Hong Leong submits top bid for government land site

[sleek]

Hong Leong submits top bid for government land site
By Venus Hew | Posted: 10 January 2012 2131 hrs

SINGAPORE: A Hong Leong Group consortium has submitted the top bid of S$388.11 million for a government land sales site at Mount Vernon Road.

The public tender received only five bids, reflecting what some analysts said is the cautious attitude of developers following the latest property measures.

Property analysts CBRE Research also noted that the top bid is also about 20 per cent lower than a neighbouring site that was sold in April 2011.

It estimated that the condominium units could sell for between S$1,100 to S$1,200 per square feet.

- CNA/ck

[azeoprop]

I will be the first to snap this up if launch less than 1000psf hee hee....

[azeoprop]

Looks like Minton's city view will be blocked!

[mcmlxxvi]

I was just wondering...what amenities will be around this condo?

[azeoprop]

Site information
http://www.ura.gov.sg/sales/MtVernon...intro(CL).html

Not much around except the mrt as of now, but high potential for the future as big plot of ex cemetry land awaiting to be built.

[Rezo]

Since when Hong leong involve in property???

[kane]

What's their cost per psf?

[ysyap]

Looks like Minton's city view will be blocked!

Depending on how many storeys for this project lah but still its quite far lah...

[Douk]

Since when Hong leong involve in property???

Grandfather time..

[p3nboy]

Business Times - 11 Jan 2012


Condo plot draws lower top bid as caution prevails

Bartley site tender gets five bids, down from eight for nearby plot earlier

By KALPANA RASHIWALA

(SINGAPORE) The latest tender results confirm a softening in land prices as
developers remain cautious after the additional buyer's stamp duty kicked in
last month. The tender for a 99-year-leasehold private condo plot near
Bartley MRT Station has drawn a top bid 20.2 per cent lower than what a
diagonally opposite site sold for about 10 months ago. The latest tender
drew five bids, down from eight in the earlier one.

The same bidder - a Hong Leong Holdings, City Developments and TID
consortium - offered the highest price for both sites.

'This shows even an incumbent player going in to protect its turf has to be
very realistic. It reflects the air of caution in the market,' said SLP
International managing director Peter Ow.

The consortium is getting ready to launch its project on the earlier site,
Bartley Residences. Word on the street is that the average price for the
702-unit condo may be about $1,200 per square foot (psf). The development
will have one to four-bedroom units.

Market watchers said yesterday that had Hong Leong not bid for the latest
plot at Mount Vernon Road, it would have faced the risk of the price for
Bartley Residences being undercut by a competitor.

Instead, by emerging as the top bidder at yesterday's tender, Hong Leong
will be able to average down its breakeven cost and 'can manage its sales
better', as a seasoned agent put it. 'They don't have to be forced into a
very competitive situation when setting the price for The Bartley
Residences,' he added.

Property consultants' estimates of Hong Leong's breakeven cost for the Mount
Vernon Road site range from $880 to $1,000 psf.

Hong Leong Holdings' head of sales and marketing Betsy Chng said if the
consortium is awarded the Mount Vernon Road site, 'it will no doubt help
strengthen Hong Leong's position in the area, including the group's upcoming
launch of The Bartley Residences'.

The consortium's top bid yesterday, of about $388.1 million or $495.01 per
square foot per plot ratio (psf ppr), was 20.2 per cent lower than the
$620.61 psf ppr it paid for the Bartley Residences plot at a tender closing
in late March last year. Both sites have 99-year-leasehold tenure.

Property consultants polled by BT yesterday assigned a 5-10 per per cent
difference in value of the two sites based on location. Worsening sentiment
would account for the remaining difference in price.

The Bartley Residences plot is deemed superior, being right next to the MRT
station and surrounded by a landed-housing estate. The Mount Vernon Road
plot is a little further away from the MRT station and in a more mixed sort
of location - surrounded by Bartley Secondary School, SPCA and the Gurkha
Cantonment.

The top bid at yesterday's tender was 7.6 per cent higher than the second
highest bid of $460.19 psf ppr from a partnership between Frasers
Centrepoint unit Opal Star and Lum Chang Building Contractors. IOI
Properties' unit Multi Wealth (Singapore) emerged in third place, with a
$446.41 psf ppr bid. Hongkong Land unit MCL offered $373.71 psf ppr. The
lowest bid of $319.88 psf ppr was from Mezzo Development.

Credo Real Estate executive director Ong Teck Hui said many developers could
have given yesterday's tender a miss due to higher market risks arising from
a substantial investment, pointing to the $388.1 million top bid. 'In
comparison, the typical absolute prices of most suburban sites at $100-200
million are more manageable.'

Market watchers expect the cautious bidding mood to prevail at upcoming
state land tenders for condo plots - such as for a site in Clementi (tender
closing tomorrow) and another plot at Kovan Road/Simon Road (tender closing
on Jan 18). 'But response could vary, with greater participation and more
optimistic pricing for the more attractive sites,' said Mr Ong.

[kane]

So their cost per unit would be somewhere in the region of 750-800psf. Let see what price they plan to sell it at.

[Adva181]

Since when Hong leong involve in property???

Maybe when u free u can take a walk around Changi areas.
ABCDEFG...


Long time big player. Just that usually he send CDL to bid instead. Haha

[Adva181]

Why are analyts predicting construction n marketing cost to be $350-$400psf ppr? It only used to be $200-$250 3-4 years back. Even if u factor in inflation n increase price for materials, u dun get an additional $200...

Dun they know that the construction industries are moving alot into value engineering whereby outdated costly materials are replaced by newer cheaper n quicker alternative? They used to be marble n now designer homogenous tiles. There used to be parquet n now engineered timber. Boo boo

Or are the developer reporting a higher construction cost to hide their big fat profit???

[azeoprop]

I think labour cost increase alot as well due to recent restrictions and levy on foreign workers and possible future minimum wage policy.

[ikan bilis]

guys... tomorrow jalan lempeng/clementi how much you think will be the psf bid price??...

me bet 600psf....

[Allthepies]

guys... tomorrow jalan lempeng/clementi how much you think will be the psf bid price??...

me bet 600psf....

this will be an interesting piece of land

[ikan bilis]

this will be an interesting piece of land

$554 psf....

haha... how that Park West go en-bloc now??... ask them sell at 400psf want or not??...

[CCR]

West Coast area condo prices going to drop 20%.... Carabelle prices will drop... Clementi DBSS will also have to drop prices..... $554 + 300 construction costs max cost = 854 psf...

[Rosy]

West Coast area condo prices going to drop 20%.... Carabelle prices will drop... Clementi DBSS will also have to drop prices..... $554 + 300 construction costs max cost = 854 psf...

Why Carabelle will drop based on this winning bid price? one is FH and this one is 99LH

[teddybear]

Nowsadays new 99LH much much more expensive than old FH mah! Don't believe? You see, Orchard Residences $4xxx psf new. Across the road the other side Cascuden old FH only about $2500 psf.

So if new 99LH $850 psf, old FH $700 psf?

Why Carabelle will drop based on this winning bid price? one is FH and this one is 99LH

[CCR]

Nowsadays new 99LH much much more expensive than old FH mah! Don't believe? You see, Orchard Residences $4xxx psf new. Across the road the other side Cascuden old FH only about $2500 psf.

So if new 99LH $850 psf, old FH $700 psf?

Hey Teddy i want to tap you brain a bit.... and other forummers who know CCR property...

Why are prices at Cuscaden residence and Cairnhill Crest so low?
both projects looks ok to me especially Cuscaden....

[CCR]

Hey Teddy i want to tap you brain a bit.... and other forummers who know CCR property...

Why are prices at Cuscaden residence and Cairnhill Crest so low?
both projects looks ok to me especially Cuscaden....

Anyone can help?