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Thread: Florence Regency sold to Chinese developer Logan Property at $629 mil

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    Default Bids for Florence Regency come below independent valuation

    Florence Regency up for collective sale at $600 mln.

    Timothy Tay | August 22, 2017


    Florence Regency, a former HUDC estate comprising 336 apartment and maisonette units at Hougang Avenue 2, has been put up for collective sale with a minimum price of $600 million. Including differential premiums, currently estimated at $249 million, the land price is about $799 per sq ft per plot ratio (psf ppr).

    According to marketing agent JLL, the Florence Regency site is zoned ‘Residential’ with a gross plot ratio of 2.8 under the 2014 Master Plan. The 389,236 sq ft site, which has about 71 years remaining on its lease, could potentially yield a total gross floor area of over 1.1 million sq ft or an estimated 1,100 to 1,300 apartment units. The site is located close to Hougang and Kovan MRT stations, Hougang Central Bus Interchange and Hougang Mall.

    This is the development owners’ first attempt in a collective sale, with more than 80% of the owners agreeing and signing the agreement in less than 3 weeks. The owners are expecting offers ranging from $615 million to more than $650 million, says Tan Hong Boon, JLL regional director of capital markets.

    The tender exercise will close on September 27.


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    FLORENCE Regency, a privatised HUDC estate in Hougang, received three bids at the close of its public tender.

    But the collective sales committee was not able to award the tender to the top bidder as the bid price, while above the reserve price of S$600 million, was below valuation, BT understands.

    A valuation report was submitted by independent valuer Colliers International that valued the estate at S$629 million. As a result, the valuation became the new minimum price for Florence Regency, based on the terms of the collective sales agreement (CSA).

    In a letter to owners on Thursday, JLL said it is going back to all interested parties to consider an offer at or above the new minimum price.

    The laws governing collective sales allow for a private treaty to be concluded within 10 weeks from the close of the public tender. The tender for Florence Regency had closed on Wednesday.

    Built in the late 1980s, the 336-unit estate is zoned residential with a gross plot ratio of 2.8 under URA's Master Plan 2014.

    With a balance lease term of some 71 years, the 389,236 square foot site could potentially support a total gross floor area of over 1.1 million sq ft or an estimated 1,100 to 1,300 apartment units.

    The estimated differential premiums for the lease top-up and increased built-up of the site would be about S$288.5 million.

    This would translate to a total land cost of S$842 per square foot per plot ratio (psf ppr) for the developer, which is below the S$860 psf ppr that an Oxley Holdings-led consortium paid for Serangoon Ville, and the S$965 psf ppr that Keppel Land and Wing Tai paid for the government land site along Serangoon North Avenue 1.

    Florence Regency is near Hougang MRT Station, which will become an interchange station when the planned Cross Island Line is completed, and the bus interchange with Hougang Mall.

    It is also within walking distance of Kovan MRT Station along Upper Serangoon Road, where there is a wide range of F&B options.

    The en bloc fever in Singapore has just started with nine sites sold for S$3.7 billion, including one industrial site, leading market watchers to believe that the en bloc upcycle is still at a nascent stage and the property market is in an early stage of recovery.

    http://www.businesstimes.com.sg/real...dent-valuation

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    Bids for Florence Regency come below independent valuation
    THU, SEP 28, 2017 - 7:19 PM
    LYNETTE [email protected]@LynetteKhooBT
    FLORENCE Regency, a privatised HUDC estate in Hougang, received three bids at the close of its public tender.

    But the collective sales committee was not able to award the tender to the top bidder as the bid price, while above the reserve price of S$600 million, was below valuation, BT understands.

    A valuation report was submitted by independent valuer Colliers International that valued the estate at S$629 million. As a result, the valuation became the new minimum price for Florence Regency, based on the terms of the collective sales agreement (CSA).

    In a letter to owners on Thursday, JLL said it is going back to all interested parties to consider an offer at or above the new minimum price.


    The laws governing collective sales allow for a private treaty to be concluded within 10 weeks from the close of the public tender. The tender for Florence Regency had closed on Wednesday.

    SEE ALSO: Jervois Gardens awarded to SC Global unit for S$72m

    Built in the late 1980s, the 336-unit estate is zoned residential with a gross plot ratio of 2.8 under URA's Master Plan 2014.

