View Full Version : Tender for Laguna Park closes with no winner
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1002346/1/.html
Marine Parade's Laguna Park for sale at S$1.2b reserve price
By Ng Baoying, Channel NewsAsia | Posted: 02 September 2009 1413 hrs
SINGAPORE: The Laguna Park estate in the Marine Parade area is up for collective sale, with an asking price of S$1.2 billion, according to its marketing agent Credo Real Estate.
The owners of the current property stand to get between S$2.1 and S$2.3 million each for their apartments. Penthouse owners could get between S$3.5 and S$4.1 million.
This could potentially be Singapore's second billion-dollar en-bloc deal, after Farrer Court in 2007.
Laguna Park, a former HUDC estate, is now home to 528 units spanning a land area of 670,000 square feet.
If the en-bloc sale goes through, this parcel could eventually accommodate about 1,500 units with an average size of 1,200 square feet.
Credo said that it has already received enquiries from major developers and funds. The competition for the 99-year leasehold land parcel is expected to be keen - with the reserve price at $1.2 billion dollars.
"If we do not receive bids above the reserve price, there is still potential for us to sell the site through negotiations, by a private treaty. In the new law we have 10 weeks for that, but I seriously think we don't need that," said Tan Hong Boon, deputy managing director, Credo Real Estate.
The price tag translates to a land rate of some S$844 per square foot per plot ratio.
The successful bidder will also have to pay about S$400 million to top up the lease and a development charge.
More than 80 per cent of Laguna Park's owners have given their consent for the collective sale, Credo said.
According to analysts, the draw for Laguna Park is the size of the plot and its proximity to the sea, which will provide the future development with a good view.
"If you look at the quality of land in Singapore, Laguna Park has got one of the longest stretches of sea, with coastal views. It's about 400 to 500m of seafront view and it's also unblocked on the other side. Very rarely you get a plot of land with such spectacular views," said Christina Sim, director, Investment, Cushman & Wakefield.
Observers said the developers are likely to use the opportunity to replenish their land stocks.
"Since March-April onwards, the absorption rate in the real estate market has been phenomenal. The take up is probably over 10,000 units already this year. It looks like developer stocks are really drying up. And because there's a huge draw down on stocks, the developers balance sheets are reflecting a really fantastic cash flow. They would be in the market to look at land banking again," she added.
Analysts said that the break-even land cost is around S$1,250 per square foot, and the future units are likely to fetch prices higher than that.
The units at The Silversea, another private development in the vicinity, recently transacted for as much as S$1,750 per square foot.
As per the analysts, even if the sale for Laguna Park goes through by the year end - launches shouldn't be expected any time soon. That's because developers will be waiting till after the integrated resorts open in 2010, before launching units for what many analysts call - a jewel in their crown.
- CNA/sc
View is one thing, ECP noise and pollution also there.
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_424531.html
Sep 2, 2009
Laguna Park en-bloc sale
By Jessica Cheam
EAST COAST condominium Laguna Park was put on en-bloc sale for $1.2 billion on Wednesday.
The condo, which made headlines in the past year for its spate of vandalism cases due to disputes in its en bloc sale process, reached the 80 per cent consent level last December.
Its marketing agent Credo Real Estate said the tender was put on hold until now 'as major developers have only recently returned to the land market with confidence.'
If it succeeds in finding a buyer, Laguna Park wil be the second billion-dollar en bloc deal in Singapore, after the 618- unit Farrer Court which was sold to a CapitaLand-led consortium for $1.3388 billion.
Like Farrer Court, Laguna Park is an ex-HUDC estate in Marine Parade and was privatised in 2007.
At the current price tag, owners of the apartment units will receive sale proceeds ranging from S$2.1 million to S$2.3 million, while the penthouses will gain between S$3.5 million and S$4.1 million.
It is also one of the few sites that come under the amended Land Titles (Strata) Act meant to tighten the en bloc sales process, which came into effect in October 2007.
Laguna Park has a land area of about 677,493 sq ft and a gross plot ratio of 2.8 under the current 2008 Master Plan, with a building height of up to 36 storeys, subject to relevant approval.
Credo's deputy managing director Tan Hong Boon estimates that the buyer would be able to build close to 1.9 million sq ft of gross floor area or some 1,500 apartments with an average size of about 1,200 sq ft.
At $1.2 billion, the land price for the condo works out to about $844 per sq ft per plot ratio.
This includes an estimated cost of about $400 million payable to the Government for maximising the plot ratio of 2.3 and the topping up of the current 67 year lease term to 99, said Mr Tan.
'At $844 per sq ft per plot ratio, the successful purchaser may work towards breaking even at around $1,200 to $1,250 psf, with a view of pricing the new units at $1,400 to $1,600 psf,' he added.
doubt any developer will bite.. :eek:
http://www.businesstimes.com.sg/sub/suite/story/0,4574,348717,00.html?
Published September 3, 2009
Laguna Park up for collective sale
More than 80% of owners consent to sale at a reserve price of $1.2b
By UMA SHANKARI
(SINGAPORE) Laguna Park, a 528-unit ex-HUDC estate in Marine Parade, has just been officially put up for collective sale. More than 80 per cent of the owners have inked their consent to the collective sale agreement at a reserve price of $1.2 billion.
The price works out to $844 per square foot per plot ratio (psf ppr), including an estimated total cost of about $400 million payable to the state for the increase in intensity of the site to the plot ratio of 2.8 and the topping up of the lease term to fresh 99 years.
Laguna Park has a land area of about 677,493 sq ft and a gross plot ratio of 2.8. The successful developer would be able to build close to 1.9 million sq ft of gross floor area or some 1,500 apartments with an average size of about 1,200 sq ft. Laguna Park is one of the few known sites that have successfully obtained majority owners' consent under the amended Land Titles (Strata) Act, which came into effect in October 2007.
'Although the 80 per cent consent was obtained in December 2008, the tender exercise was put on hold till now, as major developers have only recently returned to the land market with confidence,' said Tan Hong Boon, deputy managing director at Credo Real Estate, which is marketing the project.
Other analysts echoed this view. 'If you look at the past 12 months, right now is as good a time as any to launch the project,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
The collective sale market first came to life again earlier this year with the launch of Dragon Mansion on Spottiswoode Park Road - the first development to be launched for sale en bloc this year. Owners asked for $120 million for the freehold project, or $1,020 psf ppr including a development charge of about $400,000
But while the tender for that site closed last month, the property is yet to be sold, BT understands. If the reserve price for Laguna Park is met, most owners stand to receive sale proceeds ranging from $2.1 million to $2.3 million, while the penthouse owners will get between $3.5 million and $4.1 million each.
