We have closed the tender for the residential with 1st storey commercial site at Upper Serangoon Road today. The site at Upper Serangoon Road was launched for public tender on 25 September 2014 and was offered for sale on a 99-year lease.
Junior
We have closed the tender for the residential with 1st storey commercial site at Upper Serangoon Road today. The site at Upper Serangoon Road was launched for public tender on 25 September 2014 and was offered for sale on a 99-year lease.
Junior
Very optimistic bid.
Potong pasir only 775 while this is 849 with half the commercial space.
Newbie
Don't understand why the foreign developers under Lee Kah Shing is so bullish!! Either he has too much money or he has no more investment ideas or he thinks our market still cheap.... or he is too confident of the OCR, .... because of all these bullish bids, garment will not lift up the measures!!Originally Posted by Pro888
Senior
ASSET Legend, believed to be a unit of Li Ka-shing's Cheung Kong Holdings, has put in the highest tender price for the first government land sales site that comes with new buildability and productivity regulations.
According to the Urban Redevelopment Authority's tender results on Thursday, it offered S$276.8 million, or S$848.84 per square foot per plot ratio (psf ppr), for the 99-year leasehold mixed-use site at Upper Serangoon Road.
This is higher than consultants' expectations of S$670-750 psf ppr. It is considered "aggressive" by analysts, who had expected more caution due to the new prefabrication requirements, which is likely to lead to marginally higher construction costs.
The top bid is 15 per cent more than the next highest bid of S$240 million (S$736.06 psf ppr), put in by Sustained Land's SL Capital Ventures Pte Ltd.
The winning margin is "rather surprising, especially in light of the current market sentiment", said JLL head of South-east Asia research Chua Yang Liang. "In our opinion, the second bid price is more in line with current market expectations."
A consortium comprising City Developments unit Verwood Holdings, Hong Leong Group's Intrepid Investments, and TID Residential put in the third-highest bid of S$234.6 million (S$719.50 psf ppr).
The tender attracted 11 bids in all, within consultants' expectations. The lowest bid of S$172.7 million (S$529.66 psf ppr) came from Koh Brothers unit KBD Ventures.
Consultants say that the top bid translates to a breakeven price of at least S$1,300 for the residential units. The site is primarily residential, with its first storey allocated for commercial activity. Conveniently located near Kovan MRT station, it is expected to yield about 340 housing units.
"As (the new requirements are) a new move, the economies of scale have yet to be tested and the breakeven price for this project could be higher as it is the first adopter," said Eugene Lim, the key executive officer of ERA Realty Network.
"Asset Legend could be bullish about the site's prospects due to its proximity to the Kovan MRT station and its main road frontage, which works well for the first-floor commercial units."
R'ST Research director Ong Kah Seng said that optimistic bids are often common with foreign developers, who might be willing to assume a lower profit margin because they see the benefits of developing a choice site which can possibly yield an end-product with greater investment potential.
Earlier this month, the Building and Construction Authority announced that from November, projects built on government land sales sites would have to meet higher building design and constructability standards, as well as a certain level of prefabrication.
The project's tender closing date was thus extended from Nov 13 to Nov 27 to give prospective tenderers more time to factor in the new requirements into their bids.
Senior
He saw something others don't, waiting for Durian to drop is very hard in Singapore everything well calibrated.
Any Bank willing to loan money to me I will buy.
Senior
Senior
Retail space on the ground floor will be sold at approx $4000-5000psf and this will help lower down the breakeven of their residential component.
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."
Newbie
Li Kah Shing's Cheung Kong Holdings must have been sleeping not even in the bidding list for the P P MRT mixed development. That's why they die die must get this one. But this one is barely 1/3 the size of the potong pasir and somecmore not integrate with the MRT entry/exit point. Not much advantage for retailers. just a typical mixed develoment not comnparable to CDL Venue Residenes/Shoppes.
The P P MRT one will be hot when it is launched.
Senior
Retail shops located at near busy junction will always command a premium, especially one that has got parking facilities. Looking at the location and surrounding residential development, I would expect to healthy human traffic as people living in that area will have to walk to and back from MRT station.
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."
reporter
http://www.businesstimes.com.sg/real...s-expectations
Top bid for GLS site with new building rules beats expectations
Offer for Serangoon plot of S$276.8m is 15% higher than the next highest bid
By Lee Meixian
[email protected]@LeeMeixianBT
28 Nov
ASSET Legend, believed to be a unit of Li Ka-shing's Cheung Kong Holdings, has put in the highest tender price for the first government land sales site that comes with new buildability and productivity regulations.
According to the Urban Redevelopment Authority's tender results on Thursday, it offered S$276.8 million, or S$848.84 per square foot per plot ratio (psf ppr), for the 99-year leasehold mixed-use site at Upper Serangoon Road.