    With a balance lease term of some 71 years, the 389,236 square foot site could potentially support a total gross floor area of over 1.1 million sq ft or an estimated 1,100 to 1,300 apartment units.

    The estimated differential premiums for the lease top-up and increased built-up of the site would be about S$288.5 million.

    This would translate to a total land cost of S$842 per square foot per plot ratio (psf ppr) for the developer, which is below the S$860 psf ppr that an Oxley Holdings-led consortium paid for Serangoon Ville, and the S$965 psf ppr that Keppel Land and Wing Tai paid for the government land site along Serangoon North Avenue 1.

    Florence Regency is near Hougang MRT Station, which will become an interchange station when the planned Cross Island Line is completed, and the bus interchange with Hougang Mall.

    It is also within walking distance of Kovan MRT Station along Upper Serangoon Road, where there is a wide range of F&B options.

    The en bloc fever in Singapore has just started with nine sites sold for S$3.7 billion, including one industrial site, leading market watchers to believe that the en bloc upcycle is still at a nascent stage and the property market is in an early stage of recovery.

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    Quote Originally Posted by Arcachon View Post
    FLORENCE Regency, a privatised HUDC estate in Hougang, received three bids at the close of its public tender.

    But the collective sales committee was not able to award the tender to the top bidder as the bid price, while above the reserve price of S$600 million, was below valuation, BT understands.

    A valuation report was submitted by independent valuer Colliers International that valued the estate at S$629 million. As a result, the valuation became the new minimum price for Florence Regency, based on the terms of the collective sales agreement (CSA).

    In a letter to owners on Thursday, JLL said it is going back to all interested parties to consider an offer at or above the new minimum price.

    The laws governing collective sales allow for a private treaty to be concluded within 10 weeks from the close of the public tender. The tender for Florence Regency had closed on Wednesday.

    Built in the late 1980s, the 336-unit estate is zoned residential with a gross plot ratio of 2.8 under URA's Master Plan 2014.

    With a balance lease term of some 71 years, the 389,236 square foot site could potentially support a total gross floor area of over 1.1 million sq ft or an estimated 1,100 to 1,300 apartment units.

    The estimated differential premiums for the lease top-up and increased built-up of the site would be about S$288.5 million.

    This would translate to a total land cost of S$842 per square foot per plot ratio (psf ppr) for the developer, which is below the S$860 psf ppr that an Oxley Holdings-led consortium paid for Serangoon Ville, and the S$965 psf ppr that Keppel Land and Wing Tai paid for the government land site along Serangoon North Avenue 1.

    Florence Regency is near Hougang MRT Station, which will become an interchange station when the planned Cross Island Line is completed, and the bus interchange with Hougang Mall.

    It is also within walking distance of Kovan MRT Station along Upper Serangoon Road, where there is a wide range of F&B options.

    The en bloc fever in Singapore has just started with nine sites sold for S$3.7 billion, including one industrial site, leading market watchers to believe that the en bloc upcycle is still at a nascent stage and the property market is in an early stage of recovery.

    http://www.businesstimes.com.sg/real...dent-valuation
    oops, we posted at exactly the same time lol.

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    S$860 psf ppr that an Oxley Holdings-led consortium paid for Serangoon Ville

    S$965 psf ppr that Keppel Land and Wing Tai paid for the government land site along Serangoon North Avenue 1.

    Two tenders for land sites closed in the past three days, with a total of S$1b invested. The sites are located opposite each other at Serangoon Gardens and within 1km of the Hundred Palms executive condominium (EC), which was fully sold at its launch last weekend.

    The Oxley consortium bagged the Serangoon Ville en bloc site (tender reportedly closed on 25 July 2017) for S$499m (S$835psf ppr) while Keppel Land-Wing Tai JV won the Serangoon North Avenue 1 government land site (GLS) site for S$446m (S$965 psf ppr). Serangoon Ville has a maximum gross floor area (GFA) of almost double that of the Serangoon North Avenue 1 land site.

    1) Serangoon North Avenue 1 GLS site tender – Keppel Land-Wing Tai JV
    The Serangoon North Avenue 1 land site tender closed on Thursday, with the Keppel Land-Wing Tai JV winning the bid at S$446m (S$965 psf ppr) over 15 other bidders and a tight winning margin of 7%. Frasers Centrepoint came in second with a bid of S$905 psf, followed by the UOL-Singland JV and City Dev.

