View Full Version : S$1,163 psf ppr top bid for Kim Tian site
A 99-year leasehold private housing site in Kim Tian Road near Tiong Bahru MRT Station drew 11 bids at a state tender that closed on Thursday.
The top bid from Keppel Land unit Harvestland Development was S$550.28 million or S$1,162.86 per square foot per plot ratio (psf ppr). This was 7.2 per cent higher than the next highest bid of $1,084.78 psf ppr by a partnership involving Far East SOHO Pte Ltd, Far East Orchard Limited and Sekisui House.
The lowest bid from Asset Legend Limited was S$608.21 psf ppr.
The tender was conducted by the Urban Redevelopment Authority.
How come developers can bid so high for 99LH land but they shun en bloc sale in CCR? Now that the prices of GLS is more than 1k psf ppr for good location, by right the enbloc market should be hot right?
En bloc deals can be disrupted by some residents who don't want to sell.
thomastansb
19-04-13, 13:33
Like this how prices will drop? Now RCR also selling 1.8k psf liao.
blackjack21trader
19-04-13, 13:39
How come developers can bid so high for 99LH land but they shun en bloc sale in CCR? Now that the prices of GLS is more than 1k psf ppr for good location, by right the enbloc market should be hot right?
dun worry about it. after they realised there is very high demand for freehold CCR, they will start to enbloc the few remaining freehold CCR condos liao. just watch especially Singapore River area.
good luck.
proud owner
19-04-13, 13:51
dun worry about it. after they realised there is very high demand for freehold CCR, they will start to enbloc the few remaining freehold CCR condos liao. just watch especially Singapore River area.
good luck.
like the FH one at the end of Boat Quay ? where below are resutarants and upstairs are residentials ?
Like this how prices will drop? Now RCR also selling 1.8k psf liao.
I think at this price, break even is about $1,650 psf already.
Dont think they will sell at $1,800 psf.
More like $1,950 psf.
Forumers : If you are hardworking and know of this information, what will be your next move ? If RCR Tiong Bahru is going to do at $1,950 psf, I think anything in CCR at $2,200 is certainly good value.
DKSG
bargain hunter
19-04-13, 14:13
that one is 99 and not freehold i think.
like the FH one at the end of Boat Quay ? where below are resutarants and upstairs are residentials ?
I think at this price, break even is about $1,650 psf already.
Dont think they will sell at $1,800 psf.
More like $1,950 psf.
Forumers : If you are hardworking and know of this information, what will be your next move ? If RCR Tiong Bahru is going to do at $1,950 psf, I think anything in CCR at $2,200 is certainly good value.
DKSG
Be it selling at $1,800 or $1,950 psf..
Once you passby Seahill (FEO) site.. and saw the BIG BIG word "from $1,680 psf".. then you will realise this project at Kim Tian is cheap cheap lah :D
TWIN REGENCY 26 Kim Tian Road #28-02 1 91 Strata 1,780,000 19560 1817 09-APR-2013 Condominium Freehold 2007 Resale HDB 03 16 169277 Central Region Bukit Merah
Makes Soleil current psf look like a joke
SOLEIL @ SINARAN 2 Sinaran Drive #21-07 1 87 Strata 1,820,000 20920 1943 05-APR-2013 Condominium 99 Yrs From 23/10/2006 2011 Resale HDB 11 30 307467 Central Region Novena
I think developers strategy now is target big fish is small pond rather than big fish in big pond. Both are big fishes, but big fishes will look bigger in the smaller pond hence offer them more feel good and exclusive effect.
Anything that is near MRT, is BUY BUY BUY.
Wanna find the next pot of gold? Go find out where will LTA build the new stations for the new MRT line.
bargain hunter
19-04-13, 15:06
bro, it will be different. ur two examples are 900+ sq ft 2 BEDDERS. kepland and all future launches, 9xx to 10xx sq ft will be 3 bedders. that's how developers make the new units look like having "good value". same quantum can buy 3 bedder instead of "only" 2 bedders at soleil or twin.
