Developers turn cautious at Changi site tender

[mr funny]

http://www.businesstimes.com.sg/sub/...40740,00.html?

Published June 17, 2011

Developers turn cautious at Changi site tender

Top bid by Frasers Centrepoint just 1.3% above nearby plot sold last year

By KALPANA RASHIWALA


(SINGAPORE) Developers may be starting to get cautious with land bids for 99-year leasehold mass-market condo sites as they heed the pronouncements of National Development Minister Khaw Boon Wan, who took office just last month.

Frasers Centrepoint's top bid of $325.09 per square foot per plot ratio (psf ppr) at a state tender yesterday for a 99-year private condo plot at Flora Drive in the Upper Changi area was just 1.3 per cent higher than that for a nearby site sold in April last year (now being developed into Hedges Park Condominium).

This gap is narrower than the 10-22 per cent premiums achieved for other 99-year mass-market condo sites sold by the government in the past few weeks (in Woodlands, Buangkok and Pasir Ris) against comparable sites transacted last year.

Analysts also say that Frasers Centrepoint's top bid yesterday suggests that it worked in a safety margin for potential price softening. This marks a departure from developers' earlier strategy of assuming higher launch prices for their projects than prevailing prices in the respective locations when pricing land bids at state tenders.

Knight Frank chairman Tan Tiong Cheng said the outcome at yesterday's tender could mark a 'turning point' in the mass-market condo land price cycle.

Agreeing, Credo Real Estate executive director Ong Teck Hui said: 'I think going forward, it is quite likely that bids will not be as bullish as what we saw last year, for comparable sites.'

Said Mr Tan: 'Developers are acting cautiously and sensibly as they take heed of Mr Khaw's blog last week, warning about the dangers in the market, that property prices cannot keep on rising forever, of how we may hit a perfect storm,' he added.

'There will also be no shortage of supply,' he added. In August, the government will launch another plot next to the site tendered yesterday as part of the second-half 2011 Government Land Sales Programme.

The top bid at yesterday's tender by Frasers Centrepoint was just $1.43 psf ppr or 0.4 per cent higher than the next highest offer of $323.66 psf ppr by Hong Leong Group unit Tripartite Developers, which has a historically strong presence in the location, and which also clinched the nearby Hedges Park Condo plot last year.

This winning margin is one of the tightest ever seen at a state tender.

In addition, market watchers noted that the $325 psf ppr top bid yesterday was the lowest for 99-year private condo land sold so far this year.

Yesterday's tender drew two other bids - from Hiap Hoe unit Leng Hoe Development ($304.36 psf ppr) and Robert Kuok's Allgreen Properties ($262.02 psf ppr).

Said Mr Tan: 'People can see there is a willingness for government to truly want to satisfy demand for new HDB flats. They're ramping up supply of BTO (Build-to-Order) flats. In addition, there is anticipation of an increase in income ceiling for buyers of BTO flats as well as for DBSS (Design Build and Sell Scheme) flats and ECs (executive condominiums). So the end result of this will be that it will cannibalise some of the demand for mass-market private condos.'

CBRE Research executive director Li Hiaw Ho estimates Frasers Centrepoint's breakeven cost at about $700 psf.

Tripartite Developers released the Hedges Park Condominium project in April this year at an average price of $850 psf. Based on Urban Redevelopment Authority's May 2011 developer sales data, about 58 per cent of the 501-unit condo is sold.

Frasers Centrepoint's scheme for the plot tendered yesterday envisages a seven-storey project with about 430 units (ranging from one to four bedders). The project should be launch ready early next year.

[mr funny]

[mr funny]

http://www.straitstimes.com/Money/St...ry_680735.html

Jun 17, 2011

Cautious bids for site at Flora Drive

By Gabriel Chen & Esther Teo


A GOVERNMENT land site for a condominium at Flora Drive has drawn four bids in a public tender - all of which were below market expectations.

Frasers Centrepoint tabled the top offer of $131.38 million or $325 per sq ft per plot ratio (psf ppr), beating bids placed by Tripartite Developers, Leng Hoe Developments and Allgreen Properties.

But property consultants had expected the site to fetch $360 to $470 psf ppr when it was launched for sale in April.

