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02-10-12, 16:17
http://www.businesstimes.com.sg/specials/property/bids-yishun-industrial-site-beat-expectations-20120927
Published September 27, 2012
Bids for Yishun industrial site beat expectations
Soilbuild leads pack of 5, with offer of $100.48 psf ppr
By zeinab yusuf saiwalla
AN INDUSTRIAL site at Yishun Avenue 9 drew a total of five bids with a top offer of $31.69 million or $100.48 per square foot per plot ratio (psf ppr) from Soilbuild Group Holdings, slightly above market expectations.
Property consultants had initially estimated offers of between $50 and $70 psf ppr owing to the shorter, 30-year lease period and a relatively smaller size (11,719.9 sq m or 126,152 sq ft), in comparison to adjacent plots.
OKH Holdings, was the second highest bidder, with an offer of $28.7 million or $91 psf ppr.
The lowest offer for the site, which has a maximum permissible gross plot ratio of 2.5, was from Vantage Properties at $22.8 million or $72.28 psf ppr.
"The offers are fairly bullish because at this price, their breakeven price could be as high as $265-290 psf ppr," commented Nicholas Mak, SLP International executive director.
"But that said, Soilbuild is an experienced property developer, and must know what they are doing. Also, since they are a construction firm they can control the cost element."
Furthermore, given the recent offer of $95.13 psf ppr by Soon Hock Tuas Development for another plot of land at Yishun Avenue 9 last month, property consultants are not all that surprised at the higher bids.
Soilbuild had made an offer for that site as well, at $71.06 psf ppr but ranked third in its offer.
Mr Mak explained that although the government's reduction of land lease to 30 years can probably slow down the pace of industrial property price increases, developers are expecting a lot of liquidity in the market and that is why prices are not sky-rocketing but slowly creeping up.
Last month, Soilbuild was awarded an industrial site at Bukit Batok Street 23 after it submitted the highest bid of $32.33 million or $80.03 psf ppr for the 161,578 sq ft site.
Published September 27, 2012
Bids for Yishun industrial site beat expectations
Soilbuild leads pack of 5, with offer of $100.48 psf ppr
By zeinab yusuf saiwalla
AN INDUSTRIAL site at Yishun Avenue 9 drew a total of five bids with a top offer of $31.69 million or $100.48 per square foot per plot ratio (psf ppr) from Soilbuild Group Holdings, slightly above market expectations.
Property consultants had initially estimated offers of between $50 and $70 psf ppr owing to the shorter, 30-year lease period and a relatively smaller size (11,719.9 sq m or 126,152 sq ft), in comparison to adjacent plots.
OKH Holdings, was the second highest bidder, with an offer of $28.7 million or $91 psf ppr.
The lowest offer for the site, which has a maximum permissible gross plot ratio of 2.5, was from Vantage Properties at $22.8 million or $72.28 psf ppr.
"The offers are fairly bullish because at this price, their breakeven price could be as high as $265-290 psf ppr," commented Nicholas Mak, SLP International executive director.
"But that said, Soilbuild is an experienced property developer, and must know what they are doing. Also, since they are a construction firm they can control the cost element."
Furthermore, given the recent offer of $95.13 psf ppr by Soon Hock Tuas Development for another plot of land at Yishun Avenue 9 last month, property consultants are not all that surprised at the higher bids.
Soilbuild had made an offer for that site as well, at $71.06 psf ppr but ranked third in its offer.
Mr Mak explained that although the government's reduction of land lease to 30 years can probably slow down the pace of industrial property price increases, developers are expecting a lot of liquidity in the market and that is why prices are not sky-rocketing but slowly creeping up.
Last month, Soilbuild was awarded an industrial site at Bukit Batok Street 23 after it submitted the highest bid of $32.33 million or $80.03 psf ppr for the 161,578 sq ft site.