Govt rolls out 5 private housing sites

[reporter2]

Govt rolls out 5 private housing sites

The Business Times – May 16, 2012


For the fourth consecutive month, the government has announced the launch of 99-year leasehold private housing sites under its land sales programme on the same day as it released numbers on buoyant monthly developers’ sales figures.

In the latest instalment yesterday, the government rolled out five sites – one on the confirmed list and the other four on the reserve list – that can potentially generate about 2,100 homes.

The confirmed list plot is at Pheng Geck Avenue near Potong Pasir MRT Station. Its tender closes on June 28. This is the third condo plot that the government is selling in the location in two years.

A land parcel next door (at Tai Thong Crescent) is one of the four made available for application on the reserve list yesterday. It is zoned for residential use with commercial use at the first storey.

The government will launch a reserve-list site for tender only if it receives an application from a developer with an undertaking of a minimum price that is acceptable to the state.

Two other reserve-list plots are at Kim Tian Road (a stone’s throw away from Tiong Bahru MRT Station and Tiong Bahru Plaza) and Prince Charles Crescent (about 400-500 metres from Redhill MRT Station). The fourth reserve list site is at Sengkang West Way, near the H2O Residences condo project.

Of the four reserve-list sites, SLP International executive director Nicholas Mak and R’ST Research director Ong Kah Seng both ranked the Kim Tian Road plot as the most attractive or likely to be triggered, followed by the sites at Prince Charles Crescent, Tai Thong Crescent and Sengkang West Way, in that order.

The confirmed list site at Pheng Geck Avenue is next to the condo plot sold at a state tender in August last year to Tuan Sing for about $567 per square foot per plot ratio (psf ppr), which in turn is close to an earlier plot sold for $607 psf ppr to Qingdao Construction at a June 2010 tender (now being developed into Nin Residence).

Six property consultants polled by BT yesterday expect top bids for the Pheng Geck Avenue plot of $550-810 psf ppr. Based on the top end of that range, forecast by Knight Frank, the average selling price for a new project on the site could be close to $1,450 psf. Some analysts including DWG senior manager (research and consultancy) Lee Sze Teck predict 10-15 bids.

Most consultants suggest that the adjacent reserve-list plot at Tai Thong Crescent – if it were triggered today – could command a higher psf ppr price given its commercial component on the first storey. Street-level shop units typically command a higher price than apartments, and generally residential units in mixed developments too have been highly sought after in recent months – as seen in the case of Hillier, Promenade@Pelikat, Watertown and Katong Regency.

Forecasts of top bids for the Tai Thong Crescent plot range from about $550 psf ppr to $800 psf ppr, with some consultants predicting 10-15 bids, if the site were to be launched in the current market.

Analysts gave rave reviews on the Kim Tian plot, a short walk from Tiong Bahru MRT Station. “The site is centrally located, and the Tiong Bahru/Kim Tian area is fairly niche and self-contained with eateries, shops and conservation apartments,” said Mr Ong of R’ST.

However, analysts differed widely in their expectations of how much the plot could sell for if it were to be tendered out today – from $580 psf ppr to $870 psf ppr.

For the site at Prince Charles Crescent, expectations of the winning bid are in the $650-900 psf ppr range. The site is near a plot at Jervois Road picked up by Singapore Land for $881 psf ppr at a state tender in February. Closer to Redhill MRT Station, City Developments bought a plot (next to Ascentia Sky condo) for $754 psf ppr in December.

Analysts priced the Sengkang West Way plot at $336-440 psf ppr. While the site is not near an MRT or LRT station, Credo Real Estate executive director Ong Teck Hui noted that it is located in a growth area and a new condo on the site would find demand from upgraders.

Commenting on the government’s decision to time the launch of private housing sites on the same day as strong monthly developer sales figures, Credo’s Mr Ong said: “Developers’ private home sales picked up from February, with over 2,000 units (excluding executive condos) sold each month in February, March and April. While developer sales have been good, the authorities probably want to send out the message: “We’re releasing land to keep the supply going too.”

[reporter2]

http://www.straitstimes.com/Money/St...ry_799382.html

Five new sites for homes released

2 city fringe plots likely to draw strong interest if triggered for tender

Published on May 16, 2012

By Esther Teo, Property Reporter


FIVE residential sites able to yield about 2,100 homes were released by the Government yesterday, the same day new figures were made public showing that strong demand for new homes continues unabated.

One of the sites at Pheng Geck Avenue is a confirmed list site. The other four - at Tai Thong Crescent, Kim Tian Road, Prince Charles Crescent and Sengkang West Way - are reserve list sites.

Confirmed list sites go on sale regardless of interest, while those on the reserve list are put up for tender only if developers make an acceptable initial offer.

Experts note the latest release of sites comes off the back of strong new home sales, with a whopping 9,000 private homes sold in the first four months of the year.

April was the strongest month of sales in nearly three years with 2,487 new private homes sold.

The experts are divided on which sites might receive the most interest, but some say that centrally located sites are increasingly getting developers' attention as the price gap between mass market and higher-end homes narrows.

