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Thread: Bullish bid tops 11-way tussle for Upper Serangoon site

  1. #1
    Junior

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    Default Bullish bid tops 11-way tussle for Upper Serangoon site

    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.


  2. #2
    Junior

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    Very optimistic bid.

    Potong pasir only 775 while this is 849 with half the commercial space.

  3. #3
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    Quote Originally Posted by Pro888 View Post
    Very optimistic bid.

    Potong pasir only 775 while this is 849 with half the commercial space.
    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!!

  4. #4
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    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.

  5. #5
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    Quote Originally Posted by henryhk View Post
    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!!
    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.

  6. #6
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    [url]https://www.facebook.com/sqftsg/photos/a.406058532779857.108964.369278666457844/831875070198199/?type=1&theater[/url]

  7. #7
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    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.
    "[I]Never argue with an idiot, or he will drag you down to his level and beat you with experience[/I]."

  8. #8
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    Quote Originally Posted by Arcachon View Post
    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.
    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.

  9. #9
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    Quote Originally Posted by alamak View Post
    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.

    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.
    "[I]Never argue with an idiot, or he will drag you down to his level and beat you with experience[/I]."

  10. #10
    reporter

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    Default Top bid for GLS site with new building rules beats expectations

    [url]http://www.businesstimes.com.sg/real-estate/top-bid-for-gls-site-with-new-building-rules-beats-expectations[/url]

    [B][SIZE=5]Top bid for GLS site with new building rules beats expectations[/SIZE][/B]

    [B]Offer for Serangoon plot of S$276.8m is 15% higher than the next highest bid[/B]

    By Lee Meixian

    [email][email protected][/email]@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.

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