reporter2
06-03-20, 13:41
Top bids for Canberra private housing sites below expectations
However, EC site in Fernvale Lane draws healthier participation rate, with top bid within expectations
Wed, Mar 04, 2020
KALPANA RASHIWALA
THE latest 99-year leasehold residential state land tenders which closed on Tuesday have drawn a mixed bag of results.
Top bids for a pair of adjoining private housing sites in Canberra Drive, a stone's throw from Canberra MRT station in Singapore's north, came in below forecasts by property consultants polled by The Business Times prior to the closing of the tender at noon, on Tuesday. The number of bids received was also softer than expected.
On the other hand, a plot for executive condominium (EC) housing development along Fernvale Lane in the Sengkang area drew a healthier participation rate and with the top bid within expectations.
Market watchers commented that despite brisk sales at recent property launches, developers are adopting a more cautious outlook given the current oversupply of private homes and expected weaker economic conditions amid a global escalation of the Covid-19 outbreak.
However, in the EC segment - ECs are public-private housing hybrid - the supply of new projects is relatively more limited. "There are only two in the launch pipeline (following the launch of Ola), assuring the successful bidder of more manageable competition," suggested JLL's senior director of research and consultancy, Ong Teck Hui.
Canberra Drive (Parcel A), the smaller of the pair of land parcels, drew five bids, with the highest offer of nearly S$129.20 million or about S$644 per square foot per plot ratio (psf ppr) from Oasis Development, controlled by boutique developer JBE Holdings Group. Of the five bidders who bid for this plot, JBE was the only one that did not bid for the next-door Parcel B.
JBE Holdings Group is controlled by Patrick Lam, who hails from Hong Kong but is a Singapore permanent resident. "Our proposed scheme for the site is a five-storey condo with about 220 units. We'll have one to four-bedroom units but mostly they will be two and three-bedders. We hope to launch the project by the end of this year," he told BT.
The top bid was 3.4 per cent higher than the second highest bid from a tie-up between MCC Land (Singapore) and Greatview Group, bidding at S$124.9 million or S$622 psf ppr. Also bidding for the plot were a UOL-led consortium; and a tie-up that includes Chip Eng Seng.
The lowest bid, S$568 psf ppr, was from CSC Land Group (Singapore).
The Canberra Drive (Parcel B) site next door drew four bids, the highest from United Venture Development (2020) - controlled by UOL Group, United Industrial Corporation and Kheng Leong Company. It bid about S$650 psf ppr or 4.8 per cent above the second highest bid. CSC Land placed the lowest bid of nearly S$578 psf ppr.
UOL Group's CEO, Liam Wee Sin, said: "Being the larger of the two sites, this plot gives us the opportunity to create an exciting product with about 450 units that is within walking distance to the newly-opened Canberra MRT.
"The recent URA Masterplan envisioned the Northern Region to be well-connected, including more emphasis to create one-stop hubs such as Bukit Canberra and Canberra Plaza. We believe that there will be healthy demand from the large catchment of owner-occupiers and potential HDB upgraders due to the increasing popularity of Canberra as a new integrated estate."
The Fernvale Lane EC site fetched seven bids. Frasers Property was the highest bidder at about S$555 psf ppr, just 0.5 per cent more than the second highest bid of S$552 psf ppr, which came from a partnership between Sing Holdings Residential and MCC Land (Singapore). The lowest bid of about S$500 psf ppr was by a consortium led by Evia Real Estate.
JLL's Mr Ong commented that although the top bid for the Fernvale Lane EC site was within expectations, it was about 3.6 per cent lower than that of the Anchorvale Crescent EC site sold in September 2018, (which is being developed into Ola) at S$576 psf ppr.
The Fernvale Lane EC site is across the road from shopping mall Greenwich V. The site is near Fernvale LRT station, The Seletar Mall, Fernvale Primary School and Sengkang Green Primary School.
Frasers Property Singapore's executive chairman of commercial, development and residential, Koh Teck Chuan, said the group plans to build a 500-unit condo project.
Cushman and Wakefield's Christine Li estimated the breakeven cost for the Fernvale EC site at around S$966 psf and the estimated selling price could start from S$1,060-1,110 psf.
She estimated the breakeven cost for the Canberra Drive parcels at S$1,140 psf, and the estimated selling prices could be in the range of S$1,250-1,300 psf.
Noting that the respective top bids for both Canberra Drive plots came in below expectation, Ms Li said: "This could mean that developers are prepared for either higher construction costs or slightly lower selling prices in the event that prices do not match up to expectation due to the implications from the virus outbreak. Material costs have shot up quite significantly recently due to the global supply chain disruption and there could be construction delays amid a manpower crunch. Developers might be looking for a bigger buffer for their projects in anticipation of these events."