Makes Soleil current psf look like a joke
SOLEIL @ SINARAN 2 Sinaran Drive #21-07 1 87 Strata 1,820,000 20920 1943 05-APR-2013 Condominium 99 Yrs From 23/10/2006 2011 Resale HDB 11 30 307467 Central Region Novena
phantom_opera
19-04-13, 15:35
Twin Regency highest psf achieved just b4 the bid
2013-04-09 #XX-XX 980 1,817psf 2010-02-10 1,399 409,640 1,154 8.6
2013-02-27 #XX-XX 980 1,817psf 2007-06-22 1,256 549,780 2,077 6.7
bro, it will be different. ur two examples are 900+ sq ft 2 BEDDERS. kepland and all future launches, 9xx to 10xx sq ft will be 3 bedders. that's how developers make the new units look like having "good value". same quantum can buy 3 bedder instead of "only" 2 bedders at soleil or twin.
I think 900-1000 for 3 bedder is a little too small for upmarket condo. I think now the trend is 900 -1000 sqft 2 bedder + loft, either in the MBR or living area.
bargain hunter
19-04-13, 15:47
echelon's 3 bedder was 1001 sq ft. i think expect the same for this kepland project. 4 bedder is max of 1350 sq ft. kepland already announced that 1 to 4 bedders at 500 sq ft to 1350 sq ft.
I think 900-1000 for 3 bedder is a little too small for upmarket condo. I think now the trend is 900 -1000 sqft 2 bedder + loft, either in the MBR or living area.
4 beds won't cross 1400psf nowadays.
bargain hunter
19-04-13, 18:24
1400 sq ft u mean. :) being < 1400 sq ft ensures it will be > 1400psf. hahahahahahahahahaha. fun with numbers but the fun is FOR developers to create their profits, not for buyers who are gonna buy 1350 sq ft at 2000psf = 2.7m.
4 beds won't cross 1400psf nowadays.
Yeah 1400sf. Fat fingers. Suddenly the numbers are quite repetitive. Next time the suburban project size 1400sf will go for for 1400psf...
http://www.straitstimes.com/premium/top-the-news/story/record-bid-550m-plum-tiong-bahru-housing-site-20130419
Record bid of $550m for plum Tiong Bahru housing site
Published on Apr 19, 2013
By Melissa Tan
AN ALL-IN bidding battle among 11 developers for a plum plot in Tiong Bahru ended up smashing price records for a residential site.
The land in Kim Tian Road drew a top bid of $550.28 million, or $1,163 per sq ft (psf) per plot ratio (ppr), from Keppel Land's Harvestland Development.
That is the highest price per square foot ever tendered for a purely residential site in the Government Land Sales (GLS) programme. It beat the old record set last August when Far East Organization offered $1,108 psf ppr, or $45.8 million, for a small Farrer Road site.
It also trumped analysts' predictions that the top bid would not exceed $920 psf ppr with no more than 10 bidders in the fray.
At over half a billion dollars, the total amount is also among the largest sums ever bid for a GLS residential site.
The next two bids also went through the roof - a Far East Organization-led consortium offered $1,085 psf ppr, or $513.3 million, while a City Developments-led group put up $1,017 psf ppr, or $481.1 million.
While experts were surprised at the sheer size of the bids, they noted that developers are fighting tooth and nail to get well-located sites near MRT stations and to boost their land banks.
The fact that three of the 11 tenders were above the $1,000 psf ppr mark "indicates that some developers are still very bullish on the middle to high-end residential market segment", said SLP International research head Nicholas Mak.
The bullish top bid for the 99-year leasehold site comes despite government efforts to reduce land prices, including offering more sites for tender and having tenders for multiple sites close on the same day.
The plot is 118,302 sq ft with a maximum gross floor area of 473,214 sq ft. The number of homes is capped at 500, due to traffic considerations.
