dtrax
03-02-12, 03:42
Top bid values D10 site at $880.74 psf ppr, to be sold at $1,500-1,600 psf
By KALPANA RASHIWALA
http://www.businesstimes.com.sg/mnt/media/image/launched/2012-02-03/krtender3.jpg
(SINGAPORE) A plum 99-year leasehold private condo plot at Jervois Road drew a whopping 17 bids yesterday, attesting to the site's choice location and relatively affordable investment size for the site's development.
The top bid for the District 10 plot that could now be set for about 130 homes was $118.9 million or $880.74 per square foot per plot ratio (psf ppr) from Singapore Land unit SL Development. This was 8.1 per cent higher than the next highest offer of $814.81 psf ppr from Chng Gim Huat Group.
The 17 bids for the plot next to the Chatsworth Park Good Class Bungalow Area included two identical offers of $101 million or $748.14 psf ppr - from Kheng Leong unit Peak Living and Hong Realty.
The lowest bid came from JVS Capital at $71.8 million or $531.85 psf ppr.
There had been a wide variation of forecasts on the top bid for the District 10 site from property consultants - ranging from $630 to $950 psf ppr - when the site was launched on Dec 22, two weeks after the government rolled out the additional buyer's stamp duty (ABSD).
Many analysts used as their reference point the $754 psf ppr top bid by City Developments in December for a plot at Alexandra Road (next to Ascentia Sky condo project, near Redhill MRT Station and about 550 metres from the Jervois Road plot).
One school of thought places the Jervois plot as superior as it is a prime district 10 plot, next to a GCB Area and near the Malaysian High Commission. However, others reason that the Alexandra site, though in district 3, may have an advantage as it is closer to an MRT station and amenities.
Donald Han, special advisor at HSR Property Group, said: 'Despite 17 bids, the top price was below my expectation of $950 psf ppr. Developers are factoring in the risks created by the five-year limit to develop and sell all units in the project if they don't want to pay the 10 per cent ABSD. As well, interest has thinned from foreign buyers, who have to pay 10 per cent ABSD,' he added.
Michael Ng, group general manager of Singapore Land and its parent UIC, said yesterday: 'Our beakeven cost would be about $1,300 psf and we would aim to sell at around $1,500-1,600 psf on average. This would be fairly reasonable for a condo in the Jervois/Bishopsgate locale near embassies.
'This site is next to a cul de sac and is set amidst lush greenery and mature trees.' The project may be launched by year end.
He added that SingLand has been on the lookout for choice residential sites but such plots in prime districts are hard to come by at reasonable prices. 'Most of them are collective sale sites which would generally be priced at $1,500 psf ppr and upwards.'
SingLand's proposed scheme on the Jervois plot is a five-storey project of about 130-140 units - comprising mostly one and two-bedroom apartments along with some three bedders. 'We'll also include about seven to eight strata terrace houses - probably three storeys high with a basement. We can build these landed units on the triangular end of this site, which will leave a more regular-shaped plot for the apartments,' said Mr Ng.
Commenting on the strong turnout of 17 bidders at yesterday's tender, Credo Real Estate executive director Ong Teck Hui said: 'The prime residential market may be struggling but there's obviously no shortage of interest when an attractive prime district site is put on the market. Enthusiasm in this tender rivals that for the Bishan Street 14 site which attracted 19 bidders and a top bid of $869 psf ppr a year ago.'
Adding to the site's appeal is its manageable size, as reflected in the $118.9 million top bid, making it a relatively less risky project than the typical large Government Land Sale sites, he added.
CBRE executive director Li Hiaw Ho noted that based on URA sales data for October-December 2011, a small-format unit in Nathan Residences (under construction) was sold at $1,655 psf while units in One Jervois and Sheares Ville (completed in 2003) were sold between $1,450 psf and $1,560 psf. 'These three projects have a freehold tenure. We expect that units on the new 99-year leasehold site should be able to command a premium because of their rarity, and therefore, may be able to fetch $1,600 psf to $1,800 psf when launched.'
Others who took part in yesterday's tender include Sin Heng Chan unit Strategic Developments, a consortium involving OKP Land, BBR Property, EL Development, Lucrum Development, Lian Beng Group unit Luxe Development and Mezzo Development.