    The price was 16% higher than what Oxley paid for the Serangoon Ville en bloc deal, located just opposite. However, the premium could be justified by a cleaner acquisition process for a GLS site and hence, the ability to launch this site much faster (typically within 1 year); an en bloc sale typically takes roughly two years.

    The estimated breakeven is S$1,500 psf and the implied launch price could be above S$1,650 psf versus about S$1,000 psf for recent transactions in the area.

    Interesting trends to note: 1) The top four bidders were large local property developers; 2) there was more participation from local developers, with a few foreign developers such as Qingjian (JV), China Construction (South Pacific), and Greatview (Haojing Investment Group) in the mix; 3) Oxley bid a slightly higher price (S$850 psf) to its en bloc price (S$835 psf); and 4) among the large-cap developers, CapitaLand did not participate in this tender.

    2) Serangoon Ville en bloc deal – the Oxley consortium

    The Oxley consortium had just closed Singapore’s seventh en bloc deal year-to-date – buying Serangoon Ville for S$499m (S$835 psf ppr including development charges). The estimated breakeven price is S$1,300 psf, which implies a launch price of more than S$1,400psf. Oxley’s partners are Lian Beng, a KSH Holdings’ associate, and Super Group’s Teo family, the same team which bought Rio Casa en bloc in May.

    It was reported that the bid was very competitive, involving more than five bidders. Competition is building up in the en bloc space. Other potential en bloc sites coming up include Dunearn Court (tender closes on 6 September), Ville D’Este, Tampines Court, and Normanton Park.

    While some may be wondering whether the bidders can even make money at this price, we believe that there’s potential to turn in a profit if the spread between home prices in the Rest of Central Area (RCR) and Outside Central Area (OCR) widens. Another strategy would be to build smaller units averaging less than 70sqm and keeping prices at around S$1.3-S$1.5m, which is the price range of most transactions today.

    We continue to see optimism in the land bids, both for GLS and en bloc sites as developers compete to replenish their land bank and ride on a turn in sentiment in Singapore’s property market. However, we note that increasingly, developers/contractors are forming consortia or partnerships to bid for land, potentially to raise their pricing capabilities and to share risks.

    We remain positive on the Singapore property market. Our top picks are UOL and City Development as proxies to Singapore’s property market.

    https://www.dbs.com.sg/treasures/tem..._singapore.xml
    Last edited by Arcachon; 28-09-17 at 20:16.

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    Bids for Florence Regency come below independent valuation

    SEP 28, 2017


    FLORENCE Regency, a privatised HUDC estate in Hougang, received three bids at the close of its public tender.

    But the collective sales committee was not able to award the tender to the top bidder as the bid price, while above the reserve price of S$600 million, was below valuation, BT understands.

    A valuation report was submitted by independent valuer Colliers International that valued the estate at S$629 million. As a result, the valuation became the new minimum price for Florence Regency, based on the terms of the collective sales agreement (CSA).

    In a letter to owners on Thursday, JLL said it is going back to all interested parties to consider an offer at or above the new minimum price.

    The laws governing collective sales allow for a private treaty to be concluded within 10 weeks from the close of the public tender. The tender for Florence Regency had closed on Wednesday.

    Built in the late 1980s, the 336-unit estate is zoned residential with a gross plot ratio of 2.8 under URA's Master Plan 2014.

    With a balance lease term of some 71 years, the 389,236 square foot site could potentially support a total gross floor area of over 1.1 million sq ft or an estimated 1,100 to 1,300 apartment units.

    The estimated differential premiums for the lease top-up and increased built-up of the site would be about S$288.5 million.

    This would translate to a total land cost of S$842 per square foot per plot ratio (psf ppr) for the developer, which is below the S$860 psf ppr that an Oxley Holdings-led consortium paid for Serangoon Ville, and the S$965 psf ppr that Keppel Land and Wing Tai paid for the government land site along Serangoon North Avenue 1.

    Florence Regency is near Hougang MRT Station, which will become an interchange station when the planned Cross Island Line is completed, and the bus interchange with Hougang Mall.

    It is also within walking distance of Kovan MRT Station along Upper Serangoon Road, where there is a wide range of F&B options.

