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Thread: 3 bids received for Upper Serangoon Rd land parcel

  1. #1
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    Default 3 bids received for Upper Serangoon Rd land parcel

    3 bids received for Upper Serangoon Rd land parcel
    By Arthur Sim | Posted: 07 September 2011 2245 hrs

    SINGAPORE : A residential land site for condominium development at Upper Serangoon Road received just three bids at the close of its tender on Wednesday.

    The top bid of S$270.3 million from Allgreen Properties is also below market expectations.

    The 265,013 square feet site has a maximum gross floor area of 927,545 square feet.

    Thus, the bid price by Allgreen works out to be a unit land price of S$291 per square foot per plot ratio (psf ppr).

    This is lower than the S$300 psf ppr property consultants had earlier projected for the lower end bids in July.

    The top end of the projected bids was expected to be around S$450 psf ppr.

    The site was put up for sale by the Housing and Development Board (HDB) through the Government Land Sales (GLS) programme in July.

    A consortium which included Far East Civil Engineering put in the second highest bid of S$252.8 million while CEL Development bid came in at S$242 million.

    Chia Siew Chuin, director of research & advisory at Colliers International, said that the top bid of S$291 psf ppr is the lowest unit land price recorded since August 2009 - when the private residential property market was just in the nascent phase of recovery after hitting the trough.

    It is also about 9.1 per cent lower than the S$320 psf ppr achieved for a non-landed residential plot located nearby at Serangoon View when it was sold to a consortium including Frasers Centrepoint, Far East Civil Engineering and Sekisui House in November 2010.

    Ms Chia said that the low bids "reinforce developers' increasingly cautious market outlook amid heightened market uncertainties".

    "The close succession of tender closings for the subject site and a similar plot at Punggol Way/Punggol Field could have contributed to the tepid response to the subject site," she added.

    Nicholas Mak, executive director for research and consultancy at SLP International Property Consultants, said the low number of bids received could be because some developers may consider this site less attractive than some of the other land parcels on the GLS Confirmed List for the second half of 2011.

    "They could be saving their resources for the other site tenders which will be launched soon," he added.

    He said the lower tender price may not necessarily lead to lower home prices because Allgreen Properties would likely sell the condominium to be developed on this site at the going market price at the time of its launch.

    Based on Wednesday's tender, the winning bid will translate to an approximate breakeven price of between S$630 and S$660 psf.

    - CNA/ms
    BE CENTRED BY ALL AT THE FRINGE OF THE CITY @

  2. #2
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    why didn't the far east consortium "defend" the price of boathouse? they came in 2nd at 273psf.


    Quote Originally Posted by sleek
    3 bids received for Upper Serangoon Rd land parcel
    By Arthur Sim | Posted: 07 September 2011 2245 hrs

    SINGAPORE : A residential land site for condominium development at Upper Serangoon Road received just three bids at the close of its tender on Wednesday.

    The top bid of S$270.3 million from Allgreen Properties is also below market expectations.

    The 265,013 square feet site has a maximum gross floor area of 927,545 square feet.

    Thus, the bid price by Allgreen works out to be a unit land price of S$291 per square foot per plot ratio (psf ppr).

    This is lower than the S$300 psf ppr property consultants had earlier projected for the lower end bids in July.

    The top end of the projected bids was expected to be around S$450 psf ppr.

    The site was put up for sale by the Housing and Development Board (HDB) through the Government Land Sales (GLS) programme in July.

    A consortium which included Far East Civil Engineering put in the second highest bid of S$252.8 million while CEL Development bid came in at S$242 million.

    Chia Siew Chuin, director of research & advisory at Colliers International, said that the top bid of S$291 psf ppr is the lowest unit land price recorded since August 2009 - when the private residential property market was just in the nascent phase of recovery after hitting the trough.

    It is also about 9.1 per cent lower than the S$320 psf ppr achieved for a non-landed residential plot located nearby at Serangoon View when it was sold to a consortium including Frasers Centrepoint, Far East Civil Engineering and Sekisui House in November 2010.

    Ms Chia said that the low bids "reinforce developers' increasingly cautious market outlook amid heightened market uncertainties".

    "The close succession of tender closings for the subject site and a similar plot at Punggol Way/Punggol Field could have contributed to the tepid response to the subject site," she added.