Mr Nicholas Mak, head of research at SLP International Property Consultancy, said the Kim Tian Road and Prince Charles Crescent site near Redhill MRT station are likely to be the most attractive. They are among the largest of the five sites, able to boast 490 and 590 homes respectively.

He expects seven to 12 bidders with top bids forecast to come in at $580 to $650 per sq ft (psf) per plot ratio (ppr) if the site is triggered for sale, which translates to about $310 million.

R'ST Research director Ong Kah Seng agreed that the Kim Tian Road site is likely to be triggered soon due to its central location. He expects bids to come in at between $750 and $800 psf ppr with the project priced at $1,500 to $1,700 psf when launched.

The city fringe region is an attractive segment as it offers a comfortable compromise. It is more affordable than city centre homes yet more tried and tested in terms of investment and leasing demand when compared with suburban homes, he added.

'There has also been increasing awareness of 'underpricing' for centrally located homes in comparison to suburban condos and so developers who have bigger budgets to develop homes in the city fringe areas might consider such options to mitigate risks,' Mr Ong said.

Tai Thong Crescent was also flagged by some experts as likely to attract keen interest as the first floor of the project can be used for commercial purposes.

Credo Real Estate executive director Ong Teck Hui noted that there has been good demand for mixed-use sites, with several of such sites sold in collective sale deals recently. He expects 10 to 15 bids with a top bid of $680 to $780 psf ppr if the site is triggered for tender.

Owing to the ample supply of homes in the north-east of Singapore, however, the Sengkang West Way site is the least likely to be triggered, experts say.

A Knight Frank report said it is 'less desirable due to the distance from any MRT or LRT station and has limited amenities'.

The only confirmed list site, on Pheng Geck Avenue near Potong Pasir MRT station, was launched for sale yesterday.

Experts expect 'strong interest' due to its small size and good location.

Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, said bids could range from $105 million to $115 million, or $550 to $650 psf ppr, with up to 15 bidders taking part.

[email protected]

[hyenergix]

http://www.straitstimes.com/Money/St...ry_799382.html

Five new sites for homes released

2 city fringe plots likely to draw strong interest if triggered for tender

Published on May 16, 2012

By Esther Teo, Property Reporter


FIVE residential sites able to yield about 2,100 homes were released by the Government yesterday, the same day new figures were made public showing that strong demand for new homes continues unabated.

One of the sites at Pheng Geck Avenue is a confirmed list site. The other four - at Tai Thong Crescent, Kim Tian Road, Prince Charles Crescent and Sengkang West Way - are reserve list sites.

Confirmed list sites go on sale regardless of interest, while those on the reserve list are put up for tender only if developers make an acceptable initial offer.

Experts note the latest release of sites comes off the back of strong new home sales, with a whopping 9,000 private homes sold in the first four months of the year.

April was the strongest month of sales in nearly three years with 2,487 new private homes sold.

The experts are divided on which sites might receive the most interest, but some say that centrally located sites are increasingly getting developers' attention as the price gap between mass market and higher-end homes narrows.

Mr Nicholas Mak, head of research at SLP International Property Consultancy, said the Kim Tian Road and Prince Charles Crescent site near Redhill MRT station are likely to be the most attractive. They are among the largest of the five sites, able to boast 490 and 590 homes respectively.

He expects seven to 12 bidders with top bids forecast to come in at $580 to $650 per sq ft (psf) per plot ratio (ppr) if the site is triggered for sale, which translates to about $310 million.

R'ST Research director Ong Kah Seng agreed that the Kim Tian Road site is likely to be triggered soon due to its central location. He expects bids to come in at between $750 and $800 psf ppr with the project priced at $1,500 to $1,700 psf when launched.

The city fringe region is an attractive segment as it offers a comfortable compromise. It is more affordable than city centre homes yet more tried and tested in terms of investment and leasing demand when compared with suburban homes, he added.

'There has also been increasing awareness of 'underpricing' for centrally located homes in comparison to suburban condos and so developers who have bigger budgets to develop homes in the city fringe areas might consider such options to mitigate risks,' Mr Ong said.

Tai Thong Crescent was also flagged by some experts as likely to attract keen interest as the first floor of the project can be used for commercial purposes.

Credo Real Estate executive director Ong Teck Hui noted that there has been good demand for mixed-use sites, with several of such sites sold in collective sale deals recently. He expects 10 to 15 bids with a top bid of $680 to $780 psf ppr if the site is triggered for tender.

Owing to the ample supply of homes in the north-east of Singapore, however, the Sengkang West Way site is the least likely to be triggered, experts say.

A Knight Frank report said it is 'less desirable due to the distance from any MRT or LRT station and has limited amenities'.

The only confirmed list site, on Pheng Geck Avenue near Potong Pasir MRT station, was launched for sale yesterday.

Experts expect 'strong interest' due to its small size and good location.

Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, said bids could range from $105 million to $115 million, or $550 to $650 psf ppr, with up to 15 bidders taking part.

[email protected]

Take up rate seems to b slower, except for MM style apartments n condos. China is really slowing down. I suppose e optimism is lesser.