    The en bloc fever in Singapore has just started with nine sites sold for S$3.7 billion, including one industrial site, leading market watchers to believe that the en bloc upcycle is still at a nascent stage and the property market is in an early stage of recovery.

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    have developers turned cautious on the area? florence regency only received 3 bids and below 860psf.

    Quote Originally Posted by Arcachon View Post
    S$860 psf ppr that an Oxley Holdings-led consortium paid for Serangoon Ville

    S$965 psf ppr that Keppel Land and Wing Tai paid for the government land site along Serangoon North Avenue 1.

    Two tenders for land sites closed in the past three days, with a total of S$1b invested. The sites are located opposite each other at Serangoon Gardens and within 1km of the Hundred Palms executive condominium (EC), which was fully sold at its launch last weekend.

    The Oxley consortium bagged the Serangoon Ville en bloc site (tender reportedly closed on 25 July 2017) for S$499m (S$835psf ppr) while Keppel Land-Wing Tai JV won the Serangoon North Avenue 1 government land site (GLS) site for S$446m (S$965 psf ppr). Serangoon Ville has a maximum gross floor area (GFA) of almost double that of the Serangoon North Avenue 1 land site.

    1) Serangoon North Avenue 1 GLS site tender – Keppel Land-Wing Tai JV
    The Serangoon North Avenue 1 land site tender closed on Thursday, with the Keppel Land-Wing Tai JV winning the bid at S$446m (S$965 psf ppr) over 15 other bidders and a tight winning margin of 7%. Frasers Centrepoint came in second with a bid of S$905 psf, followed by the UOL-Singland JV and City Dev.

    The price was 16% higher than what Oxley paid for the Serangoon Ville en bloc deal, located just opposite. However, the premium could be justified by a cleaner acquisition process for a GLS site and hence, the ability to launch this site much faster (typically within 1 year); an en bloc sale typically takes roughly two years.

    The estimated breakeven is S$1,500 psf and the implied launch price could be above S$1,650 psf versus about S$1,000 psf for recent transactions in the area.

    Interesting trends to note: 1) The top four bidders were large local property developers; 2) there was more participation from local developers, with a few foreign developers such as Qingjian (JV), China Construction (South Pacific), and Greatview (Haojing Investment Group) in the mix; 3) Oxley bid a slightly higher price (S$850 psf) to its en bloc price (S$835 psf); and 4) among the large-cap developers, CapitaLand did not participate in this tender.

    2) Serangoon Ville en bloc deal – the Oxley consortium

    The Oxley consortium had just closed Singapore’s seventh en bloc deal year-to-date – buying Serangoon Ville for S$499m (S$835 psf ppr including development charges). The estimated breakeven price is S$1,300 psf, which implies a launch price of more than S$1,400psf. Oxley’s partners are Lian Beng, a KSH Holdings’ associate, and Super Group’s Teo family, the same team which bought Rio Casa en bloc in May.

    It was reported that the bid was very competitive, involving more than five bidders. Competition is building up in the en bloc space. Other potential en bloc sites coming up include Dunearn Court (tender closes on 6 September), Ville D’Este, Tampines Court, and Normanton Park.

    While some may be wondering whether the bidders can even make money at this price, we believe that there’s potential to turn in a profit if the spread between home prices in the Rest of Central Area (RCR) and Outside Central Area (OCR) widens. Another strategy would be to build smaller units averaging less than 70sqm and keeping prices at around S$1.3-S$1.5m, which is the price range of most transactions today.

    We continue to see optimism in the land bids, both for GLS and en bloc sites as developers compete to replenish their land bank and ride on a turn in sentiment in Singapore’s property market. However, we note that increasingly, developers/contractors are forming consortia or partnerships to bid for land, potentially to raise their pricing capabilities and to share risks.

    We remain positive on the Singapore property market. Our top picks are UOL and City Development as proxies to Singapore’s property market.

    https://www.dbs.com.sg/treasures/tem..._singapore.xml

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    Quote Originally Posted by bargain hunter View Post
    have developers turned cautious on the area? florence regency only received 3 bids and below 860psf.
    my guess: oversupply of incoming units in this area, coupled with a large plot size, and perhaps lack of positives of the plot (for eg it's not that near to the MRT stations).

