Martin Place residential site fetched $1,239 psf ppr

[reporter2]

http://www.theedgeproperty.com.sg/co...d-1239-psf-ppr

Martin Place residential site fetched $1,239 psf ppr

By Feily Sofian / The Edge Property | June 28, 2016 6:37 PM MYT


The residential site on Martin Place attracted a total of 13 bids in a tender that closed today. A GuocoLand subsidiary, First Bedok Land Pte Ltd, put in the top bid of $1,239 psf ppr. The 99-year leasehold site can yield around 450 housing units.

GuocoLand's bid was just 1.2% above the second highest bid by a consortium involving City Developments and Hong Leong Holdings. Other tenderers include MCL Land, Nanshan Group, SingLand and UOL Group joint venture and Allgreen Properties.

Based on the top bid of $1,239 psf ppr, the breakeven price for the development is estimated at $1,750 psf. Nearby the site, units at Rivergate, Starlight Suites and Martin Place Residences were transacted at an average price of $1,949, $2,094 and $1,985 psf respectively over the past six months. All three projects sit on freehold sites.

Desmond Sim, CBRE's head of research for Singapore and Southeast Asia, is not surprised by the top bid, which was a record psf ppr price fetched for a pure residential on the government land sales programme. "The number of prime, pure residential sites available on the market is very limited, and developers are still hungry for such sites. The developers who participated in the tender were attracted by the affordable quantum. They were planning forward, encouraged by the recent success of Cairnhill Nine," Sim explains.

[reporter2]

http://www.straitstimes.com/business...racts-595m-bid

River Valley GLS plot attracts $595m bid

Jun 29, 2016

Offer price by GuocoLand possibly highest for govt residential site outside of Sentosa

Rennie Whang


A plum River Valley site is set to sell for what is believed to be a record price for a Government Land Sales (GLS) residential plot outside of Sentosa Cove.

The Martin Place site in District 9 drew 13 bidders, 10 of them local developers - a clear vote of confidence for the Singapore market.

GuocoLand, which is controlled by Malaysian Quek Leng Chan, submitted the top bid of $595.1 million or $1,239 per sq ft per plot ratio (psf ppr). This was just above the next bid of $588 million or $1,224 psf ppr by companies also under the Kwek family - City Developments unit Verwood Holdings, Hong Leong Holdings unit Intrepid Investments, TID Residential, and Hong Realty unit Garden Estates.

The offer price of $1,239 psf ppr would be a record for a pure GLS residential site and exceeds the $1,163 psf ppr cost for the Highline Residences site in April 2013 and the $1,157 psf ppr for the Sophia Hills plot in September that year. The Sophia Hills site was the last time a District 9 site was put up for sale.

In terms of absolute quantum, the $595.1 million bid is still lower than the $624.2 million a Siglap Road condo site went for in January. But the Siglap site is larger and can support 800 to 900 units. The Martin Place site has a cap of 450 homes, which works out to average unit sizes of about 100 sq m or 1,076 sq ft.

"Many developers interested in this site were aware of the potential fierce competition... In order to have a fair chance... the bid had to be bullish," said SLP International executive director Nicholas Mak.

GuocoLand is likely looking to set benchmark prices for 99-year leasehold homes in the area, said Savills Singapore research head Alan Cheong. These could be about $2,300 psf, exceeding even prices of freehold homes in the area.

"The site is large and we will be creating a beautiful development," said GuocoLand Singapore managing director Cheng Hsing Yao.

It is close to Orchard Road and the Singapore River, and just a short walk to the future Great World MRT station, he added.

The upbeat sentiment displayed by developers at the tender could be due to the recent increase in sales, noted JLL national research director Ong Teck Hui.

"For example, within the River Valley planning area where the site is, monthly transaction volumes of non-landed units averaged only 15 units last year but rose to 86 units in May," he said.

The bidders were also probably encouraged by recent strong sales at Cairnhill Nine, said Mr Desmond Sim, CBRE research head for Singapore and South-east Asia. They were expecting to launch when the market recovers, possibly due to a tweak in cooling measures.

Response to the tender "is a good sign for the prime residential market... The strong representation from Singapore developers shows that market confidence may be coming back", Mr Sim added.

