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07-07-12, 00:48
http://www.businesstimes.com.sg/archive/friday/premium/singapore/pheng-geck-site-draws-13-bids-led-1148m-offer
Published June 29, 2012
Pheng Geck site draws 13 bids, led by $114.8m offer
Construction group Santarli's bid is just 0.9% above closest rival OUE's
By Kalpana Rashiwala
HOME-GROWN construction group Santarli yesterday emerged as top bidder for a 99-year private condo site at Pheng Geck Avenue.
The site near Potong Pasir MRT Station drew a whopping 13 bids. Analysts say this reflects developers' confidence in a choice city-fringe site near an MRT station.
The top bid from Santarli Corporation - at $114.8 million or $628.22 per square foot per plot ratio (psf ppr) - was at the upper end of expectations. Santarli's bid came in $1.05 million or 0.9 per cent above the next highest offer of $622.47 psf ppr by Overseas Union Enterprise (OUE) unit OUE Reef Development.
Santarli executive director Chan Thiam Seng told BT yesterday that the group's breakeven cost will be slightly above $1,000 psf and it is looking at an average selling price of about $1,300 psf for its proposed project, which it hopes to launch in about nine months. Santarli's scheme involves an 18-storey development with about 240 units, comprising mostly two and three-bedroom apartments, although there will also be some one and four-bedders.
"We're very happy with our bid price because we are paying just around $1 million more than the next highest bid," Mr Chan added.
This will be Santarli's second property development in Singapore after Adora Green in Yishun. Its unit SK Land teamed up with Guthrie GTS to clinch the site for the Housing & Development Board's Design Build and Sell Scheme (DBSS) project in 2010. Mr Chan said Santarli is on the lookout for more well-located private housing sites in Singapore. The group already has offices in China, Hong Kong and Malaysia.
Mr Chan co-founded Santarli with two friends, Lee Boon Teow and Sim How Tiong, 29 years ago.
The plot tendered yesterday is the third 99-year private housing site in the vicinity to be sold under the Government Land Sales Programme since 2010.
The first was sold in June 2010 for about $607 psf ppr to Qingdao Construction, which is developing the plot into Nin Residence. The condo was launched last year and based on caveats data, achieved an average price of about $1,225 psf, although smaller units generally sold at $1,300-1,500 psf, notes Credo Real Estate executive director Ong Teck Hui.
In August last year, Tuan Sing clinched the site next to the one tendered yesterday for $567 psf ppr. Interestingly, at yesterday's tender, Tuan Sing's unit Dillenia Land bid $537.93 psf ppr, placing it as the third lowest bidder.
SLP International executive director Nicholas Mak commented that the higher unit land price achieved at the latest tender will give Tuan Sing greater flexibility in pricing strategy when it launches its project. He also notes that the high number of bids yesterday indicates that developers are confident that residential developments located near MRT stations will continue to enjoy robust demand among homebuyers.
Credo's Mr Ong said he would have expected a slightly more more conservative top bid yesterday as Tuan Sing has a time and price advantage on its next-door project. He also pointed to a "fair bit of supply in the area" from other projects near MRT stations including unsold units at Eight Riversuites and Bartley Residences as well as a yet to be launched project at Mount Vernon Road.
ERA Realty Network's key executive officer Eugene Lim highlighted that the land opposite the site tendered yesterday is zoned for commercial development, and a shopping centre the size of Nex may be built on it in future.
Other bidders at yesterday's tender included BBR Property, which bid $112.6 million or about $616 psf ppr. City Developments' unit Verspring Properties came in at nearly $602 psf ppr. Frasers Centrepoint's Opal Star teamed up with Lum Chang's Binjai Holdings for a $600.19 psf ppr bid.
Ecco Development, a unit of Teambuild Land, bid at $591.01 psf ppr and Sin Heng Chan's Buildtec Archiware at $584.44 psf ppr. Also bidding were a tie-up involving Maxdin, BPK Development and Ryobi Kiso Holdings unit Ryobi Development, which offered $574.59 psf ppr.
Hock Lian Seng Holdings joined forces with Meadows Bright Development to place a bid of around $571 psf ppr. Other bidders include a Hoi Hup-Sunway consortium ($557 psf ppr), Hiap Hoe's Leng Hoe Development ($527 psf ppr) and Vantage Properties, which placed the lowest bid of $506.19 psf ppr.