Credo also pointed out that if the site is sold, it could potentially be Singapore's second billion-dollar en-bloc deal. The largest sale price quantum achieved for a collective sale project to date is the 618-unit Farrer Court, which was also sold by Credo for $1.3388 billion in June 2007.
'At $844 psf ppr, the successful purchaser may work towards breaking even at around $1,200 to $1,250 psf, with a view of pricing the new units at $1,400 to $1,600 psf,' said Mr Tan.
http://www.straitstimes.com/Prime%2BNews/Story/STIStory_424700.html
Sep 3, 2009 Thursday
Laguna Park goes on sale for $1.2b
Consent level reached in Dec, but now's the right time for tender, it says
By Jessica Cheam
EAST Coast condominium Laguna Park was put up for collective sale yesterday with a hefty price tag of $1.2billion - potentially the second highest price ever here for such a deal.
The sprawling 30-year-old condominium has been in the headlines over a spate of vandalism attacks on residents who were not keen on the sale.
Despite its troubles, the estate attained the crucial 80per cent consent level from its owners last December.
But the tender exercise was put on hold until now 'as major developers have only recently returned to the land market with confidence', said its marketing agent Credo Real Estate.
If it succeeds in finding a buyer, Laguna Park will be the second billion-dollar en bloc deal here, after the 618-unit Farrer Court was sold to a CapitaLand-led consortium for $1.34billion in 2007.
Laguna's entry on the market marks a milestone in the estate's troubled path towards a collective sale that was made highly public due to incidents of vandalism which hit the estate last year.
Residents who spoke to The Straits Times yesterday said the estate's once-peaceful atmosphere has begun to return.
One resident, Mr Robin Sng, who had his car damaged by a corrosive liquid, says he has still not signed up to the deal because he wants to stay on.
Even with the payout, he feels it will be difficult to get a replacement unit with the same attributes in the area.
'Very few people now talk about the en bloc sale openly, although we know it is going on,' he said.
Another minority owner, who declined to be named, said he was adopting a wait-and-see approach to the sale, but confirmed that some owners - who themselves were victims of vandalism - had changed their minds and signed up after considering the attractive price tag.
At the current price, most owners will receive $2.1million to $2.3million, while the penthouses will fetch between $3.5million and $4.1million, said Credo.
This price, which works out to about $1,300 to 1,400 psf depending on the unit size, is double the price such units have been fetching in recent months - about $682 psf- even in the bullish market.
Industry analysts are speculating that the overall price tag - at $1.6billion, including an estimated $400 million payable to the Government for development charges and a fresh top-up of the lease - might deter developers.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak notes that the steep sum may lead to interested developers forming joint ventures.
On the timing of the sale, he said this time is 'as good as any to launch, as developers are triggering government land sales sites and 99-year leasehold condominiums seem to be selling out'.
Like Farrer Court, Laguna Park is a former HUDC estate; it is located in Marine Parade and was privatised in 2007. The condominium has a land area of about 677,493 sq ft and a gross plot ratio of 2.8.
Credo deputy managing director Tan Hong Boon estimates that the buyer could build about 1,500 new apartments with an average size of about 1,200 sq ft.
The land price for the condominium, which has 67 years left on its lease, works out to about $844 per sq ft per plot ratio, including the $400million payable.
At this price, the successful purchaser could break even at about $1,200 to $1,250 psf, with a view of pricing the new units at $1,400 to $1,600 psf, said Mr Tan.
Chesterton Suntec International's research and consultancy director Colin Tan said the condominium sits on an attractive site that faces the sea, but 'it remains to be seen if it can achieve that kind of pricing'.
The tender closes on Oct13 at 3pm.
[email protected]
http://www.todayonline.com/Business/EDC090903-0000124/For-sale--Laguna-Park,-The-price--$1,2-billion
For sale: Laguna Park. The price: $1.2 billion
by Tan Hui Leng
Updated 11:55 AM Sep 03, 2009
IT WILL be a closely-watched collective sale, not least because of its jaw-dropping $1.2 billion reserve price tag.
Despite the tough economic climate, Laguna Park residents, who stand to collect between $2.1 million and $4.1 million per unit, are hoping a developer or a consortium will snap up their massive 677,493 sq ft estate with its hot seafront location.
And waiting to see whether they succeed are other estates that could be en bloc candidates too - especially Lagoon View next door, which last month managed to gather enough votes to privatise the HUDC estate.
"Some of my neighbours have started to fantasise, and they agreed to privatisation because they have a dream figure, that each household could get $2 million," said retiree and Lagoon View resident John Tan.
But getting a buyer to bite the bait dangled by Laguna Park, a former HUDC development, will be a challenge, said analysts.
The obvious hurdle is the price, which is second only to another ex-HUDC estate, Farrer Court, which was sold for $1.3388 billion in June 2007 at the height of the en bloc frenzy.
"Given the credit situation, the banks are still tight on financing so it really depends on the credibility of developers to get the loan," said Jones Lang LaSalle local director of investments, Stella Hoh.
Any interested developers would have to undertake the sale through a consortium: The $1.2 billion asking price is higher than the market capitalisation of many individual developers, noted Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
The 838,488 sq ft Farrer Court, for example, was bought by CapitaLand with three other partners.
According to marketing agent Credo Real Estate, Laguna Park's price tag reflects a land rate of around $844 psf per plot ratio, after including costs of around $400 million to up the plot ratio and to top up the lease to a fresh 99-year term.
This means the total cost to developers could be a whopping $1.6 billion.
"At $844 psf/pr, the successful purchaser may work toward breaking even at around $1,200 to 1,250 psf, with a view to pricing the new units at $1,400 to $1,600 psf," said Credo's deputy managing director Tan Hong Boon.
How does that compare to current prices of apartments in the area? According to Urban Redevelopment Authority data, new development Parc Seabreeze (which features some sea view apartments) transacted at $1,193 to $1,520 psf in July. Units at Silversea, also at Marine Parade, were sold at $1,150 to $1,746 psf.
There could also be competitive pressure from other older seafront developments nearby, such as Bayshore Park, Mandarin Gardens and Lagoon View, which have the potential to go en bloc.
But perhaps Credo has no real option but to put out Laguna Park on the market now when sentiments are positive, said Mr Mak. With en bloc consent obtained last December, Credo has to get a buyer within a year of the mandate under the current collective sale rules.
Credo's Mr Tan said the company is "quite positive" about Laguna Park's sale as it has been receiving enquiries from developers.