Source: BT
By KALPANA RASHIWALA
http://www.businesstimes.com.sg/mnt/media/image/launched/2012-02-03/krtender3.jpg
(SINGAPORE) A plum 99-year leasehold private condo plot at Jervois Road drew a whopping 17 bids yesterday, attesting to the site's choice location and relatively affordable investment size for the site's development.
The top bid for the District 10 plot that could now be set for about 130 homes was $118.9 million or $880.74 per square foot per plot ratio (psf ppr) from Singapore Land unit SL Development. This was 8.1 per cent higher than the next highest offer of $814.81 psf ppr from Chng Gim Huat Group.
The 17 bids for the plot next to the Chatsworth Park Good Class Bungalow Area included two identical offers of $101 million or $748.14 psf ppr - from Kheng Leong unit Peak Living and Hong Realty.
The lowest bid came from JVS Capital at $71.8 million or $531.85 psf ppr.
There had been a wide variation of forecasts on the top bid for the District 10 site from property consultants - ranging from $630 to $950 psf ppr - when the site was launched on Dec 22, two weeks after the government rolled out the additional buyer's stamp duty (ABSD).
Many analysts used as their reference point the $754 psf ppr top bid by City Developments in December for a plot at Alexandra Road (next to Ascentia Sky condo project, near Redhill MRT Station and about 550 metres from the Jervois Road plot).
One school of thought places the Jervois plot as superior as it is a prime district 10 plot, next to a GCB Area and near the Malaysian High Commission. However, others reason that the Alexandra site, though in district 3, may have an advantage as it is closer to an MRT station and amenities.
Donald Han, special advisor at HSR Property Group, said: 'Despite 17 bids, the top price was below my expectation of $950 psf ppr. Developers are factoring in the risks created by the five-year limit to develop and sell all units in the project if they don't want to pay the 10 per cent ABSD. As well, interest has thinned from foreign buyers, who have to pay 10 per cent ABSD,' he added.
Michael Ng, group general manager of Singapore Land and its parent UIC, said yesterday: 'Our beakeven cost would be about $1,300 psf and we would aim to sell at around $1,500-1,600 psf on average. This would be fairly reasonable for a condo in the Jervois/Bishopsgate locale near embassies.
'This site is next to a cul de sac and is set amidst lush greenery and mature trees.' The project may be launched by year end.
He added that SingLand has been on the lookout for choice residential sites but such plots in prime districts are hard to come by at reasonable prices. 'Most of them are collective sale sites which would generally be priced at $1,500 psf ppr and upwards.'
SingLand's proposed scheme on the Jervois plot is a five-storey project of about 130-140 units - comprising mostly one and two-bedroom apartments along with some three bedders. 'We'll also include about seven to eight strata terrace houses - probably three storeys high with a basement. We can build these landed units on the triangular end of this site, which will leave a more regular-shaped plot for the apartments,' said Mr Ng.
Commenting on the strong turnout of 17 bidders at yesterday's tender, Credo Real Estate executive director Ong Teck Hui said: 'The prime residential market may be struggling but there's obviously no shortage of interest when an attractive prime district site is put on the market. Enthusiasm in this tender rivals that for the Bishan Street 14 site which attracted 19 bidders and a top bid of $869 psf ppr a year ago.'
Adding to the site's appeal is its manageable size, as reflected in the $118.9 million top bid, making it a relatively less risky project than the typical large Government Land Sale sites, he added.
CBRE executive director Li Hiaw Ho noted that based on URA sales data for October-December 2011, a small-format unit in Nathan Residences (under construction) was sold at $1,655 psf while units in One Jervois and Sheares Ville (completed in 2003) were sold between $1,450 psf and $1,560 psf. 'These three projects have a freehold tenure. We expect that units on the new 99-year leasehold site should be able to command a premium because of their rarity, and therefore, may be able to fetch $1,600 psf to $1,800 psf when launched.'
Others who took part in yesterday's tender include Sin Heng Chan unit Strategic Developments, a consortium involving OKP Land, BBR Property, EL Development, Lucrum Development, Lian Beng Group unit Luxe Development and Mezzo Development.
Source: BT