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    Bids for Florence Regency come in below independent valuation

    Marketing agent JLL is going back to all interested parties to consider an offer at or above the valuation price

    Sep 29, 2017

    Lynette Khoo


    FLORENCE Regency, a privatised HUDC estate in Hougang, received three bids at the close of its public tender.

    But the collective sales committee was not able to award the tender to the top bidder as the bid price, while above the reserve price of S$600 million, was below valuation, BT understands.

    A valuation report was submitted by independent valuer Colliers International that valued the estate at S$629 million. As a result, the valuation became the new minimum price for Florence Regency, based on the terms of the collective sales agreement.

    In a letter to owners on Thursday, sole marketing agent JLL said it is going back to all interested parties to consider an offer at or above the new minimum price.

    The laws governing collective sales allow for a private treaty to be concluded within 10 weeks from the close of the public tender. The tender for Florence Regency had closed on Wednesday.

    Built in the late 1980s, the 336-unit estate is zoned residential with a gross plot ratio of 2.8 under URA's Master Plan 2014.

    With a balance lease term of some 71 years, the 389,236 square foot site could potentially support a total gross floor area of over 1.1 million sq ft or an estimated 1,100 to 1,300 apartment units.

    The estimated differential premiums for the lease top-up and increased built-up of the site would be about S$288.5 million.

    This would translate to a total land cost of S$842 per square foot per plot ratio (psf ppr) for the developer, which is below the S$860 psf ppr that an Oxley Holdings-led consortium paid for Serangoon Ville, and the S$965 psf ppr that Keppel Land and Wing Tai paid for the government land sale site along Serangoon North Avenue 1.

    Florence Regency is near the Hougang MRT station, which will become an interchange station when the planned Cross Island Line is completed, and the bus interchange with Hougang Mall. It is also within walking distance of the Kovan MRT Station along Upper Serangoon Road, where there is a wide range of F&B options.

    The en bloc fever in Singapore has seen 11 sites sold for over S$4 billion this year, including one industrial site. Market watchers believe that the en bloc upcycle is still at a nascent stage and the property market is in an early stage of recovery. Some 50 to 60 residential projects are reportedly in various stages of the en bloc process.

    More properties are also jumping onto the bandwagon of the collective sales process. Owners of Landmark Towers and Gilstead Court have appointed JLL as their marketing agent; Thomson View's owners have appointed Knight Frank; owners of Pacific Mansion, Park House and Riviera Point recently appointed CBRE. Teakhwa Real Estate has been appointed by owners of Vista Park.

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    Default Standoff in Florence Regency en bloc sale amid risk of oversupply in area

    http://www.businesstimes.com.sg/real...ime=1507332754

    With the new minimum price for the site being S$629 million, the estimated differential premiums for the lease top-up and increased built-up area of the site would be about S$288.5 million. This would translate to a total land cost of S$842 per square foot per plot ratio (psf ppr) for the developer. Some market watchers believe this could cross S$900 psf ppr if the government raises development charges further.

    In comparison, an Oxley Holdings-led consortium is estimated to be paying S$860 psf ppr for Serangoon Ville, and S$706 psf ppr for Rio Casa or S$669 psf ppr if a 10 per cent balcony bonus gross floor area is included. Keppel Land and Wing Tai paid S$965 psf ppr for the government land sale (GLS) site in Serangoon North Avenue 1; that site is higher in psf pricing, but will be launch-ready before the Florence Regency site.

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    Rio Casa put the price too low.

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    Quote Originally Posted by star View Post
    Rio Casa put the price too low.
    better than bedok

    $241 psf per plot ratio

    My friend cry all the way to the bank.

    http://www.stproperty.sg/articles-pr...c-sale/a/58729

    http://hudcsingapore.com/hudc/enbloc...t-view-estate/

    http://www.teoalida.com/singapore/hudclist/
    Last edited by Arcachon; 07-10-17 at 16:36.

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    Quote Originally Posted by Arcachon View Post
    If put up on sale now likely get $2m each... This shows that when u got enbloc u must quickly buy another property. Dragging too long is not a good choice.