Published June 29, 2012
Pheng Geck site draws 13 bids, led by $114.8m offer
Construction group Santarli's bid is just 0.9% above closest rival OUE's
By Kalpana Rashiwala
HOME-GROWN construction group Santarli yesterday emerged as top bidder for a 99-year private condo site at Pheng Geck Avenue.
The site near Potong Pasir MRT Station drew a whopping 13 bids. Analysts say this reflects developers' confidence in a choice city-fringe site near an MRT station.
The top bid from Santarli Corporation - at $114.8 million or $628.22 per square foot per plot ratio (psf ppr) - was at the upper end of expectations. Santarli's bid came in $1.05 million or 0.9 per cent above the next highest offer of $622.47 psf ppr by Overseas Union Enterprise (OUE) unit OUE Reef Development.
Santarli executive director Chan Thiam Seng told BT yesterday that the group's breakeven cost will be slightly above $1,000 psf and it is looking at an average selling price of about $1,300 psf for its proposed project, which it hopes to launch in about nine months. Santarli's scheme involves an 18-storey development with about 240 units, comprising mostly two and three-bedroom apartments, although there will also be some one and four-bedders.
"We're very happy with our bid price because we are paying just around $1 million more than the next highest bid," Mr Chan added.
This will be Santarli's second property development in Singapore after Adora Green in Yishun. Its unit SK Land teamed up with Guthrie GTS to clinch the site for the Housing & Development Board's Design Build and Sell Scheme (DBSS) project in 2010. Mr Chan said Santarli is on the lookout for more well-located private housing sites in Singapore. The group already has offices in China, Hong Kong and Malaysia.
Mr Chan co-founded Santarli with two friends, Lee Boon Teow and Sim How Tiong, 29 years ago.
The plot tendered yesterday is the third 99-year private housing site in the vicinity to be sold under the Government Land Sales Programme since 2010.
The first was sold in June 2010 for about $607 psf ppr to Qingdao Construction, which is developing the plot into Nin Residence. The condo was launched last year and based on caveats data, achieved an average price of about $1,225 psf, although smaller units generally sold at $1,300-1,500 psf, notes Credo Real Estate executive director Ong Teck Hui.
In August last year, Tuan Sing clinched the site next to the one tendered yesterday for $567 psf ppr. Interestingly, at yesterday's tender, Tuan Sing's unit Dillenia Land bid $537.93 psf ppr, placing it as the third lowest bidder.
SLP International executive director Nicholas Mak commented that the higher unit land price achieved at the latest tender will give Tuan Sing greater flexibility in pricing strategy when it launches its project. He also notes that the high number of bids yesterday indicates that developers are confident that residential developments located near MRT stations will continue to enjoy robust demand among homebuyers.
Credo's Mr Ong said he would have expected a slightly more more conservative top bid yesterday as Tuan Sing has a time and price advantage on its next-door project. He also pointed to a "fair bit of supply in the area" from other projects near MRT stations including unsold units at Eight Riversuites and Bartley Residences as well as a yet to be launched project at Mount Vernon Road.
ERA Realty Network's key executive officer Eugene Lim highlighted that the land opposite the site tendered yesterday is zoned for commercial development, and a shopping centre the size of Nex may be built on it in future.
Other bidders at yesterday's tender included BBR Property, which bid $112.6 million or about $616 psf ppr. City Developments' unit Verspring Properties came in at nearly $602 psf ppr. Frasers Centrepoint's Opal Star teamed up with Lum Chang's Binjai Holdings for a $600.19 psf ppr bid.
Ecco Development, a unit of Teambuild Land, bid at $591.01 psf ppr and Sin Heng Chan's Buildtec Archiware at $584.44 psf ppr. Also bidding were a tie-up involving Maxdin, BPK Development and Ryobi Kiso Holdings unit Ryobi Development, which offered $574.59 psf ppr.
Hock Lian Seng Holdings joined forces with Meadows Bright Development to place a bid of around $571 psf ppr. Other bidders include a Hoi Hup-Sunway consortium ($557 psf ppr), Hiap Hoe's Leng Hoe Development ($527 psf ppr) and Vantage Properties, which placed the lowest bid of $506.19 psf ppr.