..
Sengkang's selling point is some people simply just like to stay there (ie HDB upgraders).. It's more for self-stay rather than rental/investment.. The HDB resales near MRT in that area should be around 600k or so.. So you x2, you will get 1.2-1.3mil for the 3 bedder..
If you ask me, i feel the 1 and 2 bedders are not worth getting because if i'm a tenant, i rather rent a cheaper unit in compass heights haha..
Compass heights used to be 7xx-8xxpsf few months back.. after this keppel site is launched, sure will get pull up a bit..
Sengkang's selling point is some people simply just like to stay there (ie HDB upgraders).. It's more for self-stay rather than rental/investment.. The HDB resales near MRT in that area should be around 600k or so.. So you x2, you will get 1.2-1.3mil for the 3 bedder..
If you ask me, i feel the 1 and 2 bedders are not worth getting because if i'm a tenant, i rather rent a cheaper unit in compass heights haha..
Compass heights used to be 7xx-8xxpsf few months back.. after this keppel site is launched, sure will get pull up a bit..
How come these upgraders never buy Compass Ht ?
If they get 600K for HDB..then 7xx-8xx.. then < 900K can get Compass..
Or these upgraders like to buy expensive launch only :doh:
linchong84
26-07-11, 17:33
How come these upgraders never buy Compass Ht ?
If they get 600K for HDB..then 7xx-8xx.. then < 900K can get Compass..
Or these upgraders like to buy expensive launch only :doh:
compass heights quantum bigger.. around 10 year old.. But take lift downstairs and they are at MRT station already haha.. Super convenient.. Good for rental cos normally tenants don't really mind new or old development.. As long as dun look cui can already..
Really must depend on the size of this new launch. If all MM and few 3 or 4 bedders, then it doesn't really appeal to the nearby HDB upgraders who probably have a 3 or 4 member family with a need for 3 bedders. Wait for the launch first. :o
How come these upgraders never buy Compass Ht ?
If they get 600K for HDB..then 7xx-8xx.. then < 900K can get Compass..
Or these upgraders like to buy expensive launch only :doh:
There are people who just like things new... and paying big $ for it.
If all landlords asking 4.8k but no deal, how? Definitely, 1 will accept 4.5k deal and some will start accepting 4.3, 4.1k etc. Really depends on holding power and the demand of rental and location etc..
low 4+k is probably reasonable, $3+k are the older condos, and $2+k are for HDBs. Someone in this forum mentioned that a 3rm flat can fetch $2.2k of rental.
low 4+k is probably reasonable, $3+k are the older condos, and $2+k are for HDBs. Someone in this forum mentioned that a 3rm flat can fetch $2.2k of rental.If 3 room can fetch 2.2k, EA can fetch 3k or more? Wow! Even better than most OCR MM units. :tongue3:
devilplate
27-07-11, 10:26
If 3 room can fetch 2.2k, EA can fetch 3k or more? Wow! Even better than most OCR MM units. :tongue3:
not IF.....i oredi noe true cases! 2.5k 3rm flat in tanjong pagar/chinatown. other areas around queenstown/kallang/lavender hit 2k-2.3k for 3rm consistently
as u can see....vy low supply in those areas....tats y
3rm rental sets the standard for the other segments.
not IF.....i oredi noe true cases! 2.5k 3rm flat in tanjong pagar/chinatown. other areas around queenstown/kallang/lavender hit 2k-2.3k for 3rm consistently
as u can see....vy low supply in those areas....tats yAll the more must keep HDB man! If HDB can generate more rental income than OCR MM units and were bought at half the price of a current MM unit, rental yields plus absolute rental income all outweighs the MM units. :o
devilplate
28-07-11, 09:49
All the more must keep HDB man! If HDB can generate more rental income than OCR MM units and were bought at half the price of a current MM unit, rental yields plus absolute rental income all outweighs the MM units. :o
if only u got a 3rm flat....4rm flat near mrt rental yield still not bad but not those 5rm , EA, EM
and u can only hf one HDB whereas u can buy unlimited MMMMMMMM:D
if only u got a 3rm flat....4rm flat near mrt rental yield still not bad but not those 5rm , EA, EM
and u can only hf one HDB whereas u can buy unlimited MMMMMMMM:DLOL... keep HDB for that initial $200+k then buy unlimited MMMMMMMMM... hahaha! :sleep:
kingkong1984
28-07-11, 10:13
LOL... keep HDB for that initial $200+k then buy unlimited MMMMMMMMM... hahaha! :sleep:
pretty good advice.
one fully paid so is cash cow.
MM 50% financed by tenants and 50% financed by HDB rent. Payoff pretty fast.
pretty good advice.
one fully paid so is cash cow.
MM 50% financed by tenants and 50% financed by HDB rent. Payoff pretty fast.Or MM 100% paid by tenants while HDB rent will finance the house that you currently live in... :D So will govt take away this cash cow? Or impose more restrictions on how you milk this cow? Recently got some news on this cow leh! Hmmm... :scared-3:
not IF.....i oredi noe true cases! 2.5k 3rm flat in tanjong pagar/chinatown. other areas around queenstown/kallang/lavender hit 2k-2.3k for 3rm consistently
as u can see....vy low supply in those areas....tats y
Hdb at red hill mrt near ascentia sky already asking 3.5k for 5rm!
Or MM 100% paid by tenants while HDB rent will finance the house that you currently live in... :D So will govt take away this cash cow? Or impose more restrictions on how you milk this cow? Recently got some news on this cow leh! Hmmm... :scared-3:
HDB will continue to be allowed to be rented out. We need a lot of foreign blue collar workers for our industries, IRs etc. They can't possibly be paid $5k a month and spend $2.5k renting an MM (not enough units anyway) or 2-bedroom condos to share. However if they are paid $1.5k, then they can spend $500 to rent a HDB bedroom.
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