The market, meanwhile, is waiting with bated breath. This year has not yet seen a successful en bloc sale. Dragon Mansion, with an asking price of $120 million, was put up for tender in July but there has been no news since the exercise closed on Aug 11.
"If Laguna Park succeeds in getting the reserve price of $1.2 billion, it will lift sentiments in the entire market," said PropNex's investment sale and commercial head Charles Chua.
Meanwhile, Laguna Park residents seem prepared that an en bloc sale will take place, though not all are happy about it. The lead-up to the vote had involved acrimony and even incidents of vandalism.
"We did vote to go en bloc ... because the market was going down," said one resident in her 60s who declined to be named.
I see enbloc news always refers to xxxx per sq ft per plot ratio. To get that number do you get the psf and divide by the condo plot ratio ?
Read here
http://www.todayonline.com/Business/Property/EDC090905-0000070/Laguna-Park-too-expensive
Of course it's true. They shd know best. Now they have to bite the bullet after paying so much for Farrer Court. They also had to hang onto Gilman Ht( wh is considered cheap if compared to FC) to make up for the phenomenal sum paid for FC.
Which brings me to the question: why would any developer , in these times, want to pay so much for a leasehold estate(still have to cough up big sum to top up to 99 yrs) when there are other freehold properties in good areas that are considering enbloc? Heard Pandan Valley is drumming support and one other nearby also itching to jump on the enbloc ship. PV is freehold and also has abt 600 units and the land is BIG. Does the seaview of LP really command so much premium?
I really dont get it. Can some expert enlighten me?
Of course it's true. They shd know best. Now they have to bite the bullet after paying so much for Farrer Court. They also had to hang onto Gilman Ht( wh is considered cheap if compared to FC) to make up for the phenomenal sum paid for FC.
Which brings me to the question: why would any developer , in these times, want to pay so much for a leasehold estate(still have to cough up big sum to top up to 99 yrs) when there are other freehold properties in good areas that are considering enbloc? Heard Pandan Valley is drumming support and one other nearby also itching to jump on the enbloc ship. PV is freehold and also has abt 600 units and the land is BIG. Does the seaview of LP really command so much premium?
I really dont get it. Can some expert enlighten me?
LP too late liao, missed the enbloc boat..
but then again we never know.. :p
proud owner
07-09-09, 02:27
Of course it's true. They shd know best. Now they have to bite the bullet after paying so much for Farrer Court. They also had to hang onto Gilman Ht( wh is considered cheap if compared to FC) to make up for the phenomenal sum paid for FC.
Which brings me to the question: why would any developer , in these times, want to pay so much for a leasehold estate(still have to cough up big sum to top up to 99 yrs) when there are other freehold properties in good areas that are considering enbloc? Heard Pandan Valley is drumming support and one other nearby also itching to jump on the enbloc ship. PV is freehold and also has abt 600 units and the land is BIG. Does the seaview of LP really command so much premium?
I really dont get it. Can some expert enlighten me?
apart from the big unit size and pretty squarish layout .. i am not sure whats goo with LP ... car part to units so far away
i visited a friend and heard low soft roaring and he said was the planes from airport ..
can u imagine? he said USED to it leow
LP too late liao, missed the enbloc boat..
but then again we never know.. :p
They will have to gauge the sales of Silverseas as a guide to estimate demand.
But I too think they have missed the enbloc boat.
FE SS only sold close to 60 units
is that good ??
can market digest 1500 units at LP for price of 1500psf to 1600psf
when SS which is close to shopping mall PP and future mrt stn - unable
to achieve "sold-out" until today ????
think......
FE SS only sold close to 60 units
is that good ??
can market digest 1500 units at LP for price of 1500psf to 1600psf
when SS which is close to shopping mall PP and future mrt stn - unable
to achieve "sold-out" until today ????
think......
I think many people think already that is why capital land and not biting.
FE SS only sold close to 60 units
is that good ??
can market digest 1500 units at LP for price of 1500psf to 1600psf
when SS which is close to shopping mall PP and future mrt stn - unable
to achieve "sold-out" until today ????
think......
Kepland & Capital Land have just raised rights issues this year all to the tune of around 1+ bn, and this enbloc is already more than 1bn!!!.
Capital Land still have Farrer Court, Gilman Heights, Char Yong Garden and Urban Resort......., likewise, Keppel Land have their own land bank that was bought at the high too.
In addition, govt is also poised to release land via the Confirmed List, so why be bothered to pump in one huge sum for this project?
There are a couples of points to share
Mentioned price up 5-15% by this year(?)
they left with 3,000 units in the landbank, after FC and GH, and CharYan, left only 300 units.
just wondering, what is the strategy used by C-Land, to talk down the market?
Also, for the SS, visited yesterday, only two towers launched, sales not as bad, as there are too many big units, thus made sales slow
Should LP, go for smaller units with sea facing, it would definitely much better, 5R in MP for more than 30 years were done >$700,000, and 3BR $360,000
Most likely, MRT will be near to LP with link to Siglap and ECP
Read here
http://www.todayonline.com/Business/Property/EDC090905-0000070/Laguna-Park-too-expensive
lol, of course it is too expensive. What other reasons can he gives.
The uptrend cannot sustain? He still have few projects lining up.
They run out of $ ?
They want to buy cheap, sell high? Of course, have to talk down the price first.
lol, of course it is too expensive. What other reasons can he gives.
The uptrend cannot sustain? He still have few projects lining up.
They run out of $ ?
They want to buy cheap, sell high? Of course, have to talk down the price first.
Well, it is a fact that he has paid too high a price for Farrer ... mayb he is speaking from his (bad) experience ... but those Farrer enbloc rich fellas really got him to thank lah (history created for the most lucrative enbloc deal, some more for ex-HUDC) .... kekeekeee ...
There are a couples of points to share
Mentioned price up 5-15% by this year(?)
they left with 3,000 units in the landbank, after FC and GH, and CharYan, left only 300 units.
just wondering, what is the strategy used by C-Land, to talk down the market?
Also, for the SS, visited yesterday, only two towers launched, sales not as bad, as there are too many big units, thus made sales slow
Should LP, go for smaller units with sea facing, it would definitely much better, 5R in MP for more than 30 years were done >$700,000, and 3BR $360,000
Most likely, MRT will be near to LP with link to Siglap and ECP
SS is much better located than LP, LP is in the middle of nowhere, so SS can definitely command higher price.
SS is much better located than LP, LP is in the middle of nowhere, so SS can definitely command higher price.