However, EC site in Fernvale Lane draws healthier participation rate, with top bid within expectations
Wed, Mar 04, 2020
KALPANA RASHIWALA
THE latest 99-year leasehold residential state land tenders which closed on Tuesday have drawn a mixed bag of results.
Top bids for a pair of adjoining private housing sites in Canberra Drive, a stone's throw from Canberra MRT station in Singapore's north, came in below forecasts by property consultants polled by The Business Times prior to the closing of the tender at noon, on Tuesday. The number of bids received was also softer than expected.
On the other hand, a plot for executive condominium (EC) housing development along Fernvale Lane in the Sengkang area drew a healthier participation rate and with the top bid within expectations.
Market watchers commented that despite brisk sales at recent property launches, developers are adopting a more cautious outlook given the current oversupply of private homes and expected weaker economic conditions amid a global escalation of the Covid-19 outbreak.
However, in the EC segment - ECs are public-private housing hybrid - the supply of new projects is relatively more limited. "There are only two in the launch pipeline (following the launch of Ola), assuring the successful bidder of more manageable competition," suggested JLL's senior director of research and consultancy, Ong Teck Hui.
Canberra Drive (Parcel A), the smaller of the pair of land parcels, drew five bids, with the highest offer of nearly S$129.20 million or about S$644 per square foot per plot ratio (psf ppr) from Oasis Development, controlled by boutique developer JBE Holdings Group. Of the five bidders who bid for this plot, JBE was the only one that did not bid for the next-door Parcel B.
JBE Holdings Group is controlled by Patrick Lam, who hails from Hong Kong but is a Singapore permanent resident. "Our proposed scheme for the site is a five-storey condo with about 220 units. We'll have one to four-bedroom units but mostly they will be two and three-bedders. We hope to launch the project by the end of this year," he told BT.
The top bid was 3.4 per cent higher than the second highest bid from a tie-up between MCC Land (Singapore) and Greatview Group, bidding at S$124.9 million or S$622 psf ppr. Also bidding for the plot were a UOL-led consortium; and a tie-up that includes Chip Eng Seng.
The lowest bid, S$568 psf ppr, was from CSC Land Group (Singapore).
The Canberra Drive (Parcel B) site next door drew four bids, the highest from United Venture Development (2020) - controlled by UOL Group, United Industrial Corporation and Kheng Leong Company. It bid about S$650 psf ppr or 4.8 per cent above the second highest bid. CSC Land placed the lowest bid of nearly S$578 psf ppr.
UOL Group's CEO, Liam Wee Sin, said: "Being the larger of the two sites, this plot gives us the opportunity to create an exciting product with about 450 units that is within walking distance to the newly-opened Canberra MRT.
"The recent URA Masterplan envisioned the Northern Region to be well-connected, including more emphasis to create one-stop hubs such as Bukit Canberra and Canberra Plaza. We believe that there will be healthy demand from the large catchment of owner-occupiers and potential HDB upgraders due to the increasing popularity of Canberra as a new integrated estate."
The Fernvale Lane EC site fetched seven bids. Frasers Property was the highest bidder at about S$555 psf ppr, just 0.5 per cent more than the second highest bid of S$552 psf ppr, which came from a partnership between Sing Holdings Residential and MCC Land (Singapore). The lowest bid of about S$500 psf ppr was by a consortium led by Evia Real Estate.
JLL's Mr Ong commented that although the top bid for the Fernvale Lane EC site was within expectations, it was about 3.6 per cent lower than that of the Anchorvale Crescent EC site sold in September 2018, (which is being developed into Ola) at S$576 psf ppr.
The Fernvale Lane EC site is across the road from shopping mall Greenwich V. The site is near Fernvale LRT station, The Seletar Mall, Fernvale Primary School and Sengkang Green Primary School.
Frasers Property Singapore's executive chairman of commercial, development and residential, Koh Teck Chuan, said the group plans to build a 500-unit condo project.
Cushman and Wakefield's Christine Li estimated the breakeven cost for the Fernvale EC site at around S$966 psf and the estimated selling price could start from S$1,060-1,110 psf.
She estimated the breakeven cost for the Canberra Drive parcels at S$1,140 psf, and the estimated selling prices could be in the range of S$1,250-1,300 psf.
Noting that the respective top bids for both Canberra Drive plots came in below expectation, Ms Li said: "This could mean that developers are prepared for either higher construction costs or slightly lower selling prices in the event that prices do not match up to expectation due to the implications from the virus outbreak. Material costs have shot up quite significantly recently due to the global supply chain disruption and there could be construction delays amid a manpower crunch. Developers might be looking for a bigger buffer for their projects in anticipation of these events."