[reporter2]

http://www.businesstimes.com.sg/real...ace-condo-site

Quek Leng Chan pips S'pore cousin to top bids at URA tender for Martin Place condo site

GuocoLand's bid of S$1,239 psf ppr is highest for a pure housing GLS site since 2009

By Kalpana Rashiwala

[email protected]

@KalpanaBT

Jun 29, 2016


MALAYSIAN tycoon Quek Leng Chan has pipped his Singaporean cousin Kwek Leng Beng to emerge as the top bidder for a rare District 9 private residential site offered at a state tender.

A unit of Mr Quek's Singapore-listed GuocoLand bid S$595.1 million, which works out to S$1,239 per square foot per plot ratio (psf ppr) for the plot at the corner of Martin Place and River Valley Close.

This is 1.2 per cent higher than the second highest bid of S$588 million or S$1,224.22 psf ppr from a four-way consortium involving Hong Leong Holdings' Intrepid Investments, City Developments' unit Verwood Holdings, TID Residential and Garden Estates. All four are part of the Singapore Hong Leong Group helmed by Mr Kwek.

Both bids exceeded the top end of market expectations; property consultants whom The Business Times had polled when the site was launched in late April had forecast the highest bid would be in the S$930-S$1,200 psf ppr range.

The tender drew 13 bids, reflecting the upbeat mood among developers amid the recent return of buying interest. GuocoLand's bid is the highest for a pure residential site sold at a state tender since 2009.

GuocoLand Singapore managing director Cheng Hsing Yao said: "The site is in a coveted residential location that is also near the F&B cluster along Robertson Quay, and a short walk from the future Great World MRT Station on the Thomson-East Coast Line which will take residents straight to the CBD and Marina Bay.

"And because of the site's substantial land area, the proposed project will feature some of our trademark luxurious living and lush amenities as seen in Goodwood Residence and Leedon Residence."

Other bidders at Tuesday's tender for the Martin Place site conducted by Urban Redevelopment Authority (URA) included MCL Land, Nanshan Group Singapore, and a tie-up between Singapore Land unit Singland Homes and UOL Venture Investments.

Tanglin Land, part of CapitaLand, was in seventh place, with a bid of about S$1,020 psf ppr. Wing Tai's unit Wingzest Investment priced the site at S$976 psf ppr. Far East Organization offered S$920 psf ppr and a United Engineers Developments and Keong Hong tie-up, S$843 psf ppr.

The lowest bid, from IOI Properties unit Multi Wealth (Singapore), was S$402.8 million, translating to S$838.63 psf ppr.

The nearly 1.6-hectare site may be built into 450 units at most - subject to a maximum gross floor area of 480,306.75 sq ft. The maximum unit stipulation - understood to be due to traffic considerations in the locale - means that the average unit size in the project will be 1,067 sq ft. Part of the site has a 20-storey height restriction, while the rest of the plot has a 30-storey height limit. The plot is close to River Valley Primary School.

CBRE Research's head of Singapore and South East Asia, Desmond Sim, said: "The number of bids and the profile of bidders reflect the prominence of this plum site along Martin Place. The developers who participated in the tender ... were planning forward, encouraged by the recent success of Cairnhill Nine.

"The winner will be able to take advantage of launching a product that suits the market, at an opportune time ... because of a tweak in the property cooling measures or when the market recovers."

Based on GuocoLand's bid price, SLP International executive director Nicholas Mak estimated its breakeven cost at S$1,850-S$1,910 psf and its likely launch price above S$2,100 psf on average.

JLL national director Ong Teck Hui estimates GuocoLand's breakeven cost at S$1,800-S$1,900 psf and its average selling price, at above S$2,000 psf. Highlighting how the recent return of private home-buying interest and rising transaction volumes would have contributed to the positive outlook among the bidders at Tuesday's tender closing, Mr Ong said: "Within the River Valley planning area, where the subject site is located, monthly transaction volumes of non-landed private homes averaged only 15 units in 2015 but have climbed to 86 units in May."

Mr Ong also noted that few prime-district residential sites come onto the market through the Government Land Sales (GLS) programme so the Martin Place site presented a rare opportunity to interested developers. He added: "Its central location in proximity to the CBD, Orchard Road and amenities along the Singapore River would be strong selling points in attracting buyers.

"The last prime-district residential site sold under the GLS programme is that of Sophia Hills in September 2013, fetching S$1,157 psf ppr."