Analysts noted that Tiong Bahru, a city-fringe heritage estate with art deco-style houses, has been revitalised in recent years by hip eateries and boutique retail outlets. It is also very near Orchard Road and the Central Business District.
DWG senior manager Lee Sze Teck said the developer could tap pent-up demand in Tiong Bahru considering that the last major project launch there was The Regency At Tiong Bahru, a freehold 158-unit condominium, in 2006.
There has also been a limited supply of new residential plots.
CBRE Research associate director Desmond Sim noted that GLS sites in Tiong Bahru have been few and far between.
The most recent one sold in March 2003 and was developed into the Meraprime condo.
Keppel Land said it plans to develop the Kim Tian Road site into about 500 homes, ranging from 500 sq ft to 1,350 sq ft in one- to four-bedroom configurations.
It will be its first project in Tiong Bahru, said Keppel Land's president for Singapore, Mr Tan Swee Yiow, in a statement.
Mr Mak said Keppel Land is expected to incur higher than usual building costs due to site regulations and restrictions. These include varying maximum building heights. Some buildings will be capped at six storeys, some at 25, some at 30 and some at 40.
Mr Mak estimates the break-even cost at $1,740 to $1,800 psf while DWG's Mr Lee puts it at between $1,500 and $1,550 psf with sale prices at $1,800 to $1,850 psf.
[email protected]
Developer land bank low so guess what is their next step towards their continued existence.
http://www.businesstimes.com.sg/premium/top-stories/keplands-top-bid-sets-new-high-housing-land-20130419
Published April 19, 2013
KepLand's top bid sets new high for housing land
It bids $1,162.86 psf ppr for 99-year private housing site in Kim Tian Road
By Kalpana Rashiwala
[SINGAPORE] A new high has been set for 99-year private housing land offered at a state tender.
The $1,162.86 per square foot per plot ratio (psf ppr) top bid from Keppel Land unit Harvestland Development for a plum site in Kim Tian Road was above expectations.
It also surpassed the previous high of $1,107.80 psf ppr that Far East Organization paid last August for a small plot next to Lutheran Towers along Farrer Road.
KepLand topped yesterday's tender for the plot near Tiong Bahru MRT Station and Tiong Bahru Plaza with a $550.28 million bid. This was 7.2 per cent more than the $513.33 million or $1,084.78 psf ppr from a Far East group-Sekisui partnership. The third highest bid, from a City Developments-led consortium, was $1,016.67 psf ppr. There were 11 bids in all.
Noting that the top three bids were above $1,000 psf ppr, SLP International executive director Nicholas Mak said that "some developers are still very bullish on the middle-high-end residential market segment, especially if there is limited new supply in that location".
KepLand's bid was 3.86 times what MCL Land paid for the previous 99-year private housing site sold by the state in the vicinity a decade ago - in March 2003. MCL paid $301 psf ppr for its site, which it has since developed into the MeraPrime condo. That tender had drawn 12 bids.
For the Kim Tian plot, property consultants had predicted bids of about $850-950 psf ppr when it was launched in late-February by the Urban Redevelopment Authority (URA).
CBRE associate director Desmond Sim notes that the site's proximity to the Tiong Bahru MRT station and established amenities outweighed the site's building restrictions.
These include maximum heights of 25, 30 and 40 storeys for different sections of the site and a maximum of 500 homes due to traffic issues in the locality. There is also a requirement for a basement carpark, which is more costly compared with a multi-storey carpark.
Market watchers' estimates of KepLand's breakeven cost range from $1,660 psf to $1,800 psf, with some suggesting that the group could be looking at an average selling price of around $2,000 psf.
They see KepLand taking the cue from Echelon, located near Redhill MRT Station, one stop away. Echelon's developer, City Developments, sold units at median prices of $1,836 psf and $1,832 psf in March and February respectively, according to URA data.