    Nicholas Mak, executive director for research and consultancy at SLP International Property Consultants, said the low number of bids received could be because some developers may consider this site less attractive than some of the other land parcels on the GLS Confirmed List for the second half of 2011.

    "They could be saving their resources for the other site tenders which will be launched soon," he added.

    He said the lower tender price may not necessarily lead to lower home prices because Allgreen Properties would likely sell the condominium to be developed on this site at the going market price at the time of its launch.

    Based on Wednesday's tender, the winning bid will translate to an approximate breakeven price of between S$630 and S$660 psf.

    - CNA/ms

  3. #3
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    Maybe too much land coming up in the area. Cannot keep defending mah.
    Or maybe FEO not sanguine on the Northeast part of Singapore. There is really a lot of supply coming up in Serangoon, Punggol, Sengkang, Hougang, Tampines etc. It's like every other day there is a new launch in these areas, be it HDB or EC or condo.

    Only 3 bids and all 3 bids are equally pathetic. It just shows developers no longer upbeat about that area's potential.

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    this will put pressure on boathouse residences...

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    Actually, maybe not, if the economy still doing well, they could launch higher than boathouse and get fatter profit.

    If economy not as good, they could still launch at a 10% discount vs boathouse and yet still get profit.

    Win win low risk bid for this land.


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    FH or LH project??

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    Quote Originally Posted by Rysk
    FH or LH project??
    isit a trick question???

    since when we see a FH GLS?

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    Sengkang and Punggol oversupply as mentioned earlier.....

    Too many developments that are beginning to look too similar.....

    If want to buy in that area then buy developments that are unique like H2O, i.e. integrated landscaping to the river a.k.a longkang......

    The next to MRT fervor is also fading from what I can tell.....

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    Rather be near future mall than next to a longkang. I just don't rate h20 highly at all. Their architecture is hardly unique.

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    There are 7 mass market projects (including ECs) in this area all within walking distance of Buangkok MRT, Austville being the furthest away. It is really too saturated already. I won't go for this area lah.

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    Could it be because of the 20% jump in DC rates announced few days ago? Hence, developers bid 20% lower for land to sell at same price and earn same profit?

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    Quote Originally Posted by linchong84
    Could it be because of the 20% jump in DC rates announced few days ago? Hence, developers bid 20% lower for land to sell at same price and earn same profit?
    DC does not apply to white site

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    Quote Originally Posted by SpinCity
    DC does not apply to white site
    I'm curious, when does DC apply. Some GLS are white sites, some aren't yes?

    of course en bloc will definitely involve DC yes?

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    Quote Originally Posted by kane
    Rather be near future mall than next to a longkang. I just don't rate h20 highly at all. Their architecture is hardly unique.
    Architecture is for people to hao-lian,

    "See that funny looking building there? It's my condo! It stands out like a porcupine!"

    What I was referring to earlier was the integrated landscaping, i think H20 is the second if not the first to have a private development integrating with the natural landscape.

    Landscaping and feel is important coz if a place is too attas or class to match up to architecture, thiis will mean in and out of your condo also gotta dress up to prada, gucci, oakley, LV then abit meaningless..... I will rather walk in and out of my place in berms and slippers.

    Supply Demand Supply Demand....

    Buy where supply is limited and demand is bottled up...... North is! but definitely not North-East.

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    Quote Originally Posted by kane
    I'm curious, when does DC apply. Some GLS are white sites, some aren't yes?

    of course en bloc will definitely involve DC yes?
    In general, DC is applicable when you want to build more than the maximum allowable at the time the land/property was acquired
    In other words, the difference between the maximum allowable plot ratios of now and then

  16. #16
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    Quote Originally Posted by solsys
    Architecture is for people to hao-lian,

    "See that funny looking building there? It's my condo! It stands out like a porcupine!"

    What I was referring to earlier was the integrated landscaping, i think H20 is the second if not the first to have a private development integrating with the natural landscape.

    Landscaping and feel is important coz if a place is too attas or class to match up to architecture, thiis will mean in and out of your condo also gotta dress up to prada, gucci, oakley, LV then abit meaningless..... I will rather walk in and out of my place in berms and slippers.

    Supply Demand Supply Demand....

    Buy where supply is limited and demand is bottled up...... North is! but definitely not North-East.
    there's plenty of new development in sengkang and punggol, some nearer the central and MRT than others. H2O just isn't up there for me.

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