Faber walk site sold for 687psf

[phantom_opera]

World Class Land grabs top bid for Faber Walk site at $156.7m

After intense competition from rivals.

According to Colliers International, the outlook towards the residential market continues to be robust with 18 bids received for the private non-landed residential site located at Faber Walk. The top bid at $156.7 million by World Class Land Pte Ltd, a unit of Aspial Corporation Ltd, reflects $687 per sq ft per plot ratio, a mere 1.1% and 1.9% above the second and third highest bidders, respectively.

- See more at: http://sbr.com.sg/commercial-propert....O8k4gQKL.dpuf

[hyenergix]

Not much land for condo near JLD. The fact that developers fought so intensely is good news to the property owners around there. The price and number of bids surprised me though. At breakeven close to $1200 psf, selling price could average $1600 psf. Given that J Gateway is only announcing its price sometime this/next week, it is unlikely to price its 1-bedder units at $1600 psf. I expect higher because of price support from Trilinq and this Faber Walk plot. Good news to those who already own a property in this area, but bad for those getting in. The announcement of the price of J Gateway couldn't have been more well-timed after opening of JEM and closing of this tender.

[phantom_opera]

near peak psf

I maintain cycle peak at 1800psf

[smartboy2]

world class price.

[mermaid]

world class price.

all of a sudden, u will realise that existing projects launched in this yr suddenly seems so dirt cheap!

even trilinq becomes very reasonably priced!

[reporter2]

http://www.straitstimes.com/archive/...-site-20130619

Fierce bidding for Faber Walk site

Tender closes with top bid of $157m after 18 bidders vie for residential site

Published on Jun 19, 2013

By Rachel Scully


A RESIDENTIAL site at Faber Walk received an overwhelming response from 18 bidders at the close of a tender yesterday with a top bid of $156.7 million.

In what some analysts said was the most fiercely contested tender of a residential site under the Government Land Sale (GLS) programme so far this year, developer World Class Land put up the highest bid for the site which translates into $687.42 per sq ft per plot ratio (psf ppr).

The top five bids (see table) for the 99-year leasehold site, which has a five-storey height limit and can yield 210 homes, were 24 per cent to 60 per cent higher than what property analysts had predicted.

After the tender was launched on April 15, property analysts had expected between five and seven bids ranging from $430 psf ppr to $500 psf ppr.

National director of research and consultancy at Jones Lang LaSalle Ong Teck Hui said: "With 18 bidders, this is the most hotly contested GLS residential site since the Jurong Kechil parcel attracted 23 contestants in November last year."

CBRE Research associate director Desmond Sim said: "The race for land continues... The hunger of these developers is illustrated by the narrow margins especially from the top three bids."

The bid from World Class Land - a subsidiary of locally-listed Aspial Corporation - was just $1.67 million more than the next highest bid of $155 million by Keng Hoe Development.

The lowest bid was from Vantage Properties at $110.8 million or $486.10 psf ppr.

The site area is about 162,808 sq ft and can yield a maximum gross floor area of 227,932 sq ft.

CBRE's Mr Sim expects a break-even cost of about $1,100 psf to $1,200 psf, which translates into a possible launch price from $1,350 psf onwards, given its proximity to Clementi and the upcoming Jurong Gateway.

Jones Lang LaSalle's Mr Ong said: "The keen participation and bidding for the site is due to its fairly exclusive location, set within a mature landed housing estate with frontage to a park connector and Sungei Ulu Pandan and yet accessible from the Ayer Rajah Expressway."

Executive director of research and consultancy at SLP International Nicholas Mak said the strong demand was expected, given the limited supply of vacant land parcels available for development in the future.

Despite the attraction of the site's location, Mr Mak said one drawback is that it is about 1.5km away from Clementi MRT station.

Aspial said in a statement yesterday that it will make further announcements after the land parcel is officially awarded.

[email protected]

[reporter2]

http://www.businesstimes.com.sg/arch...-bids-20130619

Published June 19, 2013

Residential site on Faber Walk draws 18 bids

Narrow 1.1-1.8% gaps between top three tender prices

By Mindy Tan


IN the most hotly contested government land sales since November last year, a 99-year leasehold residential site at Faber Walk drew 18 bids at the close of its tender yesterday.

Aspial Corp's World Class Land put in the top bid of $156.7 million, or $687.42 per square foot per plot ratio (psf ppr) for the site, which measures about 162,808 sq ft.

This was followed closely by Keng Hoe Development's bid of $155.0 million, or $680.01 psf ppr, and Greatview Development - controlled by Yu Zhisong - which put in a bid of $153.8 million, or $674.71 psf ppr.

That the price difference between the top bid and second and third highest bidders is a mere 1.1 per cent and 1.8 per cent, respectively, reflects the confidence and appetite of developers, say consultants.

Another factor is its fairly exclusive location, said Ong Teck Hui, national director, research and consultancy, at Jones Lang LaSalle. In addition, the five-storey height limit respects the urban design of the area so that the development will blend in with the surroundings.

"These attributes will be strong selling points for the project and should attract ready buyers," said Mr Ong.

"The close bidding among the top bidders shows roughly similar assessments on demand and pricing of the units which are likely to be above $1,200 psf on average," he added.

The fact that there is a limited supply of vacant land parcels within the area for development in the future could be another reason for the slim price gap between the top and second-highest bid, said SLP International's head of research, Nicholas Mak.

It is the smallest gap in a residential GLS tender since the tender for a condominium site at Pheng Geck Avenue which closed last June. In the latter's case, the price gap between the first and second bids was 0.9 per cent.

"The developer of this condominium site may be projecting a 10-20 per cent price increase in this location and plans to launch this project at $1,300 to $1,400 psf," said Mr Mak.

CBRE Research's associate director, Desmond Sim, noted that the increased working population from Jurong Gateway and International Business Park could lead to future leasing demand.

He expects a breakeven price of about $1,100 to $1,200 psf, which translates to a possible launch price from $1,350 psf.

In addition to working professionals, a new project on the subject site can draw on a potential upgrader pool of about 11,600 households who are currently staying in five-room and executive HDB flats in Clementi and Jurong East, according to the Population Census 2010. This was pointed out by Chia Siew Chuin, director of research and advisory at Colliers International.

"The estimated breakeven cost could range from $1,050 to $1,150 psf. When units at this project are ready for launch, the selling price could start from $1,300 psf," said Ms Chia.

The land tender also drew bids from several big players including a joint bid by Hoi Hup Realty, Sunway Developments and Hoi Hup JV Development ($610.92 psf ppr); Far East Organisation and Sekisui House ($547.42 psf ppr); and FCL Place ($580.11 psf ppr).

Vantage Properties put in the lowest bid, at $110.8 million, or $486.1 psf ppr.