Unfortunately, SS does not have the smaller units with sea facing and it is only 23 storey height, whereas LP is 36 storey. Let's wait and see
Conditions have changed a great deal. FC enbloc will be hard to repeat, maybe even impossible.. But sometimes i hear owners say things like "hey so-&-so project happened, so mine can happen too" etc. This kind of mindset presumes real estate will always rise. Optimism is gd, but also need to be realistic ~
more interesting is how GH and FC are eventually priced & sell. GH has 1,000 units, FC has 1,500 units. It just spells mass mkt. Developers not likely to bite LP until they see the outcome of GH and FC.
SS is much better located than LP, LP is in the middle of nowhere, so SS can definitely command higher price.
Not many ppl like home at the round about.
Now fully understood why C-Land is to manage below $1,000 as the plan was all for BIG units..
2 BR 98 sq m
3 BR ranges from 117 to 197 Sq me
and 4 BR >200 sqm
cold sweat now for Interlace....did not response to the latest market...haha
Now fully understood why C-Land is to manage below $1,000 as the plan was all for BIG units..
2 BR 98 sq m
3 BR ranges from 117 to 197 Sq me
and 4 BR >200 sqm
cold sweat now for Interlace....did not response to the latest market...haha
No wonder CL CEO so pessimistic, looks like they will lose on the GH and FC developments.
Now fully understood why C-Land is to manage below $1,000 as the plan was all for BIG units..
2 BR 98 sq m
3 BR ranges from 117 to 197 Sq me
and 4 BR >200 sqm
cold sweat now for Interlace....did not response to the latest market...haha
No lah, the news say 2 BR starts from 75 sqm, about 807 sft
http://www.todayonline.com/Business/Property/EDC090905-0000070/Laguna-Park-too-expensive
Laguna Park 'too expensive'
Not a good investment at $1.2 billion
by Yasmine Yahya, 938LIVE
05:55 AM Sep 05, 2009
Singapore property giant CapitaLand has ruled itself out of bidding for the Laguna Park estate, which was put up for collective sale earlier this week.
CapitaLand's chief executive Liew Mun Leong said yesterday that the reserve price tag of some $1.2 billion for the estate is "too high to yield affordable homes".
He was speaking on the sidelines of an event to unveil the design of The Interlace, an upcoming CapitaLand project at the site of the former Gillman Heights estate.
Laguna Park, a former HUDC estate at Marine Parade, was launched for tender two years after the idea of an enbloc sale was first mooted.
Its marketing agent, Credo Real Estate, said it expects keen competition for the plot, but developer CapitaLand said the asking price is simply too high.
"I'm not very sure that at the end of the day, after paying over $800 per plot ratio, plus construction costs, plus your cost of financing, your break-even cost would be something like $1,500 or $1,600 (per square foot). "Are buyers prepared to pay for it at that location and that price? I am less sanguine than them," said Mr Liew.
Two years ago, CapitaLand bought Farrer Court in a collective sale for over $1.3 billion.
However, CapitaLand said on a per-square-foot basis, Laguna Park is more expensive.
Farrer Court was sold at between $762 and $783 per square foot per plot ratio (ppr). Laguna Park's reserve price works out to about $844 ppr. Mr Liew said "that is simply too high a price for it to be a good investment".
Mr Liew said CapitaLand has enough land in its portfolio and is not looking to buy more. He added that CapitaLand now has enough land to build some 3,000 homes, a third of which will be launched next month for The Interlace project.
condoinvestor
15-10-09, 15:51
Any updates on outcome of enbloc exercise?
condoinvestor
16-10-09, 19:44
Answer to my own question and for those interested, tender unsuccessful as expected.....
So capital land thinks that 1500-1600psf is not sellable at east coast. Is that the price resistance level os this area now?
http://www.todayonline.com/Business/Property/EDC090905-0000070/Laguna-Park-too-expensive
Laguna Park 'too expensive'
Not a good investment at $1.2 billion
by Yasmine Yahya, 938LIVE
05:55 AM Sep 05, 2009
Singapore property giant CapitaLand has ruled itself out of bidding for the Laguna Park estate, which was put up for collective sale earlier this week.
CapitaLand's chief executive Liew Mun Leong said yesterday that the reserve price tag of some $1.2 billion for the estate is "too high to yield affordable homes".
He was speaking on the sidelines of an event to unveil the design of The Interlace, an upcoming CapitaLand project at the site of the former Gillman Heights estate.
Laguna Park, a former HUDC estate at Marine Parade, was launched for tender two years after the idea of an enbloc sale was first mooted.
Its marketing agent, Credo Real Estate, said it expects keen competition for the plot, but developer CapitaLand said the asking price is simply too high.
"I'm not very sure that at the end of the day, after paying over $800 per plot ratio, plus construction costs, plus your cost of financing, your break-even cost would be something like $1,500 or $1,600 (per square foot). "Are buyers prepared to pay for it at that location and that price? I am less sanguine than them," said Mr Liew.
Two years ago, CapitaLand bought Farrer Court in a collective sale for over $1.3 billion.
However, CapitaLand said on a per-square-foot basis, Laguna Park is more expensive.
Farrer Court was sold at between $762 and $783 per square foot per plot ratio (ppr). Laguna Park's reserve price works out to about $844 ppr. Mr Liew said "that is simply too high a price for it to be a good investment".
Mr Liew said CapitaLand has enough land in its portfolio and is not looking to buy more. He added that CapitaLand now has enough land to build some 3,000 homes, a third of which will be launched next month for The Interlace project.
condoinvestor
16-10-09, 23:54
Based on the sale price of The Elliot, just opp at abt 950 psf ave, fair price for a new development on LP should be abt 200 psf more for the seaview premium, so averaging abt 1150 psf
moneyspinner
17-10-09, 12:09
This one can wait long long and its not to the advantage of the owners as its only 99 years leasehold. It suffers from time decay. So the value of the development will only go down over time as the lease reduces!:)
Regulators
17-10-09, 23:41
my wishes for this development not to get enbloc seem to have come true. There are a lot of greedy n mentally fxxked up owners including the ex-manager.
my wishes for this development not to get enbloc seem to have come true. There are a lot of greedy n mentally fxxked up owners including the ex-manager.
either lower asking or they can hold till eternity
moneyspinner
18-10-09, 10:27
either lower asking or they can hold till eternity
Nothing last forever. By the way anybody knows roughly how long can a building be allowed to be left standing if less than 99 years? In any case, max is 99 years.
proud owner
18-10-09, 10:32
Nothing last forever. By the way anybody knows roughly how long can a building be allowed to be left standing if less than 99 years? In any case, max is 99 years.
i think in cold countries .. buildings stand strong for centuries ..
but in hot equatorial .. rain and sun, cracks expand, water sips thru ...etc buildings tend not to last very long
and with spore govt very kiasu of bad reputation if a building collapses .. i think max 50 yr ... something will have to be done ..esp if it is a high rise
the owners may not want to move actually, most i hear are quite nicely settled in, and if they have to be paid to leave their homes, they want a premium so that they can get an equivalent nearby.
if that was your home, you'll probably behave the same way.
i think in cold countries .. buildings stand strong for centuries ..
but in hot equatorial .. rain and sun, cracks expand, water sips thru ...etc buildings tend not to last very long
and with spore govt very kiasu of bad reputation if a building collapses .. i think max 50 yr ... something will have to be done ..esp if it is a high rise
Latest is LP will lower price from 1.2b to 0.9b.