Frasers Centrepoint's bid is also the lowest for a government residential land plot since November last year.

'It appears more cautious compared with recent bids for similar suburban land sites,' said Credo Real Estate's head of research and consultancy Ong Teck Hui, noting that bids for other sites have ranged from $367 to $402 psf ppr.

Mr Ong attributed the conservative offers for the Flora Drive plot to a combination of factors, including a greater supply of new HDB flats, more land being offered for sale by the Government, and a 'significant' number of new private homes currently being built.

All these 'would have led bidders to re-assess the situation and the amount to bid', he said.

Despite the more cautious bids, Mr Ong reckons the Government is still likely to award the site to the top bidder. In the past, the Government has, on occasion, declined to award sites because it considered the bids too low.

'I think it's still within the Government's price... They wouldn't want to restrict supply,' he said.

The top bid 'is on the low side of expectations but it's not ridiculously low'.

According to the Urban Redevelopment Authority, the site was offered for sale on a 99-year lease and the decision on the award of the tender will be publicised at a later date.

Yesterday, Frasers Centrepoint said that if it is awarded the site, it will build a 400-unit condominium comprising 12 seven-storey blocks.

'The site is well-connected to the PIE, TPE and ECP, and a short drive to recreational facilities such as the Pasir Ris Park, Changi Beach, Tanah Merah Country Club as well as major shopping malls and the Changi Airport,' the developer said in a statement.

[kane]

When developers bid conservatively on land next to MRT, that is the time when they've really turned cautious. 2H this year has a few interesting plots up for grabs. The bidding results will give a sense of their optimism/pessimism.

[CCR]

I thinkmthe Alexandra site will be damn hot

[kane]

I thinkmthe Alexandra site will be damn hot

I'm guessing 880psf ppr.

[Chonngpang]

http://www.businesstimes.com.sg/sub/...40740,00.html?

Published June 17, 2011

Developers turn cautious at Changi site tender

Top bid by Frasers Centrepoint just 1.3% above nearby plot sold last year

By KALPANA RASHIWALA


(SINGAPORE) Developers may be starting to get cautious with land bids for 99-year leasehold mass-market condo sites as they heed the pronouncements of National Development Minister Khaw Boon Wan, who took office just last month.

Frasers Centrepoint's top bid of $325.09 per square foot per plot ratio (psf ppr) at a state tender yesterday for a 99-year private condo plot at Flora Drive in the Upper Changi area was just 1.3 per cent higher than that for a nearby site sold in April last year (now being developed into Hedges Park Condominium).

This gap is narrower than the 10-22 per cent premiums achieved for other 99-year mass-market condo sites sold by the government in the past few weeks (in Woodlands, Buangkok and Pasir Ris) against comparable sites transacted last year.

Analysts also say that Frasers Centrepoint's top bid yesterday suggests that it worked in a safety margin for potential price softening. This marks a departure from developers' earlier strategy of assuming higher launch prices for their projects than prevailing prices in the respective locations when pricing land bids at state tenders.

Knight Frank chairman Tan Tiong Cheng said the outcome at yesterday's tender could mark a 'turning point' in the mass-market condo land price cycle.

Agreeing, Credo Real Estate executive director Ong Teck Hui said: 'I think going forward, it is quite likely that bids will not be as bullish as what we saw last year, for comparable sites.'

Said Mr Tan: 'Developers are acting cautiously and sensibly as they take heed of Mr Khaw's blog last week, warning about the dangers in the market, that property prices cannot keep on rising forever, of how we may hit a perfect storm,' he added.

'There will also be no shortage of supply,' he added. In August, the government will launch another plot next to the site tendered yesterday as part of the second-half 2011 Government Land Sales Programme.

The top bid at yesterday's tender by Frasers Centrepoint was just $1.43 psf ppr or 0.4 per cent higher than the next highest offer of $323.66 psf ppr by Hong Leong Group unit Tripartite Developers, which has a historically strong presence in the location, and which also clinched the nearby Hedges Park Condo plot last year.

This winning margin is one of the tightest ever seen at a state tender.

In addition, market watchers noted that the $325 psf ppr top bid yesterday was the lowest for 99-year private condo land sold so far this year.