This is higher than consultants' expectations of S$670-750 psf ppr. It is considered "aggressive" by analysts, who had expected more caution due to the new prefabrication requirements, which is likely to lead to marginally higher construction costs.
The top bid is 15 per cent more than the next highest bid of S$240 million (S$736.06 psf ppr), put in by Sustained Land's SL Capital Ventures Pte Ltd.
The winning margin is "rather surprising, especially in light of the current market sentiment", said JLL head of South-east Asia research Chua Yang Liang. "In our opinion, the second bid price is more in line with current market expectations."
A consortium comprising City Developments unit Verwood Holdings, Hong Leong Group's Intrepid Investments, and TID Residential put in the third-highest bid of S$234.6 million (S$719.50 psf ppr).
The tender attracted 11 bids in all, within consultants' expectations. The lowest bid of S$172.7 million (S$529.66 psf ppr) came from Koh Brothers unit KBD Ventures.
Consultants say that the top bid translates to a breakeven price of at least S$1,300 for the residential units. The site is primarily residential, with its first storey allocated for commercial activity. Conveniently located near Kovan MRT station, it is expected to yield about 340 housing units.
"As (the new requirements are) a new move, the economies of scale have yet to be tested and the breakeven price for this project could be higher as it is the first adopter," said Eugene Lim, the key executive officer of ERA Realty Network.
"Asset Legend could be bullish about the site's prospects due to its proximity to the Kovan MRT station and its main road frontage, which works well for the first-floor commercial units."
R'ST Research director Ong Kah Seng said that optimistic bids are often common with foreign developers, who might be willing to assume a lower profit margin because they see the benefits of developing a choice site which can possibly yield an end-product with greater investment potential.
Earlier this month, the Building and Construction Authority announced that from November, projects built on government land sales sites would have to meet higher building design and constructability standards, as well as a certain level of prefabrication.
The project's tender closing date was thus extended from Nov 13 to Nov 27 to give prospective tenderers more time to factor in the new requirements into their bids.
reporter
http://www.straitstimes.com/archive/...-site-20141128
Bullish bid tops 11-way tussle for Upper Serangoon site
Published on Nov 28, 2014 1:08 AM
By Rennie Whang
AN AGGRESSIVE bid from a Hong Kong heavyweight emerged tops in an 11-way tussle for a 99-year leasehold site in Upper Serangoon set to yield 340 homes as well as commercial space.
The bid by Asset Legend, which is controlled by billionaire Li Ka Shing's Cheung Kong Holdings, was for about $276.8 million, or $848.8 per sq ft per plot ratio (psf ppr) - 15.3 per cent higher than the next highest offer of $736.1 psf ppr by Sustained Land's SL Capital Ventures.
A tie-up between City Developments and Hong Leong subsidiaries - Verwood Holdings, Intrepid Investments and TID Residential - came in third at $719.5 psf ppr. The lowest bid of $529.7 psf ppr came from Koh Brothers' KBD Ventures.
The roughly 10,000 sq m site can yield about 340 homes, with commercial units on the first storey. Kovan City, Heartland Mall and Kovan MRT station are nearby.
Market watchers found the top bid bullish, given a nearby commercial and residential site at Meyappa Chettiar Road had in August sold for $775.2 psf ppr. The gap between top and second for that site "was only some 2.4 per cent", said JLL head of South-east Asia research Chua Yang Liang. "(The gap this time round) is rather surprising especially in the light of current market sentiment," said Dr Chua.
Still, observers hailed the strong turnout as an affirmation of confidence in Singapore's long-term growth.
"Land bids so far have been quite aggressive, which is a good sign for the market. There's still a lot of interest in good sites near MRT stations," said Rodyk & Davidson partner Lee Liat Yeang.
The top bidder could also have factored in a premium for the site with the view that the Government could start to lift cooling measures affecting private residential properties in the second half of next year, said R'ST Research director Ong Kah Seng.
Residential prices for the site could pan out to $1,300 to $1,400 psf, considering nearby Kovan Regency has achieved average prices of $1,200 to $1,300 psf in 2012 and last year, said Dr Chua.
The site will be the first Government Land Sales (GLS) site to come under new requirements to develop using prefabricated pre-finished volumetric construction (PPVC). This involves assembling whole rooms or apartment units that are manufactured off-site, and is meant to raise productivity in the construction sector.
"As this is a new move, the economies of scale have yet to be tested and the breakeven price for this project could be higher as it is the first adopter of this new requirement," said ERA key executive officer Eugene Lim.
While Asset Legend has featured in few GLS tenders to date, Cheung Kong Holdings' Best Desire Investments placed bids for the Meyappa Chettiar and Lorong Puntong sites in the second half of this year.
Cheung Kong's projects here include The Vision in the West Coast area, Thomson Grand in Upper Thomson, Costa Del Sol in Bayshore and Cairnhill Crest. It has also developed Marina Bay Suites and Marina Bay Residences jointly with Hongkong Land and Keppel Land.
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