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    Quote Originally Posted by star View Post
    If put up on sale now likely get $2m each... This shows that when u got enbloc u must quickly buy another property. Dragging too long is not a good choice.
    There are a few in this forum caught in that situation. Waiting for the best time to enter again. Wait and wait. Suddenly gate close and game over.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by Kelonguni View Post
    There are a few in this forum caught in that situation. Waiting for the best time to enter again. Wait and wait. Suddenly gate close and game over.
    They are not as bad as my primary school classmates, they take money out from CPF and feel great.

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    Quote Originally Posted by Kelonguni View Post
    There are a few in this forum caught in that situation. Waiting for the best time to enter again. Wait and wait. Suddenly gate close and game over.
    there was still time earlier this year (or was it last year) when u identified to them.

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    They are very smart for doing that indeed!


    Quote Originally Posted by Arcachon View Post
    They are not as bad as my primary school classmates, they take money out from CPF and feel great.

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    Quote Originally Posted by bargain hunter View Post
    there was still time earlier this year (or was it last year) when u identified to them.
    I identified for two years already. If they listened the SSD will be 8% or at least lesser.

    Now all old units off the market, what resales to go for?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by teddybear View Post
    They are very smart for doing that indeed!
    Indeed they are smart, some of the reason they give.

    1. enjoy while they can before they die.
    2. need the money to renovate the HDB and spend.
    3. outsmart the system.

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    Quote Originally Posted by teddybear View Post
    They are very smart for doing that indeed!
    People like to compare with others especially those who are worst off than them and feel a sense of achievement.

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    Smart indeed! Better than keep in CPF Life and get 0% return for your money if you cannot live past 85 years old? (or negative if you live even shorter than that!)

    Life is short! Most of my generation would be dead even before 80 years old (let along 85 years old)! Actually, some had even died much earlier than that, can't even make pass 70 years old!

    Quote Originally Posted by Arcachon View Post
    Indeed they are smart, some of the reason they give.

    1. enjoy while they can before they die.
    2. need the money to renovate the HDB and spend.
    3. outsmart the system.

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    Quote Originally Posted by Kelonguni View Post
    I identified for two years already. If they listened the SSD will be 8% or at least lesser.

    Now all old units off the market, what resales to go for?
    i see freehold resales rapidly taken off the market, even in CCR. still have old 99 leasehold avail hee. can en bloc at the next cycle teehee.

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    Quote Originally Posted by bargain hunter View Post
    i see freehold resales rapidly taken off the market, even in CCR. still have old 99 leasehold avail hee. can en bloc at the next cycle teehee.
    That's why all these will chiong to high prices as well. One question though: from enbloc till move out is there a two year window or more like 6 months? ST article says 2 years. When does SSD computation begin after agreement to enbloc?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    i think its about 1 year max, where got take 2 years one?

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    Quote Originally Posted by bargain hunter View Post
    i think its about 1 year max, where got take 2 years one?
    I also think she is mistaken.

    http://www.straitstimes.com/singapor...-to-move-again

    Said Madam Tan: "I think I can continue living here (at Normanton Park) for about two years, so I will start looking around later."
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Standoff in Florence Regency en bloc sale amid risk of oversupply in area

    Marketing agent JLL reaching out to other developers to at least match valuer's figure of S$629m

    Oct 07, 2017

    Lynette Khoo



    THREE bidders for Florence Regency, a privatised HUDC estate in Hougang, are refusing to raise their bid prices to match the S$629 million valuation for the development, signalling that - even amid en bloc euphoria - developers are still keeping in view the risk of oversupply in the area.

    JLL, the marketing agent for the collective sale, is courting other developers in the hope of closing a deal under private treaty within 10 weeks of the close of the public tender.

    But sources told The Business Times that developers are more concerned about the incoming supply in the vicinity than the land price.

    The public tender for a collective sale of Florence Regency follows the collective sales of two other former HUDC estates in the area - Rio Casa in Hougang Avenue 7 and Serangoon Ville in Serangoon North Avenue 1; there is also the government's sale of a site in Serangoon North Avenue 1. These three sites alone can generate more than 3,000 units.

    One of the three bidders for Florence Regency is said to be Kingsford Development, which secured the Normanton Park collective sale site at S$830.1 million on Thursday.

    Florence Regency's tender had closed on Sept 27, but the collective sales committee (CSC) was unable to award the tender although the top bid was above the reserve price of S$600 million, as it was below Colliers International Singapore's valuation of S$629 million.