Anyway 1.8m is also not bad compared to current market price of 1.3m.
Maybe after 50 years, gahmen can top up difference between developers and owners?
Does anyone has any scientific proof why buildings in hot humid climate do not last? Does the reinforce concerete rust away?
Latest is LP will lower price from 1.2b to 0.9b.
Anyway 1.8m is also not bad compared to current market price of 1.3m.
Maybe after 50 years, gahmen can top up difference between developers and owners?
Does anyone has any scientific proof why buildings in hot humid climate do not last? Does the reinforce concerete rust away?
$1.8 m per unit is a more reasonable price.
Laguna Park cannot compare with Farrer Court, which is in district 10. :tsk-tsk:
Now that the price has been reduced by 25%, that means the developer's breakeven cost will be around $900 psf, instead of $1,200 psf.
The Straits Times
Sep 3, 2009
The land price for the condominium, which has 67 years left on its lease, works out to about $844 per sq ft per plot ratio, including the $400million payable. At this price, the successful purchaser could break even at about $1,200 to $1,250 psf, with a view of pricing the new units at $1,400 to $1,600 psf, said Mr Tan.
bargain hunter
18-10-09, 23:14
i think the logistics behind trying to get a consensus to accept a 950m sale price would take too long to meet the completion by Dec 19 deadline.
Better than nothing.. think most will go for it. :)
Better than nothing.. think most will go for it. :)
hard to say.. with the money where else comparative can they buy if don't want to downgrade in size assuming if owner need another place for own stay
hard to say.. with the money where else comparative can they buy if don't want to downgrade in size assuming if owner need another place for own stay
Plenty of FH landed for them to go for.
Plenty of FH landed for them to go for.
ok i was thinking more of D9 and 10 location ~
ok i was thinking more of D9 and 10 location ~
Laguna Park is D15 bordering on D16, cannot compare with D9/10.
They can buy a similar-sized apartment (depending on their size 1,453 sf / 1,615 sf) in nearby Costa Del Sol (average $1,050 psf), The Bayshore (average $700 psf) or Bayshore Park (average $730 psf), and have spare cash left over. :spliff:
Or they can buy a freehold landed house like what xebay11 has suggested.
There are some small freehold terrace houses in nearby Sennett Estate with land area around 1,600 sf selling for around $1.2 million, again with spare cash left over. :spliff:
condoinvestor
19-10-09, 00:52
still think 0.9b or 900m is too much to pay for LP.....
ok i was thinking more of D9 and 10 location ~
In that case, that is definitely moving up for LP residents, afterall their LP when first bought, was practically HDB (HUDC), they were not private property in the begining, and they have already stayed so long for free and theirs is LH property and so these greedy fellows should actually be grateful for what ever is being offered and stop being so greedy, if you noticed, the most greedy sellers in en bloc sales are not the private property sellers but the lowest rung HUDC sellers, Neptune Court, Gillman Heights etc, they seem to have forgotten their roots.
Or maybe some of these staying in LP didn't buy it when it was HUDC leh ... say bout 2nd-hand? So greedy oso shouldn't come as a surprise mah ... .... But if I were the 1st owner, would take the revised price tag ... wait ask for the sky really no more takers for such an old property :p
In that case, that is definitely moving up for LP residents, afterall their LP when first bought, was practically HDB (HUDC), they were not private property in the begining, and they have already stayed so long for free and theirs is LH property and so these greedy fellows should actually be grateful for what ever is being offered and stop being so greedy, if you noticed, the most greedy sellers in en bloc sales are not the private property sellers but the lowest rung HUDC sellers, Neptune Court, Gillman Heights etc, they seem to have forgotten their roots.
new2mondrian
19-10-09, 09:44
Laguna Park is D15 bordering on D16, cannot compare with D9/10.
They can buy a similar-sized apartment (depending on their size 1,453 sf / 1,615 sf) in nearby Costa Del Sol (average $1,050 psf), The Bayshore (average $700 psf) or Bayshore Park (average $730 psf), and have spare cash left over. :spliff:
Or they can buy a freehold landed house like what xebay11 has suggested.
There are some small freehold terrace houses in nearby Sennett Estate with land area around 1,600 sf selling for around $1.2 million, again with spare cash left over. :spliff:
Actually the Laguna Park owners shd just take the 950m deal. 99-year leasehold is always a sinking deal. Unless it is in prime (such as Horizon Towers and Farrer Park) location, otherwise nobody knows how long this party can last. After all, there are still tonnes of FH stuffs out there. :doh:
Agree Sennett is good. I have been looking ard the area for the longest time but nothing reasonable (ie more than 2100sqft of land size) and ideal (translate into corner or semi-d) and well-priced (ie less than $1.5M) came up. Sigh...
moneyspinner
19-10-09, 10:05
Actually the Laguna Park owners shd just take the 950m deal. 99-year leasehold is always a sinking deal. Unless it is in prime (such as Horizon Towers and Farrer Park) location, otherwise nobody knows how long this party can last. After all, there are still tonnes of FH stuffs out there. :doh:
Agree Sennett is good. I have been looking ard the area for the longest time but nothing reasonable (ie more than 2100sqft of land size) and ideal (translate into corner or semi-d) and well-priced (ie less than $1.5M) came up. Sigh...
And that is provided some developer is willing to offer S$950.0 million! Any takers?:doh:
You have to stay or visit some sea facing units in Laguna to realise how great the unblocked seaview, big layout, quite environment, easy access to East Coast Park/ECP . I hv few friends living there for more than 30 yrs and all not keen on the eb-bloc regardless of price as it is perfect place to retire.
Why LP asked for 1.2B is simply to get enough relautant ( I tio lai, Bo tio sua ) owners like my friends to sign on the doc. So I think 950M may not get enough support to sell....