Yesterday's tender drew two other bids - from Hiap Hoe unit Leng Hoe Development ($304.36 psf ppr) and Robert Kuok's Allgreen Properties ($262.02 psf ppr).

Said Mr Tan: 'People can see there is a willingness for government to truly want to satisfy demand for new HDB flats. They're ramping up supply of BTO (Build-to-Order) flats. In addition, there is anticipation of an increase in income ceiling for buyers of BTO flats as well as for DBSS (Design Build and Sell Scheme) flats and ECs (executive condominiums). So the end result of this will be that it will cannibalise some of the demand for mass-market private condos.'

CBRE Research executive director Li Hiaw Ho estimates Frasers Centrepoint's breakeven cost at about $700 psf.

Tripartite Developers released the Hedges Park Condominium project in April this year at an average price of $850 psf. Based on Urban Redevelopment Authority's May 2011 developer sales data, about 58 per cent of the 501-unit condo is sold.

Frasers Centrepoint's scheme for the plot tendered yesterday envisages a seven-storey project with about 430 units (ranging from one to four bedders). The project should be launch ready early next year.

.

'There will also be no shortage of supply,' he added. In August, the government will launch another plot next to the site tendered yesterday as part of the second-half 2011 Government Land Sales program me.

Is there any land in flora drive ? I thought this is the last GLS plot available in flora drive

[gav108]

Such comparisons may not be very accurate. Even if 2 sites are close by, they are not equal.

E.g. Comparing Seastrand and the Pasir Ris Drive 4 site. Though the latter is just next to Seastrand, it has a sea view, unlike Seastrand, which has no view. This may explain the 20% or so sharp increase in bid price.

Likewise the Flora Drive site, though relatively near Hedges Park, is right next to TPE, and far from the nearest bus stop, whereas Hedges park is right next to the bus stop and away from TPE.

Perhaps developers take into account such variations?

[ysyap]

Such comparisons may not be very accurate. Even if 2 sites are close by, they are not equal.

E.g. Comparing Seastrand and the Pasir Ris Drive 4 site. Though the latter is just next to Seastrand, it has a sea view, unlike Seastrand, which has no view. This may explain the 20% or so sharp increase in bid price.

Likewise the Flora Drive site, though relatively near Hedges Park, is right next to TPE, and far from the nearest bus stop, whereas Hedges park is right next to the bus stop and away from TPE.

Perhaps developers take into account such variations?

Developers will take into account every single thing that works for them and conveniently ignore those that work against them. Its all about marketing and advertising... They will make a no issue into something glorious and grand that some people actually buy those ideas! Buyers must always be careful not to be absorbed into these advertisements!

[mr funny]

http://www.todayonline.com/Business/Property/EDC110617-0000472/Flora-Drive-site-attracts-S$131,38m-top-bid

Flora Drive site attracts S$131.38m top bid

04:47 AM Jun 17, 2011


SINGAPORE - The Urban Redevelopment Authority (URA) yesterday closed the tender for a residential site on Flora Drive in Pasir Ris after receiving four bids.

The top bid, coming from Frasers Centrepoint, was S$131.38 million or S$325 psf per plot ratio. That will translate to a breakeven cost of about S$700 psf, analysts said.

The 99-year leasehold site was launched for public tender on April 26 under the Government Land Sales Programme. About 2.7 hectares in size, the site has a maximum permissible gross floor area of over 37,500 sq m and can yield around 380 apartments.

Mr Li Hiaw Ho, executive director of CB Richard Ellis, said its proximity to the Japanese Primary School will attract Japanese expatriates working in the industrial centres in the east. It is also accessible to shopping facilities via a short drive to Pasir Ris and Tampines new towns.

The site at Flora Drive is surrounded by condominiums currently under construction, such as Hedges Park and The Gale. Hedges Park condominium was launched for sale in April at S$850 to S$900 psf. To date, over 60 per cent of the units in the project have been sold. Other condos in the vicinity include Ferraria Park, Edelweiss Park and Dhalia Park.

The URA will award the tender for the Flora Drive site after the bids have been evaluated.

[rockinsg]

Such comparisons may not be very accurate. Even if 2 sites are close by, they are not equal.

