Paya Lebar residential site sees tight seven-way tussle

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http://www.straitstimes.com/archive/...ussle-20140115

Paya Lebar residential site sees tight seven-way tussle

'Healthy interest' due to Bartley MRT station, success of 2 nearby projects

Published on Jan 15, 2014

By Cheryl Ong


A TENDER for a residential site in Upper Paya Lebar Road had been expected to attract keen interest from developers - and it lived up to its billing.

The site had drawn seven bids in a closely-fought battle when the tender closed yesterday.

Property analysts said they expected "healthy interest" in the 99-year leasehold site, as it was near major transportation links.

Developers would have been encouraged by the success of two nearby projects, they added.

The top bid from UOL Overseas Investments - a unit of the UOL Group - came in at $392.3 million, or $648.30 per sq ft (psf) per plot ratio (ppr).

This was just 3.2 per cent higher than the next highest bid of $378.3 million, or $625.20 psf ppr, from EL Development.

A consortium comprising Frasers Centrepoint's FCL Topaz, Far East Civil Engineering and Sekisui House came in third with its offer of $344.9 million, or about $570 psf ppr, which was 9.7 per cent lower than EL Development's bid.

Ms Chia Siew Chuin, research head of Colliers International, said the gap between the top two bids and the remaining offers reflects the difference in developers' confidence in the property market, after tougher loan curbs hit affordability of homes.

Consultants had expected the site to garner a winning bid of $470 to $750 psf ppr, with five to 10 bids lodged, when it was put on the market on Nov 18.

CBRE research head Desmond Sim said UOL's offer had beaten the winning bids for nearby sites, where the 702-unit Bartley Residences and 375-unit Bartley Ridge are being developed.

Bartley Residences, next to the site, was sold at $621 psf ppr in March 2011. Across the road, Bartley Ridge was sold for $495 psf ppr in January 2012, Mr Sim said.

"Confidence is buoyed by the success of the previous two sites. Bartley Residences is sold out and Bartley Ridge is close to selling out," he said.

On top of that, land parcels in this upcoming residential enclave are scarce, noted SLP International research head Nicholas Mak.

Consultants said developers would have been drawn to the 216,113.3 sq ft site's location near the Bartley MRT station and popular suburban shopping mall nex.

UOL said it plans to build a 17-storey condo with 700 units if awarded the site.

Consultants said break-even prices could be between $1,050 and $1,100 psf, placing selling prices between $1,300 and $1,400 psf.

But Mr Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle, said he does not expect UOL to raise prices much higher than those for units at Bartley Residences and Bartley Ridge which were sold for $1,270 psf on average.

"It appears that the units at the subject site could be priced around $1,200 psf or less on average, taking into account a slower market."

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http://www.businesstimes.com.sg/arch...-site-20140115

Published January 15, 2014

UOL makes top bid of $648 psf ppr for Bartley site

It sees strong demand from Paya Lebar, Serangoon, Hougang areas

By Kalpana Rashiwala [email protected]


THE first state tender this year for a private housing site may reflect a divergence in views among property developers amid an uncertain market outlook.

UOL's top bid of $648.30 per square foot per plot ratio (psf ppr) for the site near Bartley MRT Station was just 3.7 per cent higher than the second-highest offer of around $625 psf ppr by EL Development. However, the top two bids were quite far apart from the other five.

Noteworthy was the sixth-position bid of $463 psf ppr by a partnership between City Developments Ltd (CDL) and TID. The two had earlier teamed up with Hong Leong Holdings to clinch two nearby sites. Together they had shelled out nearly $621 psf ppr at a tender that closed in March 2011 for the next-door site, which is now being developed into Bartley Residences. In January 2012 - the month after the additional buyer's stamp duty was rolled out - they paid a much lower price of $495 psf ppr for a nearby plot, which they are developing into the Bartley Ridge project.

At yesterday's tender for a site facing Upper Paya Lebar and Bartley roads, the lowest bid was $340.23 psf ppr.

Robert Kuok's Allgreen Properties offered $469 psf ppr and Chip Eng Seng (which is involved in construction and property), nearly $548 psf ppr. A partnership involving Frasers Centrepoint, Far East Organization and Sekisui House bid $570 psf ppr.

Colliers International director Chia Siew Chuin said the tender result "to some extent indicates a difference in developers' assessment of the market going forward, given that the private residential market in 2014 is expected to be more tentative as home buying sentiment turns increasingly cautious".

SLP International executive director Nicholas Mak estimates that UOL's top bid reflects a break-even cost of about $1,050-1,100 psf. "The future project is likely to be launched at $1,240-1,300 psf," he said.

Jones Lang LaSalle national director Ong Teck Hui said Bartley Residences and Bartley Ridge had achieved average prices of around $1,270 psf. They were launched in February 2012 and March 2013 respectively. He reckons that units in the project on the latest site could be priced around $1,200 psf or less on average, taking into account a slower market as a result of the TDSR (total debt servicing ratio) as well as the site's attributes, among other factors.

"The subject site is bounded by Upper Paya Lebar and Bartley roads, which are busy thoroughfares, so units fronting these would have to be priced realistically."

However, the site is near Maris Stella Primary and Secondary schools, one MRT stop from the popular Nex mall and drew seven bids - which is considered a healthy participation rate, agents noted.

Liam Wee Sin, UOL Group president (property), said: "We see strong potential demand coming from the Paya Lebar, Serangoon and Hougang areas which have very little supply stream."

The site can accommodate a 17-storey project with about 700 units, he added.

"Given its city-fringe location and connectivity to the MRT lines, it will also appeal to a wider pool of buyers. The government's plan to free up the Paya Lebar airbase for new homes, offices and industrial buildings is also an exciting growth story for this area," said Mr Liam.

[CondoInterested]

The 2 BR land are sold cheaper and both have only 1 side facing the main noisy road with 1 shorter and the other longer in length.

The new plot has both side facing road and near a 5 way junction and the land still higher price, wow...

Please don't flame me, just my personal opinion.