You have to stay or visit some sea facing units in Laguna to realise how great the unblocked seaview, big layout, quite environment, easy access to East Coast Park/ECP . I hv few friends living there for more than 30 yrs and all not keen on the eb-bloc regardless of price as it is perfect place to retire.
Why LP asked for 1.2B is simply to get enough relautant ( I tio lai, Bo tio sua ) owners like my friends to sign on the doc. So I think 950M may not get enough support to sell....
Indeed! You have to stay or visit in order to experience the noise and pollution! In order to have great seaview, you have to be at a higher floor..and that means plenty of traffic noise from the ECP.
It's 30 yrs old, poorly maintained....look worse than Marine Parade HDB blocks...peeling paint at the common areas and many units suffering from leaking pipes.
Indeed! You have to stay or visit in order to experience the noise and pollution!
An LP owner just posed in MYPAPER today a forum-styled question on how the clogging of the frontal waterways with ships and tankers are contributing to the air pollution that drifted to his LP house and hence his need to close doors, aircon and the air purifier!
:o
There are older folks who are reluctant to change. They are so used to the environment. They just want to see out their remaining years and not worry about what they will leave behind. So naturally the profit won't mean much unless it's so much that'll justify their hassle to uproot themselves.
An LP owner just posed in MYPAPER today a forum-styled question on how the clogging of the frontal waterways with ships and tankers are contributing to the air pollution that drifted to his LP house and hence his need to close doors, aircon and the air purifier!
:o
This should affect all seaview properties yeah?
This should affect all seaview properties yeah?
He should be able to retain his retirement home with his posting right? I pity those who bought into Laguna Park for the enbloc (if there is any). They can't even beat this old man and his lies.
For those that treat it as their home.. gd news.. But reckon the enbloc vultures should be pissing in their pants now.. :banghead: Heard a few of them have even got more than 1 unit.. Gd Luck ...
So think pressure will be for LP to mvoe ahead with the enbloc sales.. even at lower prices.. these vultures still profit a handsome gain..
:scared-1:
http://www.businesstimes.com.sg/sub/news/story/0,4574,355084-1255809540,00.html?
Published October 17, 2009
Tender for Laguna Park closes with no winner
The company that had submitted the higher of two bids withdraws, citing funding difficulties
By UMA SHANKARI
LAGUNA Park, which went up for collective sale last month at $1.2 billion, has failed to attract a buyer so far.
http://www.businesstimes.com.sg/mnt/media/image/launched/2009-10-17/BT_IMAGES_UMSALE17.jpg
WHAT NEXT?
The majority owners of Laguna Park now have about a month to enter into any private treaty deal before the agreement expires in December
The 528-unit leasehold project at Marine Parade remains unsold after the company that submitted the higher of two bids faced funding problems.
At the close of the tender on Tuesday, two submissions were received for the property, said Credo Real Estate, which is marketing the development.
One submission was from a locally incorporated company that offered $1.728 billion - well above the owners' reserve price of $1.2 billion. The company's main shareholders are understood to be based in Indonesia.
The other submission was from a prominent local developer, which expressed an interest in negotiating.
BT understands that the developer was not willing to meet the reserve price.
Credo conducted negotiations on the terms of the sale with the Indonesian-owned company, which was to re-submit the tender deposit in the owners' prescribed format.
However, on Thursday evening, the offerer's lawyers wrote to the owners' lawyers saying that the offer had been withdrawn because the offerer faced 'difficulty in its bankers processing the funds and remitting them to Singapore'.
Credo is now conducting negotiations with the local developer, said Credo managing director Karamjit Singh.
The majority owners of Laguna Park now have about a month or so to enter into any private treaty deal before the collective sale agreement expires in December 2009.
'The tender was good in that it showed that developers are still keen on this kind of site,' said Mr Singh. The problem was with the price, he said.
A banker whom BT spoke to earlier said that even if a developer was willing to pay $1.2 billion for a site, finance for both the land and construction could be hard to come by.
Market watchers were surprised at the amount offered by the Indonesian party.
The reserve price of $1.2 billion works out to $844 per square foot per plot ratio (psf ppr), including an estimated $400 million payable to the state for an increase in intensity of the site to the plot ratio of 2.8 and topping up the lease term to fresh 99 years.
The $1.728 billion offer, on the other hand, worked out to about $1,122 psf. Laguna Park has a land area of about 677,493 sq ft. About 1,500 apartments with an average size of about 1,200 sq ft each can be built on the site.
http://www.straitstimes.com/Money/Story/STIStory_443300.html
October 17, 2009 Saturday
$1.2b Laguna Park en bloc sale bid fails
$1.7b offer made, then withdrawn; price tag unrealistic, analysts say
By Jessica Cheam
OWNERS of East Coast condominium Laguna Park have failed in their bid to sell the property en bloc for $1.2 billion through a tender process.
Industry analysts say the result was not surprising, considering the high asking price.
However, in a curious twist of events, one company had submitted a bid for $1.728 billion - only to withdraw the offer on Thursday night.
The estate's marketing agent, Credo Real Estate, said yesterday in a statement that it had received two submissions at the close of the tender on Oct 13.
One of them was from a locally incorporated firm which offered the eye-popping $1.728 billion bid. The other expression of interest was from a 'local and prominent developer', which was believed to have made an offer below the reserve price.
Credo declined to name both firms, citing confidentiality agreements.
But it is understood that principal shareholders of the first firm which had offered above the reserve price are based in Indonesia, said Credo.
The firm was due to submit the tender deposit on instructions specified by the owners, but the firm's lawyers wrote in on Thursday night to withdraw the offer. They said the firm faced 'difficulty in their bankers processing the funds and remitting them to Singapore', said Credo.
Owners of the 528-unit development at Marine Parade yesterday said they had not heard any news officially from the sales committee, although a meeting for owners has been slated for tomorrow.
One owner, who declined to be named, said she was neutral as to whether the sale went through or not. 'Whether it sells or not, it doesn't really matter,' she said.
Chesterton Suntec International's research and consultancy director Colin Tan said the condo's failure to find a buyer 'simply confirms that developers are not going to pay unrealistic prices'.
'Developers are signalling to sellers that if you're not realistic, we won't be interested in putting in bids.
'They are mindful of the ability of home buyers to pay even higher prices. This is not sustainable so they're not willing to bear higher risks,' said Mr Tan.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that en bloc deals have not seen much success this year.
Dragon Mansion in Spottiswoode Park, as well as Changi Garden Condominium at Jalan Mariam, have been tendered with no deals done.
'Owners are still expecting pre-crisis price levels which developers are now not prepared to pay. Either the owners wait even longer, or prepare to accept a lower price,' said Mr Mak.
This might prove difficult. As another Laguna Park resident put it: 'I don't think anybody will sell at a lower price.'
Credo said it is still in negotiations with the local developer on a possible deal. Owners have until mid-December, when the collective sales agreement expires, to sell the estate via private treaty.
The former HUDC estate has a large land area of about 677,493 sq ft and a gross plot ratio of 2.8.
The sprawling 30-year-old condominium has been in the headlines over a spate of vandalism attacks on the property of residents who were not keen on the sale.
[email protected]
The case of the gillman heights owner getting under 900k is a good reminder to potential en bloc residents. Cut yourself too thin and you could potentially be priced out of a property in the area of the same size.
The case of the gillman heights owner getting under 900k is a good reminder to potential en bloc residents. Cut yourself too thin and you could potentially be priced out of a property in the area of the same size.
True as well if they wait long enough like another 10 years, they will definitely be priced out of the market:doh:
The case of the gillman heights owner getting under 900k is a good reminder to potential en bloc residents. Cut yourself too thin and you could potentially be priced out of a property in the area of the same size.
What do they expect? Theirs is no prime FH property to start with.
proud owner
20-10-09, 01:33
Or maybe some of these staying in LP didn't buy it when it was HUDC leh ... say bout 2nd-hand? So greedy oso shouldn't come as a surprise mah ... .... But if I were the 1st owner, would take the revised price tag ... wait ask for the sky really no more takers for such an old property :p
if kana enbloc and get paid 1.2 mio SGD .. can buy this landed in USA HAMPTON
land size 1 acre= 43000 sqft
http://www.prudentialelliman.com/Listings.aspx?ListingID=H33046&rentalperiod=&SearchType=li&HNF#
proud owner
20-10-09, 01:35
if kana enbloc and get paid 1.2 mio SGD .. can buy this landed in USA HAMPTON
land size 1 acre= 43000 sqft
http://www.prudentialelliman.com/Listings.aspx?ListingID=H33046&rentalperiod=&SearchType=li&HNF#
or any of these
http://www.gothamphotocompany.com/FM/03d74aac-063b-4636-96a9-64ca6fddedf6.viewflyer
In that case, that is definitely moving up for LP residents, afterall their LP when first bought, was practically HDB (HUDC), they were not private property in the begining, and they have already stayed so long for free and theirs is LH property and so these greedy fellows should actually be grateful for what ever is being offered and stop being so greedy, if you noticed, the most greedy sellers in en bloc sales are not the private property sellers but the lowest rung HUDC sellers, Neptune Court, Gillman Heights etc, they seem to have forgotten their roots.
You cannot blame them. For HUDC dwellers, this en bloc may be a once-in-a-lifetime opportunity to make an amount of money equivalent to, or even greater than, their total income for their entire life. :scared-4:
On the other hand, for Grangeford en bloc owners like Hong Kong movie star Jackie Chan, the $3.4 million he got from the en bloc represented only approximately 2 weeks' income. :doh:
Anyway, it's quite easy to work out Laguna Park's value, by working backwards.
It's Gross Floor Area (GFA) is, as reported, 1.9 million sq ft.
Knowing that new condo launches nowadays do not go below $1,000 psf (even for places like West Coast, Ayer Rajah and, of all places, Geylang!), the total saleable price of the New Laguna Park project would be at least $1.9 billion.
Subtract $300 psf for building and financing costs (i.e. $570 million), that's a land value of $1.33 billion.
That's why bidding at the reserve price of $1.2 billion would make no sense, as the margin would be too thin for such a heavy investment.
However, a lower en bloc price of $900 million will give the developer a potential profit of at least $430 million, not an amount to sniff at.
That's assuming the New Laguna Park project sells at only $1,000 psf.
If the developer makes the units "Mickey Mouse" size, as is the trend nowadays, they could even price it at $1,400 psf (same as Geylang) and achieve sellout in half a day.
In that case, the New Laguna Park project's total saleable value goes up to $2.66 billion !!! :scared-4:
I guess that was probably what the Indonesian bidder had in mind when they bidded $1.7 billion, but withdrew last minute when the Business Times reported that URA may not approve these "Shoebox Units".
The Business Times Oct 17, 2009
'Shoebox' units may wilt under URA's gaze
http://business.asiaone.com/A1MEDIA/business/10Oct09/images/20091015.123705_shoe.jpg
True as well if they wait long enough like another 10 years, they will definitely be priced out of the market:doh:
Therefore, if they accept a low bid now, the price out is immediate. If they wait another 10 years, they at least have their seaview for another 10 years, after which the older folks can go live with their children to see out their remaining retirement years.
Property_Owner
20-10-09, 09:39
if kana enbloc and get paid 1.2 mio SGD .. can buy this landed in USA HAMPTON
land size 1 acre= 43000 sqft
http://www.prudentialelliman.com/Listings.aspx?ListingID=H33046&rentalperiod=&SearchType=li&HNF#
http://172.31.254.241/www.prudentialelliman.comm/LIBrokerPhotos/108500.jpg
The agent look so hunky.
Property_Owner
20-10-09, 09:41
You cannot blame them. For HUDC dwellers, this en bloc may be a once-in-a-lifetime opportunity to make an amount of money equivalent to, or even greater than, their total income for their entire life. :scared-4:
On the other hand, for Grangeford en bloc owners like Hong Kong movie star Jackie Chan, the $3.4 million he got from the en bloc represented only approximately 2 weeks' income. :doh:
Anyway, it's quite easy to work out Laguna Park's value, by working backwards.
It's Gross Floor Area (GFA) is, as reported, 1.9 million sq ft.
Knowing that new condo launches nowadays do not go below $1,000 psf (even for places like West Coast, Ayer Rajah and, of all places, Geylang!), the total saleable price of the New Laguna Park project would be at least $1.9 billion.
Subtract $300 psf for building and financing costs (i.e. $570 million), that's a land value of $1.33 billion.
That's why bidding at the reserve price of $1.2 billion would make no sense, as the margin would be too thin for such a heavy investment.
However, a lower en bloc price of $900 million will give the developer a potential profit of at least $430 million, not an amount to sniff at.
That's assuming the New Laguna Park project sells at only $1,000 psf.
If the developer makes the units "Mickey Mouse" size, as is the trend nowadays, they could even price it at $1,400 psf (same as Geylang) and achieve sellout in half a day.
In that case, the New Laguna Park project's total saleable value goes up to $2.66 billion !!! :scared-4:
I guess that was probably what the Indonesian bidder had in mind when they bidded $1.7 billion, but withdrew last minute when the Business Times reported that URA may not approve these "Shoebox Units".
The Business Times Oct 17, 2009
'Shoebox' units may wilt under URA's gaze
http://business.asiaone.com/A1MEDIA/business/10Oct09/images/20091015.123705_shoe.jpg
I'am waiting for your book.
Therefore, if they accept a low bid now, the price out is immediate. If they wait another 10 years, they at least have their seaview for another 10 years, after which the older folks can go live with their children to see out their remaining retirement years.
LP is selling now for 850psf. No need to wait 10 years to see the value. Pearl Bank is 7 years older. It is selling for 650psf. Enbloc LP now at above 1000psf. I skipped the seaview and take the money anytime.;)
Anyway, it's quite easy to work out Laguna Park's value, by working backwards.
It's Gross Floor Area (GFA) is, as reported, 1.9 million sq ft.
Knowing that new condo launches nowadays do not go below $1,000 psf (even for places like West Coast, Ayer Rajah and, of all places, Geylang!), the total saleable price of the New Laguna Park project would be at least $1.9 billion.
Subtract $300 psf for building and financing costs (i.e. $570 million), that's a land value of $1.33 billion.
That's why bidding at the reserve price of $1.2 billion would make no sense, as the margin would be too thin for such a heavy investment.
However, a lower en bloc price of $900 million will give the developer a potential profit of at least $430 million, not an amount to sniff at.
That's assuming the New Laguna Park project sells at only $1,000 psf.
If the developer makes the units "Mickey Mouse" size, as is the trend nowadays, they could even price it at $1,400 psf (same as Geylang) and achieve sellout in half a day.
In that case, the New Laguna Park project's total saleable value goes up to $2.66 billion !!! :scared-4:
I guess that was probably what the Indonesian bidder had in mind when they bidded $1.7 billion, but withdrew last minute when the Business Times reported that URA may not approve these "Shoebox Units".
The reserve price of $1.2 billion works out to $844 per square foot per plot ratio (psf ppr), including an estimated $400 million payable to the state for an increase in intensity of the site to the plot ratio of 2.8 and topping up the lease term to fresh 99 years.
In your calculation, you left out the est $400m that the developer will still need to pay for the development premium and topping up of lease. Hence, in your example, at $1.2b enbloc price, the cost to the developer is $2.17b (1.2b + 400m + 570m). So there's no way the developer can break even at $1k psf.
Even at $950m enbloc price, the meaningful selling price has to be at least about $1.2k psf.
True as well if they wait long enough like another 10 years, they will definitely be priced out of the market:doh:
Maybe they should learn from these newly created dragon millionaires?
http://www.h88.com.sg/images/h88_masthead_logo.jpg
First successful en bloc of 2009
H88
Tuesday, 20 October 2009, 13:26 hrs
http://www.h88.com.sg/images/content/2009-10-20/dragon_mansion_sold.jpg
Yes! Finally, Dragon Mansion has done what no other has done this year - a successful en bloc! Since the tender was announced way back in July 2009 there have been few takers, but now this small District 2 condo along Spottiswoode Park Road has breathed hot fire into the en bloc market!
http://www.h88.com.sg/images/content/2009-07-15/dragon_mansion.jpg
RL Developments, a unit of Roxy-Pacific Holdings (the people who own Grand Mecure Roxy Hotel and developed Balestier's Nova 48 and Nova 88), has shelled out about $100.8m for the condo. Sadly for the owners, it was much less than the $120m they were asking for. But still, under the circumstances, at least they managed to sell the place!
$100.8m for 117,247 sqft of potential residential space works out to $860 psf ppr.
Maybe they should learn from these newly created dragon millionaires?
[/i]
Yes a cool 1.38m each compared to a Jan transaction of 770k. That's a pretty good deal and a pretty darn good number.
Now the catch is not to let the minorities take this to court which may drag out another 3 years by which time 1.38m may not be able to buy you you a replacement property.
Hope these would be dragonaires can learn fast from Horizon towers and Gillman Heights;)
proud owner
20-10-09, 20:43
Yes a cool 1.38m each compared to a Jan transaction of 770k. That's a pretty good deal and a pretty darn good number.
Now the catch is not to let the minorities take this to court which may drag out another 3 years by which time 1.38m may not be able to buy you you a replacement property.
Hope these would be dragonaires can learn fast from Horizon towers and Gillman Heights;)
are these chinatowners stupid or realistic ? i believe the latter ..
LP ( or east coasters?) are more greedy .. sorry if that offends anyone ..
they have to realise that the buildings are old ..
its like a 30 yr old man, standing in the sun and rain for all these years .. with each unit renovations, its like an organ transplant, or cosmetic surgery .. nice, but may mot prolong the lifespan or the wear and tear on the outside ..
the longer they delay, the older they get, the more they have to fork out to maintain the buildings ...
when its time to go, just let it go people ..
dont learn the Till Death do us Part spirits from some politician .. let go and be happy
NOTE I DONT OWN ANYTHING PROP IN EAST COAST
In your calculation, you left out the est $400m that the developer will still need to pay for the development premium and topping up of lease. Hence, in your example, at $1.2b enbloc price, the cost to the developer is $2.17b (1.2b + 400m + 570m). So there's no way the developer can break even at $1k psf.
Even at $950m enbloc price, the meaningful selling price has to be at least about $1.2k psf.
Alamak! You are right!
eleong is sharp! I'm so honoured that this is eleong's first post after his registration. :p
I have totally forgotten about the $400 m development charge and lease premium! :doh:
Our big boss, the Government, also wants a cut! :spliff:
That would mean an additional cost of $210 psf.
Which means that if the en bloc price is $900 m, the breakeven selling price is $984 psf ($900 m + $570 m + $400 m = $1.87 b divide by 1.9 million sq ft = $984 psf breakeven).
To make a decent profit, the developer will have to sell at $1,200 psf, which will give the developer a profit of approximately $200 psf x $1.9 million sq ft = $380 million.
Is it possible for the New Laguna Park project at East Coast to achieve $1,200 psf?
Or should they "Mickey Mouse" it to achieve $1,400 psf? That remains to be seen ...
I'am waiting for your book.
Stay tuned to condosingapore.com to watch this exciting story unfold ... :p
capland's liew already said at 1.2b, breakeven will be 1.2k psf
so if price now lowered to 950m, then breakeven shld be around 960k psf lor ~
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