E.g. Comparing Seastrand and the Pasir Ris Drive 4 site. Though the latter is just next to Seastrand, it has a sea view, unlike Seastrand, which has no view. This may explain the 20% or so sharp increase in bid price.

Likewise the Flora Drive site, though relatively near Hedges Park, is right next to TPE, and far from the nearest bus stop, whereas Hedges park is right next to the bus stop and away from TPE.

Perhaps developers take into account such variations?

Thats true..who won't pay 20% premium if can get sea view..

[linchong84]

Such comparisons may not be very accurate. Even if 2 sites are close by, they are not equal.

E.g. Comparing Seastrand and the Pasir Ris Drive 4 site. Though the latter is just next to Seastrand, it has a sea view, unlike Seastrand, which has no view. This may explain the 20% or so sharp increase in bid price.

Likewise the Flora Drive site, though relatively near Hedges Park, is right next to TPE, and far from the nearest bus stop, whereas Hedges park is right next to the bus stop and away from TPE.

Perhaps developers take into account such variations?

sea view and no sea view makes a lot of difference.. but near bus stop and not near bus stop is ...... the fact is there are quite a number of FH there.. and gale are not selling really high.. so hedges park pricing of around 8xxpsf is the max liao.. if developer bids any higher, they will have no profit margin..

[kingkong1984]

can do it monopoly style right?

the last bid is the highest... the rest all rise together.

[linchong84]

can do it monopoly style right?

the last bid is the highest... the rest all rise together.

that's provided that area is hot.. but apparently it's not.. hedges park 8xxpsf sell so long still 50% right? that area is now very segmented already, FH one class, 99L one class.. Better dun belong to the wrong class..

[gav108]

sea view and no sea view makes a lot of difference.. but near bus stop and not near bus stop is ...... the fact is there are quite a number of FH there.. and gale are not selling really high.. so hedges park pricing of around 8xxpsf is the max liao.. if developer bids any higher, they will have no profit margin..

they still can have a profit margin...just less if they bid more

Seastrand land was bought at a higher psf price than Hedges, but if i read correctly the Seastrand thread, it seems that it's currently sold at a lower aver psf than Hedges? Unless of course they r launching the lousiest facing units rite now...

n since developers can build 10% beyond gfa of balconies to sell to buyers, they will almost definitely gain this 10% profit + profits beyond land n building cost etc.

Singaporeans seem obsessed with convenience at their doorstep. if they complain no mrt within 400m, they will scream more if they need to walk 600++m just to reach a bus stop. don't even talk abt mrt...

[linchong84]

they still can have a profit margin...just less if they bid more

Seastrand land was bought at a higher psf price than Hedges, but if i read correctly the Seastrand thread, it seems that it's currently sold at a lower aver psf than Hedges? Unless of course they r launching the lousiest facing units rite now...

n since developers can build 10% beyond gfa of balconies to sell to buyers, they will almost definitely gain this 10% profit + profits beyond land n building cost etc.

Singaporeans seem obsessed with convenience at their doorstep. if they complain no mrt within 400m, they will scream more if they need to walk 600++m just to reach a bus stop. don't even talk abt mrt...

FEO style is always launch lousiest units first.. their pool facing are 9xx psf.. if i'm not wrong seastrand and hedges park around same psf anyway.. but seastrand really suck, the location is worse than the ec beside haha..

anyway developers will definitely make money yes.. but they have a profit margin target so they wun bid too high..

[gav108]

FEO style is always launch lousiest units first.. their pool facing are 9xx psf.. if i'm not wrong seastrand and hedges park around same psf anyway.. but seastrand really suck, the location is worse than the ec beside haha..

anyway developers will definitely make money yes.. but they have a profit margin target so they wun bid too high..

u went? actually i feel like going down after reading that they r selling at 800-850 psf? 1 bedder only 900 psf? must see to believe, given current market prices

[linchong84]

u went? actually i feel like going down after reading that they r selling at 800-850 psf? 1 bedder only 900 psf? must see to believe, given current market prices

Dun buy.. too many things working against it..

1. not near mrt
2. neighbour is an EC which will cost damn cheap
3. another 2 neighbours (pte) will have seaview
4. most cheap ones are hdb facing
5. of all 4 new launch (3 pte, 1 ec), this should be furthest from downtown east..

