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Thread: Lian Beng bags $150.7m condo contract

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    Default Lian Beng bags $150.7m condo contract

    http://www.businesstimes.com.sg/sub/...42115,00.html?

    Published June 7, 2011

    Lian Beng bags $150.7m condo contract


    LIAN Beng Group announced yesterday that it had won a private residential contract worth $150.7 million.

    The project will cover the building and earthworks of the condominium - known as Hedges Park - at Upper Changi Road North/Flora Drive.

    The total land area of about 330,000 square feet will have 501 residential units, a basement car park, swimming pools, landscape and ancillary facilities.

    The project is due to commence this month and is estimated to be completed by August 2014.

    At the start of June, Lian Beng's aggregate order book stood at $812 million, including the contract win. The project is expected to contribute to the company's revenue from FY2012 to FY2014.

    Lian Beng believes that it will benefit from the revised GDP growth forecast from 4-6 per cent to 5-7 per cent.

    It cited the Building & Construction Authority's (BCA) projection of construction demand to reach between $22 billion and $28 billion, where 65 per cent of the aggregate demand will come from building projects.

    'Moving forward, we will continue to tender for more construction projects in both the public and private construction sectors,' chairman and managing director Ong Pang Aik said.

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    Meaning 300k average building costs per unit. Is it normal?

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    Quote Originally Posted by Fleur
    Meaning 300k average building costs per unit. Is it normal?
    Its gfa is around 412613sqft.. So building costs sums up to around 365psf.. Seems to be a bit on the high side.. Finishing is compressed marble living room.. Maybe because they have too many pools..

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    The construction cost is even higher than land price. Land I remember is 120+mil. Construction is 150+mil. So the construction price psf is $326psf. Add land at $323psf, we are looking at breakeven of $700psf. Add in profit of $150, that translate to selling price of $850 on the average, which is what we are seeing now for Hedges price.

  5. #5
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    That works out to a construction cost of $326psf, think should be within estimates.

    http://www.ura.gov.sg/pr/text/2010/pr10-52.html
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    With the gd finishing and they throw in with free washer, oven and fridge..gather HL margin for this project is quite slim..

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    Thanks. 150/850 is still 17 percent profits, which is quite good in business terms. But the construction costs per psf does seem quite high.

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    Quote Originally Posted by Chonngpang
    With the gd finishing and they throw in with free washer, oven and fridge..gather HL margin for this project is quite slim..
    Actually compressed marble is so so lah.. Of course better than tiles lah.. But it is still not marble.. Free oven exists in every condo.. Fridge and washer's cost are not that high cos they buy in bulk, most prob less than 500k..

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    I m planning to exercise my option for hedges..got any final word of advice? Got it for $880 psf for a 2+1 unit..under 800k..concern is it is a 99 LH surround by all the big FH units..capital appreciation maybe limited..

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    Quote Originally Posted by Chonngpang
    I m planning to exercise my option for hedges..got any final word of advice? Got it for $880 psf for a 2+1 unit..under 800k..concern is it is a 99 LH surround by all the big FH units..capital appreciation maybe limited..
    Yah that was my concern as well.. Too many FH around.. Now it is still new launch so people like it.. But next time all are resale condos, people will look at the lease.. If the FH sell cheap cheap, then hedges has no reason to sell more exp than them.. But well, if you buy to stay, you like it can liao..

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