CDL makes top bid for Buangkok condo plot

[reporter2]

http://www.businesstimes.com.sg/archive/wednesday/premium/singapore/cdl-makes-top-bid-buangkok-condo-plot

Published June 13, 2012

CDL makes top bid for Buangkok condo plot

Its $508.22 psf ppr bid beats $320-$500 psf ppr forecasts

By Kalpana Rashiwala


THE state tender for a 99-year-leasehold private condo plot about 100m from Buangkok MRT Station has fetched a top bid above expectations.

However, a participation rate of just five bids could point to the playing field in the broader Punggol, Sengkang and Buangkok vicinity getting crowded, suggest some market watchers.

Developers may also be saving their bullets for tenders for choicer sites - at Farrer Drive and Pheng Geck Avenue (near Potong Pasir MRT Station) - closing later this month.

At yesterday's Buangkok tender, City Developments Ltd (CDL) unit White Haven Properties bid $301 million or $508.22 per square foot per plot ratio (psf ppr), slightly exceeding the upper range of forecasts - $320-$500 psf ppr - for the site's top bid made by property consultants polled by BT when the plot was released in April. The plot can potentially yield about 600 homes.

CDL's bid yesterday was 3.7 per cent higher than the second highest offer of $490.12 psf ppr from a tie-up between Frasers Centrepoint unit Opal Star and Lum Chang's Binjai Holdings - which in turn was followed closely by UOL unit Flamegold's offer of nearly $481 psf ppr.

Incidentally, White Haven was the second highest bidder a fortnight ago for a 99-year condo site near Sengkang MRT Station, one stop away. That tender too drew just five bids, with the winning bid from EL Development of nearly $528 psf ppr - higher than yesterday's top bid for the Buangkok plot.

Some market watchers note that while Sengkang is further from town, it boasts superior amenities, most notably Compass Point mall.

Credo Real Estate executive director Ong Teck Hui said bids at yesterday's Buangkok tender were still firm. "The top three bidders probably see strong demand for this site, being the first new private residential site near Buangkok MRT Station," he added.

"However, the (broader) Sengkang/Punggol area has a lot of new projects, some being marketed and others that will come up on sites sold in the past year. So the playing field is quite crowded," Mr Ong said.

This could well explain the similar outcome for the Sengkang tender, which closed on May 31.

Agreeing, SLP International executive director Nicholas Mak said he had expected the Buangkok and Sengkang sites, which are located near MRT stations, to have fetched around 7-10 bids each.

CBRE executive director Li Hiaw Ho estimates CDL's break-even cost for a new project on the Buangkok site at $900-950 psf. Pricing for the project would be similar to that of The Luxurie, near Sengkang MRT Station, which is selling at $1,040 psf on average, he added.

CDL's spokesman said yesterday that it plans to build a project of about 16 storeys on the Buangkok plot, adding that it sees "great potential and demand for this project in this burgeoning estate". It is familiar with the vicinity; it is developing H20 Residences at Sengkang West Avenue/ Fernvale Link.

[reporter2]

http://www.straitstimes.com/Money/Story/STIStory_810253.html

Buangkok residential site draws five bids

Bid figures reflect confidence in projects near MRT stations: Analysts

Published on Jun 13, 2012

By AMANDA TAN


A RESIDENTIAL site near Buangkok MRT station had drawn five decent bids by the time the tender closed yesterday.

Market experts say although the number of bids was lower than expected, the healthy bid figures reflect developers' confidence in sites near MRT stations.

The top bid of $301 million was submitted by White Haven Properties, a unit of City Developments.

It translates to a price of $508 per sq ft per plot ratio (psf ppr).

The second bid of $290.3 million, or $490 psf ppr, was offered jointly by Opal Star and Binjai Holdings. Opal Star is a unit of Frasers Centrepoint.

Vantage Properties put in the lowest bid of $226 million, or about $382 psf ppr.

Even though experts earlier expected the site to draw between six and 12 bids, the bids that have come in are not shabby.

'Although the number of bidders had declined from the tenders of other residential sites near MRT stations, the land price has not fallen,' said Mr Nicholas Mak, research head at SLP International Property Consultancy.

The highest bid is 3.69 per cent higher than the second bid, he said.

CBRE Research executive director Li Hiaw Ho said: 'The quantum of the bids shows developers' confidence that suburban projects located near MRT stations will do well.'

The 18,341 sq m plot at Buangkok Drive can yield 580 units. It has a lease period of 99 years.

Mr Li noted that the site is a short walk to Buangkok MRT station. Convenience stores and a food court are also close by.

HDB flats, executive condo Esparina Residences and private condo The Quartz are in the area.

Ms Chia Siew Chuin, director of research and advisory at Colliers International, said HDB upgraders could consider upcoming units at the plot, 'given the strong HDB resale prices in the vicinity'.

She pointed out that the median resale price of a Sengkang five-room flat was $512,600 in the first quarter of the year.

Consultants said that the top bid of $301 million works out to a breakeven cost of between $900 and $950 psf.

City Developments said it plans to build a high-rise residential development of approximately 16 storeys. The company added it is familiar with the vicinity and noted that its upcoming 521-unit H2O Residences at Sengkang West Avenue/Fernvale Link, has sold 86 per cent of the 450 units released.

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[azeoprop]

So this one will be called CO2 residences? :rolleyes:

[ysyap]

H2O is not at Buangkok area lah... this one should be called Ballerina... Lol! Well I just feel that Buangkok is already so so crowded. It is one thing to lose all the greenary for nice kite flying, its another thing to have so many concrete blocks filling up those plots of land! :scared-4: