Clementi condo site attracts top bid of $408m

[reporter2]

http://www.businesstimes.com.sg/sub/...84740,00.html?

Published January 13, 2012

Clementi condo site attracts top bid of $408m

By MICHELLE TAN


A 99-YEAR leasehold condominium site along Jalan Lempeng has attracted a top bid of $408 million in an eight-cornered bidding session among developers.

IOI's property unit, Multi Wealth (Singapore) Pte Ltd, was the top bidder for the residential land parcel, offering $554.41 per square foot per plot ratio (psf ppr), 13 per cent higher than the next highest bid of $490.50 psf ppr by joint bidders UOL Venture Investments Pte Ltd, Singapore Land's SL Development Pte Limited, and Kheng Leong unit Russville Pte Ltd.

The lowest bid of $260.1 million was put in by Soilbuild Group Holdings Ltd, translating to $353.44 psf ppr.

Highlighting that the number of bids was within expectations, Lee Sze Teck, senior manager of research and consultancy at DWG, said: 'The level of
interest and price level indicate that developers think that demand in the mass market segment is still robust.'

Mr Lee said the Clementi estate has not had a condominium project launch for many years and the site is likely to benefit from pent-up demand from residents residing in Clementi. He cited the recent DBSS project, Trivelis, as a 'good example'.

Credo Real Estate executive director Ong Teck Hui agreed, saying: 'As expected, the more attractive GLS (government land sales) residential sites will draw more bidders with some being prepared to bid more optimistically than others.

'The subject site is a reasonable distance from Clementi MRT station, the bus interchange, and the amenities in Clementi Town Centre.'

He added that there are relatively fewer GLS residential sites available in the west compared to other locations, especially the north-east and east where most of the tendered sites were located.

Consultants estimate the break-even point for the future development to be between $950 and $1,000 psf and the selling price would likely be around $1,200 to $1,300 psf.

With a total site area of 262,828.6 square feet (sq ft), the plot with a maximum plot ratio of 2.8 times can be built up to 735,920.1 sq ft and yield about 685 apartment units.

[reporter2]

http://www.straitstimes.com/Money/St...ry_754949.html

$408m bid for rare condo site in Clementi

8-way tussle for plot in mature estate, close to MRT station

Published on Jan 13, 2012

By Esther Teo, Property Reporter


A RARE condominium site in Clementi has attracted a top bid of $408 million in an eight-way tussle - an indication that builders are still bullish on mass market home demand.

Malaysian developer IOI Properties' unit Multi Wealth (Singapore) lodged the top bid of $554 per sq ft (psf) per plot ratio (ppr) for the 2.4 ha site at Jalan Lempeng - 13 per cent more than the $361 million joint bid by UOL Group, Singapore Land and Kheng Leong. This is the highest unit price submitted for a government condo land parcel since August last year.

Other bidders for the site, which can yield 685 units, include Guocoland, MCL Land, Mezzo Development and Soilbuild Group Holdings.

Soilbuild lodged the lowest bid of $260.1 million.

Experts said that the healthy level of interest indicates that developers think that demand in the mass market segment is still robust.

But the higher interest is also because sites in a mature estate close to tertiary educational institutions rarely hit the market, they added.

Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, said that the Clementi estate has not had a condo project launch in many years. The site is also near to Clementi MRT station.

'There is likely to be pent-up demand from the residents living in Clementi. The recent Design, Build and Sell Scheme project, Trivelis, is a good example,' he added. Trivelis in Clementi was more than two times oversubscribed last October.

Mr Lee expects the breakeven price of the latest project to be about $1,000 psf with the selling price likely to be around $1,200 and $1,300 psf.

Mr Ong Teck Hui, head of research and consultancy at Credo Real Estate, attributes the strong interest and high bids to the attractiveness of the site. There are also fewer sites available in the west compared with other locations, especially in the north-east and east where the most recent tender sites have been located, he said.

'This tender indicates that many developers are still fairly positive about the market and if this continues for other land tenders, it could lead to buyers reading the market positively as well,' Mr Ong said.

Ms Chia Siew Chuin, Colliers International's director of research and advisory, however, said that the difference in bids reflects IOI Properties' keen interest and that other developers continued to be more cautious.