Meanwhile, the 500 homes stipulated for the Kim Tian project implies an average unit size of around 946 sq ft. Assuming a price of $2,000 psf, the average unit in the development would be priced around $1.9 million. This would be on the high side for a condo outside the Core Central Region that is targeted at the HDB upgrader market.
Still, Mr Sim argues that KepLand might be right in being optimistic, given the relatively high prices for HDB resale flats in the vicinity.
According to PropNex Realty CEO Mohamed Ismail, sellers of five-room HDB flats on high floors in the Kim Tian location are asking for well above $900,000. "For executive flats at Queenstown, two MRT stops away, sellers are asking for $1 million," he added.
KepLand president (Singapore) Tan Swee Yiow said: "We are confident that we will see positive demand from homeowners who aspire to own a top quality home in the CBD's fringe. . . Tiong Bahru is an established residential estate which is well-connected by public transportation and well-served by a wide range of facilities and amenities."
The Kim Tian site, in addition to being a stone's throw away from Tiong Bahru MRT Station on the East-West Line, will be 500 metres from the planned Havelock Station on the Thomson Line.
KepLand envisages a project with about 500 homes ranging from 500 sq ft to 1,350 sq ft in one to four-bedroom configurations.
"A wide range of shopping, dining and leisure amenities are a stone's throw away at Tiong Bahru Plaza, Tiong Bahru Food Centre, Tiong Bahru Conservation Area and Great World City," the group said.
Other bidders at yesterday's tender included CapitaLand unit Areca Investment which offered $993.42 psf ppr. Placing an identical bid was a tie-up between UOL Venture Investments and Kheng Leong Co.
Low Keng Huat partnered Sun Venture Homes for a $953.06 psf ppr bid. Wing Tai and Metro teamed up to bid $944.37 psf ppr. Frasers Centrepoint unit FCL Place bid $930 psf ppr.
Placing the lowest bid was Asset Legend, at $608.21 psf ppr.
Singaporeans shrinking in size so only need smaller room is it? :doh:
echelon's 3 bedder was 1001 sq ft. i think expect the same for this kepland project. 4 bedder is max of 1350 sq ft. kepland already announced that 1 to 4 bedders at 500 sq ft to 1350 sq ft.
echelon's 3 bedder was 1001 sq ft. i think expect the same for this kepland project. 4 bedder is max of 1350 sq ft. kepland already announced that 1 to 4 bedders at 500 sq ft to 1350 sq ft.
Wah 1350 sq ft want to squeeze 4 bedrooms ah?!
Why stop at 4??
Why not put in 10 bedrooms?
Kana sai!
bargain hunter
19-04-13, 21:33
developers look at hk and say, hey they anything 1k sq ft and above considered luxury, let's do that too. make 1k sq ft units "luxurious" by building everything else < 1k. :simmering:
Singaporeans shrinking in size so only need smaller room is it? :doh:
Wah 1350 sq ft want to squeeze 4 bedrooms ah?!
Why stop at 4??
Why not put in 10 bedrooms?
Kana sai!
Ppl only say 3xx sf MM too small is inhuman.. But nobody say 5xx-6xx sf 2-bdr or 8xx-9xx sf 3-bdr unit is inhuman.. So 1350sf squeeze 4-bdrm ok lah :D
while everyone is talking about the price, i'm surprised no one commented about the huge longkang the development is going to face or build over.
phantom_opera
22-04-13, 10:21
while everyone is talking about the price, i'm surprised no one commented about the huge longkang the development is going to face or build over.
they will market it as river, positive, not negative
WaterTB is already in mind
Thats why LKY tell u dont sell ur HDB liao. advice given
phantom_opera
25-04-13, 10:37
2D Upp Boon Keng Rd 11 to 15 110.00
Improved 2006 $865,000.00 Mar 2013
121A Kim Tian Pl 21 to 25 115.00
Improved 2001 $890,000.00 Apr 2013 (720psf)
76A Redhill Rd 26 to 30 100.00
Model A 2005 $850,000.00 Mar 2013 (789psf)
so new one should be min 850psf ... translate to 1,700psf for big unit
How does your translation work? How you get 1700psf from 850psf?
bargain hunter
25-04-13, 10:55
but 3 jalan membina flats nearer to this site already sold at 945k, 930k and 925k in jan and feb. 110 sq m = 798psf for the 945k one.
