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Thread: CapitaLand's $366m bid for Coronation Road site tops 11 others

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    Default CapitaLand's $366m bid for Coronation Road site tops 11 others

    PUBLISHED JUNE 21, 2013

    CapitaLand's $366m bid for Coronation Road site tops 11 others

    Its offer of $908.17 psf is 17% higher than closest rival's

    BYMINDY TAN

    CAPITALAND'S Athens Residential Development was found to have bid higher than 11 others at the close of tender yesterday for the 99-year leasehold site at Coronation Road.

    The top bid was $366 million, or $908.17 per square foot of land, compared to the second highest bid put up by Far East Organization unit Astor Properties ($313.3 million, or $777.49 psf of land).

    "We plan to develop a prestigious landed development comprising semi-detached houses and bungalows on this site. The development will be ready for launch around Q2 of 2014," said a CapitaLand Singapore spokesperson.
    That the top bid was 17 per cent higher than the second illustrates CapitaLand's confidence in this market, said Joseph Tan, executive director, residential, CBRE.

    "If developed into semi-detached houses, CBRE expects prices to start from $6 million," he added.

    That the site managed to garner 12 bids shows that homebuyer's demand for landed housing is still strong, said Nicholas Mak, executive director, research and consultancy, at SLP International.

    Christine Li, head of research and consultancy at Orange Tee agreed: "Developers are bullish on landed properties due to its limited pipeline supply unlike condominiums and apartments.

    "The other reason could also be that prices of landed properties have outperformed non-landed properties since Q2 2009; prices of landed properties are now 87 per cent above the trough in 2009 as of Q1 2013. In comparison, prices of non-landed homes are only 53 per cent above the trough in 2009."

    Assuming the developer were to build only semi-detached houses on the parcel, Ms Li said she expects the breakeven cost for each unit to be about $3.5 million.

    SLP International's Mr Mak said he expects homes on the 99-year leasehold landed housing project to be launched at between $1,600 psf and $2,000 psf.
    "The site is located near a Good Class Bungalow (GCB) area. Recent transacted prices of landed houses in this location ranged from $1,280 psf to $1,830 psf of land. But most of the landed houses in this area are on freehold or 999-year leasehold land," he said.

    The landed housing plot, which measures about 403,007 sq ft, was a former Chinese cemetery acquired by the state and cleared for development in the late 1990s. Part of the attraction of the site is that it is located near Nanyang Primary School, Raffles Girls' Primary School, Nanyang Girls' High School, National Junior College, and Hwa Chong Institution.

    It is also within walking distance to Farrer Road MRT and the future Tan Kah Kee MRT station.

    According to Ong Kah Seng, director at R'ST Research, being located near good schools, and the limited new supply of landed housing plots could translate into fairly high resale interest in the longer term.

    Sale of landed housing development sites are quite rare. The previous GLS site for landed housing which was put up for sale was in December 2011 for a site at Chestnut Avenue, which drew $70.8 million, or $510 psf of land.

    Other bidders for the site include Chip Eng Seng's CEL EC Development which put up a bid of $298 million or $739.44 psf of land; a combined bid of $282.3 million ($700.48 psf of land) was also put up by City Developments Limited's Verwood Holdings, Hong Leong Holding's Intrepid Investments, and Hong Realty's Garden Estates; Allgreen Properties put up a bid of $229.0 million, or $568.18 psf of land.

    The lowest bid was put up by Wing Tai Holdings unit, Wingzest Investment, at $163.1 million, or $404.73 psf of land.

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    CBRE: "If developed into semi-detached houses, CBRE expects prices to start from $6 million," he added.

    Orange Tee: Assuming the developer were to build only semi-detached houses on the parcel, Ms Li said she expects the breakeven cost for each unit to be about $3.5 million.

    SLP: SLP International's Mr Mak said he expects homes on the 99-year leasehold landed housing project to be launched at between $1,600 psf and $2,000 psf.
    "The site is located near a Good Class Bungalow (GCB) area. Recent transacted prices of landed houses in this location ranged from $1,280 psf to $1,830 psf of land. But most of the landed houses in this area are on freehold or 999-year leasehold land," he said.

    first 2 analysts don't seem to know what they are talking about.

    SLP guy's comments make more sense.

    CBRE guy doesn't know that minimum land size for semi-d is 2153 sq ft?
    Orange Tee lady, if breakeven is 3.5m for 2153 sq ft, psf is 1636psf.
    SLP's 1600psf minimum sale price target is the breakeven price of orange tee.