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[kane]

$554psf sounds pretty high.

[DKSG]

$554psf sounds pretty high.

Soon you will see $1,300++ in Clementi!

DKSG
Stay Calm and Cool

[hyenergix]

Rare site indeed in Clementi. Nearby The Parc and Hundred Trees are hitting $1100 psf+ for 2 bedders. This one should be able to reach $1,200 psf+. This will provide price support for the Hong Leong Gardens Shopping Center new launch - perhaps MM units around $1,500 psf.

[Jadey]

Rare site indeed in Clementi. Nearby The Parc and Hundred Trees are hitting $1100 psf+ for 2 bedders. This one should be able to reach $1,200 psf+. This will provide price support for the Hong Leong Gardens Shopping Center new launch - perhaps MM units around $1,500 psf.

Parc and HT are freehold and 999LH, whereas this is 99LH.

[irisng]

If given Clementi and Bedok locations, which area will you choose. Let set aside all other nearby amenities.

[kane]

Developers are short of land bank or are they still bullish?

[stl67]

If given Clementi and Bedok locations, which area will you choose. Let set aside all other nearby amenities.

I prefer Clementi for personal reason.

[CCR]

Rare site indeed in Clementi. Nearby The Parc and Hundred Trees are hitting $1100 psf+ for 2 bedders. This one should be able to reach $1,200 psf+. This will provide price support for the Hong Leong Gardens Shopping Center new launch - perhaps MM units around $1,500 psf.

how much do you think then will be the new condos that will launch at Jurong gateway? from the masterplan there are 1000 earmarked near the Jrong East MRT station... 1500 psf? abit hihg right?

[hyenergix]

how much do you think then will be the new condos that will launch at Jurong gateway? from the masterplan there are 1000 earmarked near the Jrong East MRT station... 1500 psf? abit hihg right?

The later it is launched, the higher it will be. $1800 psf could be possible for MM at high floors and with good facing. $1500 psf is really on the safe side of estimate. Jurong East and Clementi don't have condos launch for several years. The HDBs can be easily rented out. The pent-up demand by HDB upgraders is there.

[hyenergix]

Parc and HT are freehold and 999LH, whereas this is 99LH.

The concept of 99LH doesn't seem to apply to those near MRT stations nowadays because of ease of enbloc. So the Clementi plot is similar to The Parc and Hundred Trees.

[Rosy]

The concept of 99LH doesn't seem to apply to those near MRT stations nowadays because of ease of enbloc. So the Clementi plot is similar to The Parc and Hundred Trees.

is there any 99LH OCR project enbloc before? i cannot recall any

[latour]

The concept of 99LH doesn't seem to apply to those near MRT stations nowadays because of ease of enbloc. So the Clementi plot is similar to The Parc and Hundred Trees.

LH99 must be near, next to MRT station in order to sustain long term investment in rental and value.

[Rosy]

The later it is launched, the higher it will be. $1800 psf could be possible for MM at high floors and with good facing. $1500 psf is really on the safe side of estimate. Jurong East and Clementi don't have condos launch for several years. The HDBs can be easily rented out. The pent-up demand by HDB upgraders is there.

MM in the CBD area barely breach 2k psf so i think you have overestimated your figures

[irisng]

I prefer Clementi for personal reason.

I heard that Bedok residents complain about something like "flies" (but not dangerous), can't remember the name, wonder whether does it affect all the residents there?

[ikan bilis]

i was expecting clementi site's highest bid at S$600psf.... next to nanhua primary got no value meh ??...

[hyenergix]

MM in the CBD area barely breach 2k psf so i think you have overestimated your figures

Hopefully I'm wrong even on e $1600 psf. Sites with mall n mrt n interchange seem to b in great demand. Prices r juz crazy. $1000 psf for OCR was quite crazy 3 years ago, now it is normal.

[CCR]

Hopefully I'm wrong even on e $1600 psf. Sites with mall n mrt n interchange seem to b in great demand. Prices r juz crazy. $1000 psf for OCR was quite crazy 3 years ago, now it is normal.

Ya man... Do you still remember centro... At amk.... At 1100 we say SIAO....

[CCR]

is there any 99LH OCR project enbloc before? i cannot recall any

Sure there are... All the old privatized hudc condo like farrer court, minion, bedok reservoir?