2D Upp Boon Keng Rd 11 to 15 110.00
Improved 2006 $865,000.00 Mar 2013
121A Kim Tian Pl 21 to 25 115.00
Improved 2001 $890,000.00 Apr 2013 (720psf)
76A Redhill Rd 26 to 30 100.00
Model A 2005 $850,000.00 Mar 2013 (789psf)
so new one should be min 850psf ... translate to 1,700psf for big unit
phantom_opera
25-04-13, 11:03
but 3 jalan membina flats nearer to this site already sold at 945k, 930k and 925k in jan and feb. 110 sq m = 798psf for the 945k one.
all resale HDBs around 800psf only ... so 1162psf for just the land is really on the high side
phantom_opera
25-04-13, 11:04
How does your translation work? How you get 1700psf from 850psf?
normally new 99LH PC is priced at X2 of new HDB just completed MOP
bargain hunter
25-04-13, 11:09
that means hdb will chiong more and less upside for the to be launched kepland project?
all resale HDBs around 800psf only ... so 1162psf for just the land is really on the high side
bargain hunter
25-04-13, 11:14
think he means double psf for condo vs hdb.
How does your translation work? How you get 1700psf from 850psf?
http://www.todayonline.com/business/property/kim-tian-site-attracts-record-bid
Property
Kim Tian site attracts record bid
19 April
SINGAPORE — Another record has been set in the housing sector, with Keppel Land putting in the highest-ever per-square-foot bid in a tender for a private residential site in Kim Tian Road, signalling developers are still bullish in their market outlook.
The tender attracted 11 bids by the close yesterday, with Keppel Land unit Harvestland Development submitting the top bid of S$550.3 million, Urban Redevelopment Authority data showed.
The centrally-located 99-year leasehold site was released under the Confirmed List of the Government Land Sales programme for the first half of this year. Near Tiong Bahru MRT Station, it sits on about 118,302 sq ft of land and has a maximum permissible gross floor area of about 473,213 sq ft.
Keppel Land said it would develop about 500 homes ranging from 500 sq ft to 1,350 sq ft in one- to four-bedroom configurations when awarded the site.
Harvestland’s bid translates to S$1,162.86 per sq ft per plot ratio, the highest bid ever for a pure residential site, beating the previous record of S$1,107 psf ppr for a site at Farrer Road, said Mr Lee Sze Teck, Senior Manager for Training, Research and Consultancy at DWG.
The top three bids were above S$1,000 psf ppr. The second-highest was S$513.3 million or S$1,084.78 psf ppr. The third in line was a S$481.1 million bid, or S$1,016.67 psf ppr.
Mr Lee said: “The top bid, as well as the large number of bidders, reflects strong desire among developers to secure well located sites near MRT stations. Furthermore, there are limited land parcels for development in Tiong Bahru.”
Mr Nicholas Mak, Executive Director of Research and Consultancy at SLP International, said: “The developer is expected to incur a higher-than-usual construction cost in view of the regulations and restrictions imposed on this site. Based on our estimates, the break-even price should be between S$1,740 and S$1,800 psf.”
“Considering the average price of S$1,750 psf for The Echelon, which is the newest condominium launched in the vicinity, the developer may be factoring in a 15 to 20 per cent increase in condominium prices in that area,” he added.
think he means double psf for condo vs hdb.
Hoarding up and saw the soil investigation on site. So fast launching ? Wonderful view toward city buy must be damn costly.
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