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    wing tai boss really bearish on landed. want to sell his GCB at record price and want to buy land at ridiculously lowball price.

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    Anything Capitaland touch, just avoid can liao.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    ok leh. eventually they will cut price. kekeke.

    Quote Originally Posted by Ringo33
    Anything Capitaland touch, just avoid can liao.

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    Is it me or does anybody share the view that Capland has to do national service to prop up or set record prices?

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    Cemetery land, no way in ;()$&@&@ I will live in a house in that ...

    Btw, you are one day late on this news already

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    Default Landed housing plot gets top bid of $366m

    http://www.straitstimes.com/premium/...-366m-20130621

    Landed housing plot gets top bid of $366m

    District 10 site in Coronation Rd could yield 140 landed homes

    Published on Jun 21, 2013

    By Cheryl Ong


    A RARE find - a large landed housing plot in upscale Coronation Road - has attracted a top bid of $366 million in a 12-way tussle between developers.

    CapitaLand's Athens Residential Development put in the highest bid - $908 per sq ft (psf) per plot ratio (ppr) - for the 37,441 sq m site, which could yield 140 landed homes. The next highest bid came from Far East Organization - 17 per cent lower at $313.3 million or $777 psf ppr.

    The tender closed yesterday.

    Experts expected the bids to range from $880 to $990 psf ppr, pegging the number of bidders at five to 17. The 99-year leasehold site was released in March as part of the Government Land Sales (GLS) programme.

    Other bidders included Chip Eng Seng, City Developments and Wing Tai Holdings. The lowest bid came in at $163.1 million, or nearly $405 psf ppr.

    CBRE's executive director of residential services Joseph Tan said the main draw was probably the site's prime location - it sits in District 10, next to a Good Class Bungalow zone.

    Experts also said landed housing development sites offered for sale draw a strong response from developers as they are quite rare.

    "The last GLS sale for such developments was in December 2011 - a site in Chestnut Avenue went for $70.8 million or $510 psf," said SLP International's executive director of research and consultancy Nicholas Mak.

    R'ST Research director Ong Kah Seng said another attraction was the site's proximity to popular schools such as Nanyang Primary and Hwa Chong Institution.

    Moreover, developers are bullish over demand for landed homes as their prices have outstripped those of non-landed properties.

    "Prices of landed properties, as of the first quarter of this year, were 87 per cent above the trough in 2009. In contrast, prices of non-landed homes were only 53 per cent above the trough in 2009," said OrangeTee head of research and consultancy Christine Li.

    Mr Mak said recent transactions for freehold and 999-year leasehold landed homes in the area saw prices of $1,280 to $1,830 psf. But he believes that if CapitaLand is awarded the 99-year leasehold site, it will launch its project at $1,600 psf to $2,000 psf.

    The Urban Redevelopment Authority will announce the winner of the tender later, though the top bidder generally is well placed.

    Plans for the site include building a mix of semi-detached houses and bungalows that will be ready for launch in the second quarter of next year, a CapitaLand spokesman said yesterday.

    [email protected]

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    Who is this Singhaiyi developer?
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    u say me ah?

    yesterday i very busy lah. the news only came out in newspapers today lah. i already cut and paste as soon as i saw it.


    Quote Originally Posted by amk
    Cemetery land, no way in ;()$&@&@ I will live in a house in that ...

    Btw, you are one day late on this news already

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    singhaiyi used to be singxpress land (the one who created a big hoo-ha with that giant tampines EC penthouse). renamed singhaiyi after they got george bush's brother to invest in them.

    Quote Originally Posted by Ringo33
    Who is this Singhaiyi developer?

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    This is k k fong, if u know this name, u should know enough

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    its not k k fong. that's XPRESS HOLDINGS singapore.

    singxpress is by hong kong's XPRESS GROUP's, chan heng fai.

    http://www.valuebuddies.com/thread-8....html#pid12490



    Quote Originally Posted by amk
    This is k k fong, if u know this name, u should know enough

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    Quote Originally Posted by amk
    Cemetery land, no way in ;()$&@&@ I will live in a house in that ...

    Btw, you are one day late on this news already
    You are right!
    Map 1958




    Yee ha! Did I tickle your funny bone?


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    Quote Originally Posted by bargain hunter
    its not k k fong. that's XPRESS HOLDINGS singapore.

    singxpress is by hong kong's XPRESS GROUP's, chan heng fai.

    http://www.valuebuddies.com/thread-8....html#pid12490
    Oops u r right, I was wrong
    Really thought was that guy.. Thanks for correcting.

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    Let's guess which famous (expensive) international designer is going to be hired for this project.

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