    Under the terms of the collective sales agreement drafted by law firm Lee & Lee, the sale price cannot be lower than the valuation.

    In a letter to the owners of the 336-unit estate on Friday, JLL regional director for capital markets Tan Hong Boon said: "We have gone back to the parties which made the submissions, requesting that they increase their bids and re-consider their terms and conditions. However, they have declined.

    "We are in discussions with several developers right now and hope to be able to secure offers at or above S$629 million for Florence Regency and present the best offer to the CSC and owners for consideration and acceptance."

    If no buyer is found during this private treaty period till Dec 5, the owners of Florence Regency would have to plan another public tender exercise in January 2018.

    With the new minimum price for the site being S$629 million, the estimated differential premiums for the lease top-up and increased built-up area of the site would be about S$288.5 million. This would translate to a total land cost of S$842 per square foot per plot ratio (psf ppr) for the developer. Some market watchers believe this could cross S$900 psf ppr if the government raises development charges further.

    In comparison, an Oxley Holdings-led consortium is estimated to be paying S$860 psf ppr for Serangoon Ville, and S$706 psf ppr for Rio Casa or S$669 psf ppr if a 10 per cent balcony bonus gross floor area is included. Keppel Land and Wing Tai paid S$965 psf ppr for the government land sale (GLS) site in Serangoon North Avenue 1; that site is higher in psf pricing, but will be launch-ready before the Florence Regency site.

    Edmund Tie & Company head of research Lee Nai Jia said that the land rate for Florence Regency reflects the market conditions and that bidders may be mindful of the number of nearby projects that will be launched at around the same time. "In other words, they have to account for the risks associated with extension charges and additional buyer's stamp duty (ABSD)."

    The qualifying certificate conditions, which affect developers with even a single non-Singaporean shareholder and/or director, require them to complete their projects within five years of acquiring the site, and to sell all the units within two years of completion. If they fail to do this, they incur extension charges for the unsold units. Since late 2011, developers have also had to sell out a project within five years to qualify for ABSD remission.

    The Florence Regency site is expected to generate 1,100 to 1,300 apartment units. ZACD Group executive director Nicholas Mak noted that potential competition in the Hougang/Sengkang region is seen as a deterrence, with the Rio Casa site seen as having much pricing flexibility.

    "Developers will also enjoy more options from en bloc sales in the coming months, so there is no need for them to pay a high premium," he added.

    Meanwhile, public tenders for two 12-unit freehold developments - Dunearn Court in the prime District 11 and Villa D'Este in prime District 10 - closed on Sept 6 and Aug 25 respectively. Their respective marketing agents Knight Frank and CBRE said that they are working with some developers to conclude a deal.

  28. #28
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    Default Florence Regency sold to Chinese developer Logan Property at $629 mil

    Florence Regency sold to Chinese developer Logan Property at $629 mil

    By Angela Teo / EdgeProp | October 20, 2017


    Florence Regency, a former HUDC estate, has been sold to Hong Kong-listed Chinese developer Logan Property in a collective sale at $629 million.

    After factoring in estimated differential premiums of $288.6 million to top up the lease to a fresh 99 years and to develop the site to a gross plot ratio of 2.8, the land cost works out to be about $842 psf ppr, says marketing agent JLL.

    The sale price matches Colliers International’s valuation of the site, which was submitted at the close of the public tender exercise for Florence Regency on Sept 27. At the close of the tender, the property received three bids which were above the reserve price of $600 million but which fell below Colliers’s valuation.

    Owners can expect to receive gross sales proceeds between $1.84 million to $1.89 million for each unit, says Tan Hong Boon, regional director at JLL.

    According to JLL, this is the first collective sale attempt by the owners of Florence Regency, with the required 80% consent level reached in less than three weeks.

    Based on the 2014 Master Plan, the 389,236 sq ft site at Hougang Avenue 2 is zoned ‘Residential’ with a gross plot ratio of 2.8, which works out to be an estimated 1,100 to 1,300 units. Florence Regency is located within a 1km radius of Holy Innocents’ Primary School and Xinmin Primary School.

  29. #29
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    Default

    So minimum must meet valuer’s amount even if owners are ok with lower price.

    Most importantly, developers still bite!

    Logan show of financial might!
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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