If buy for self stay, buy a pool view one.. If buy for rental, get an mrt one safer lah..

[devilplate]

u went? actually i feel like going down after reading that they r selling at 800-850 psf? 1 bedder only 900 psf? must see to believe, given current market prices

Still got a handful of buyers in the showflat now...go buy now...mtl...hehe

[ysyap]

Still got a handful of buyers in the showflat now...go buy now...mtl...hehe

You just came from there or you staying nearby? Showflat close liao lah unless FEO instruct it to be opened till midnight to secure as many deals as possible because something is gonna happen soon? Hmmm...

[devilplate]

You just came from there or you staying nearby? Showflat close liao lah unless FEO instruct it to be opened till midnight to secure as many deals as possible because something is gonna happen soon? Hmmm...

I drove past when on the way bck jus an hr ago n still got many cars parked along the road....mabe still open now....they wun close until all buyers r satisfied....i tink waterbank open past midnite last yr as well

[ysyap]

Actually my observation has been buyers of FEO projects generally are willing to overlook lousy location in return for the brand and assurance of quality. Greenwich in no man's land but selling $1500 psf . Anyway, maybe something drastic is in the pipeline! Watch this space.

[devilplate]

Actually my observation has been buyers of FEO projects generally are willing to overlook lousy location in return for the brand and assurance of quality. Greenwich in no man's land but selling $1500 psf . Anyway, maybe something drastic is in the pipeline! Watch this space.

No la....i believe ppl noes feo pattern tat 1st phase always cheapest n later on surely adjust the px up alot....greenwich was ard 1kpsf and creep up to 1400psf...tats 40% increase

Tennery aso increase from 1.1kpsf to 1.4kpsf....woodhaven from 800psf to 950-1kpsf now

[azeoprop]

Waterfront isle also 17% + 5% furniture discount. Now nothing left.

[linchong84]

thats why people like to buy FEO projects.. Don't need to depend on market for appreciation.. FEO will self-create paper gains for the 1st day buyers..

[ysyap]

Also the first buyer usually will get the lousier units but sitting a slight paper gains is probably better for investment than own stay!

[gav108]

FEO style is always launch lousiest units first.. their pool facing are 9xx psf.. if i'm not wrong seastrand and hedges park around same psf anyway.. but seastrand really suck, the location is worse than the ec beside haha..

anyway developers will definitely make money yes.. but they have a profit margin target so they wun bid too high..

seems u guys r rite abt worst units released first. if i read correctly, the 2 bedders r either facing hdb flats or facing a wall???

no view never mind. but if face hdb everyday prob will feel like u r staying in hdb

and a wall??? that's a first to me. no wonder so cheap. but really no thanks. can fight with that 600k hedges park 2 bedder that is rite next to the substation And bin centre.

[devilplate]

seems u guys r rite abt worst units released first. if i read correctly, the 2 bedders r either facing hdb flats or facing a wall???

no view never mind. but if face hdb everyday prob will feel like u r staying in hdb

and a wall??? that's a first to me. no wonder so cheap. but really no thanks. can fight with that 600k hedges park 2 bedder that is rite next to the substation And bin centre.

The layout gd but the siteplan suxx for seastrand....i tink hdb btos have better siteplan design...hahaha

Let me choose the best 1/2 bdr unit,i really duno how to choose....perhaps on the ground flr units wif the small pool outside their patio....hahaha

[kingkong1984]

seems u guys r rite abt worst units released first. if i read correctly, the 2 bedders r either facing hdb flats or facing a wall???

no view never mind. but if face hdb everyday prob will feel like u r staying in hdb

and a wall??? that's a first to me. no wonder so cheap. but really no thanks. can fight with that 600k hedges park 2 bedder that is rite next to the substation And bin centre.

can rent to maid agencies to house their maids... who cares right?

[gav108]

can rent to maid agencies to house their maids... who cares right?

headlines:
'pristine FEO condo becomes maid haven'
'maids frolicking by the pools'

sorry. i know this is mean...but this is the image conjured by your comment

but given the good internal layout i reckon it's possible to have 4 maids in each room on dble-deckers for the 2-bedder, plus possibly one more on the living room sofa, n they won't mind full-length windows facing walls

sorry! sorry!