[kane]

i was expecting clementi site's highest bid at S$600psf.... next to nanhua primary got no value meh ??...

not right next to mrt ma. $600psf would be silly bid, as the break even has to be maybe $900psf. not much margin for error.

[Rosy]

Sure there are... All the old privatized hudc condo like farrer court, minion, bedok reservoir?

Thanks but i am refering to pte condo

[Rosy]

not right next to mrt ma. $600psf would be silly bid, as the break even has to be maybe $900psf. not much margin for error.

Partly due to cm5. A reduction of 100-150psf ppr.

[kane]

probably. re-base the market.

[latour]

probably. re-base the market.

its right to think that developers' bid (and garment) are 'trying' to re-base the market base on land bid prices, therefore potentially resulting in thinking of selling price should be lower. However, remember that the developers margin is still maintain no matter what. It does not make sense for developer to cut margin with a lower bid land price. What do you think they (developers + garment) are doing?

[kane]

its right to think that developers' bid (and garment) are 'trying' to re-base the market base on land bid prices, therefore potentially resulting in thinking of selling price should be lower. However, remember that the developers margin is still maintain no matter what. It does not make sense for developer to cut margin with a lower bid land price. What do you think they (developers + garment) are doing?

if the public decides to bite those same prices, then they have enriched the developers' coffers.

[latour]

if the public decides to bite those same prices, then they have enriched the developers' coffers.

enrich the developers' coffers - for sure. reduce margin will not be the case since developers deem market is now more competitive, construction cost is high and less margin for error etc. just look at WaterTown by FE, lauched and sold about 160/250 yesterday at about avg of $1200+/psf (i recieved a sms the day before launch, and price is start from $1080/psf).
Climenti area price will be...?

[reporter2]

http://www.todayonline.com/Business/...ndominium-site

Malaysia's IOI submits top bid for Clementi condominium site

04:46 AM Jan 13, 2012


SINGAPORE - The government tender for a 99-year leasehold condominium site in Jalan Lempeng near Clementi town centre attracted eight bids at the close yesterday, with the top price of S$408 million coming from Multi Wealth, a wholly-owned unit of Malaysian developer IOI Properties.

Multi Wealth's bid is 13 per cent and 22 per cent above the second- and third-highest bids, respectively, reflecting the keen interest of the company amid continued cautiousness among other developers, said Ms Chia Siew Chuin, director of research & advisory at property consultancy Colliers International.

Mr Lee Sze Teck, senior manager of research and consultancy at property firm DWG, said the Clementi estate had not had a condominium project launch for many years and the Jalan Lempeng site would likely draw pent-up demand from the residents in the area. He cited the recent DBSS project, Trivelis, as an example.

The 2.4-hectare site at Jalan Lempeng, put up for sale under the Confirmed List of the 2nd half 2011 Government Land Sales (GLS) Programme, can yield about 685 housing units, according to the Housing and Development Board, the sales agent for the tender.

At the bid price, the breakeven is estimated to be S$1,000 psf and the selling price for the project is likely to be around S$1,200 to S$1,300 psf, Mr Lee said.

The tender will be awarded at a later date, the HDB said.

[reporter2]

http://www.todayonline.com/Business/...ndominium-site

Malaysia's IOI wins bid for Clementi condominium site

01:45 PM Jan 17, 2012


KUALA LUMPUR - IOI Corp, a Malaysian plantation and property group, said it won a site in Singapore by tender for S$408 million, according to a company statement in Kuala Lumpur today.

The 99-year leasehold parcel of land - measuring 24,418 square meters and located at Jalan Lempeng - is earmarked for a condominium development, IOI said.

The site, near Clementi town centre, can yield about 685 housing units, according to the Housing and Development Board, the sales agent for the tender.

Mr Lee Sze Teck, senior manager of research and consultancy at property firm DWG, said the Clementi estate had not had a condominium project launch for many years and the Jalan Lempeng site would likely draw pent-up demand from the residents in the area. He cited the recent DBSS project, Trivelis, as an example.

At the bid price, the breakeven is estimated to be S$1,000 psf and the selling price for the project is likely to be around S$1,200 to S$1,300 psf, Mr Lee said.