Sign of Property Cooling?

[westman]

Source : http://www.ura.gov.sg/pr/text/2011/pr11-114.html

20 September 2011
Tender closing for commercial site at Robinson Road / Cecil Street

The Urban Redevelopment Authority (URA) closed the tender for the commercial site at Robinson Road / Cecil Street today.

The site at Robinson Road / Cecil Street was launched for public tender on 28 June 2011. The site was offered for sale on a 99-year lease.

LAND PARCEL AT ROBINSON ROAD / CECIL STREET

ALLOWABLE DEVELOPMENT : COMMERCIAL

SITE AREA : 2,932.0 m²
MAXIMUM PERMISSIBLE GFA : 32,839 m²
DATE OF LAUNCH : 28 JUNE 2011
DATE TENDER CLOSED : 20 SEPTEMBER 2011
LEASE PERIOD : 99 YEARS

Top bidder: Boo Han Holdings Pte. Ltd. and Pearlvine Pte Ltd
Tendered Sale Price : $311,777,000.00
Tendered Sale Price $PSM OF GFA : $9,494.11

As compare to the last tender (a white site at Jurong East) on 30 May 2011, Capitaland won it with $10,890.09 $PSM OF GFA.

Question:
1) Is market cooling now?

2) Any reason why a prime CCR Robinson GLS produce lower $PSM as compare to OCR?

[devilplate]

This site is commercial whereas jld site is white?

Tat time i also mentioned tat y guccoland won the white site at the tanjong pagar mrt for only 1kpsf

I guess jld white site prolly can make gd rental yield for the retail mall component lor

[westman]

This site is commercial whereas jld site is white?

Tat time i also mentioned tat y guccoland won the white site at the tanjong pagar mrt for only 1kpsf

I guess jld white site prolly can make gd rental yield for the retail mall component lor

Am gussing Capitaland to use it 100% for commercial/retail wor...
having said so, it just simply does not make sense for robinson site to fetch lower GLS bidding than JLD's site...

[devilplate]

Per my understanding, Capitaland plan to use it 100% fpr commercial wor...

Really duno man

Capland these days like anyhow bid one lor....firstly record enbloc farrer park, this one den bishan....whahaha

At least i can understand y feo bid high sometimes...lol

[devilplate]

Am gussing Capitaland to use it 100% for commercial/retail wor...
having said so, it just simply does not make sense for robinson site to fetch lower GLS bidding than JLD's site...

Actually it will only make sense for capland to build retail mall to the max for this site....if not cant justify the px tag they paid for

Ocr retail rental is almost comparable to orchard liao lor

[westman]

Really duno man

Capland these days like anyhow bid one lor....firstly record enbloc farrer park, this one den bishan....whahaha

At least i can understand y feo bid high sometimes...lol

Me too, really puzzled why? Bidding so high for what?
See lah, with robinson price not meeting the 1k mark, JLD site jialat liao???

Lend Lease must be laughing silently now....

[westman]

Ocr retail rental is almost comparable to orchard liao lor

Got meh?? Example(s)?

[devilplate]

Got meh?? Example(s)?

Duplicated....

[devilplate]

Got meh?? Example(s)?

Tats wat i gathered from news wor....there is an article in the newspaper sometime ago too saying suburban mall rental just slightly below orchard

[westman]

Tats wat i gathered from news wor....the an aicle in the newspaper sometime ago too saying suburban mall rental just slightly below orchard

Do you think this is another sign of cooling?

[devilplate]

Do you think this is another sign of cooling?

Nvr keep track on commercial.....nid to compare wif other example within cbd for a clearer pic?

[ikan bilis]

- commercial type more complex, got to check floor ratio for mall vs office space and etc
- prime office demand very unpredictable, "new prime" also had shifted to MBFC
- white site could be more flexible in designs, remember last time anal-yst also like got some write up of capitaland could leverage on few malls next to each other (Jurong entertainment ctr, imm, + this new 1)...
- CBD side construction could be more costly, could be also higher plot ratio demanding taller building..
- plus lots of other technical we might not understand...
=> so... very hard to conclude "cool" liow...

[westman]

- commercial type more complex, got to check floor ratio for mall vs office space and etc
- prime office demand very unpredictable, "new prime" also had shifted to MBFC
- white site could be more flexible in designs, remember last time anal-yst also like got some write up of capitaland could leverage on few malls next to each other (Jurong entertainment ctr, imm, + this new 1)...
- CBD side construction could be more costly, could be also higher plot ratio demanding taller building..
- plus lots of other technical we might not understand...
=> so... very hard to conclude "cool" liow...

Just in case Capland decide to throw in some residential units as well....
If commercial price keep dropping, then maybe it would be better for capland to have some residential???

[devilplate]

Just in case Capland decide to throw in some residential units as well....
If commercial price keep dropping, then maybe it would be better for capland to have some residential???

The problem is whether they can sell at 14xxpsf anot?

[westman]

The problem is whether they can sell at 14xxpsf anot?

I think URA 2013 master plan update might help all developers wor..
Did you noticed Capland has strategically positions itself "comfortably" at all "future growth zones"?

I wondered whether they know something that we are yet to know?
Anyway, 2013 is not that far away wor ....

[mygeemeel]

I think URA 2013 master plan update might help all developers wor..
Did you noticed Capland has strategically positions itself "comfortably" at all "future growth zones"?

I wondered whether they know something that we are yet to know?
Anyway, 2013 is not that far away wor ....

Anything on Turf City in the new Masterplan?

[devilplate]

Anything on Turf City in the new Masterplan?

Havent update la

[westman]

Anything on Turf City in the new Masterplan?

Bro, you damn Kanjong Spiders....

Already said 2013 lor...

[mygeemeel]

Hahahaha. Paiseh.

[ikan bilis]

you guys complaining capitaland paying too much hur ??...
later on sekali/what-if they can find some way (after working with SMRT) to run some passage from Jurong East MRT station directly into their shopping mall then you know... May be Jurong East Station human traffic alone worth > 1Kpsf liow...

[RE_Owner]

Liew sound very confidence with spore market in recent report. JDL is unpolished gem with unlimited potential where TP is jus another piece of land in prime district

[Allthepies]

yup better to position in confirmed future growth area rather than stable area : )

[yaozong7]

Suburban retails malls have quite high rental yield. Just take a look at any of the major suburban malls eg Jurong Point, Causeway Point, Compass Point, Junction 8, White Sands, Tampines etc and they are all jam packed.

Asking rental for the newer suburban malls also sky high leh, esp for smaller lots. They can go to betw $40 to $50 psf even for Basement 1...

If I were Capland, I will also bid higher for Jurong rather than commercial CCR. Haha

[Jadey]

Shake up in the banking industry is most likely to depress rents for prime office space in CBD, so bidder will have to be realistic about potential of this plot.

For the JLD plot, human traffic is expected to be busy 7 days a week, while CBD is only busy during the weekdays. So cannot compare.

[Pro888]

I think URA 2013 master plan update might help all developers wor..
Did you noticed Capland has strategically positions itself "comfortably" at all "future growth zones"?

I wondered whether they know something that we are yet to know?
Anyway, 2013 is not that far away wor ....

Future growth will be suburban areas for Pte condo & Commercial. Malls that are closer to most of us.

Town ctrs & near mrt will see aggressive bidding. EC also.

Hopefully Capland can also go to Yishun and build mall, but stronghold for FEO there.

OKH developmentis very active there for industrial (not mistaken 3 sites, 2 just won Woodlands ave 12 and 1 currently building, Yishun ave 9)