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17-06-13, 15:26
http://www.straitstimes.com/archive/friday/premium/money/story/sengkang-condo-site-draws-top-bid-257m-20130614
Sengkang condo site draws top bid of $257m
Developers 'still hungry' as bullish bids for Fernvale Close beat forecasts
Published on Jun 14, 2013
By Cheryl Ong
A PLUM residential site in Sengkang with sweeping water views has beaten market expectations by attracting a top bid of about $257 million in a nine-way fight among developers.
Analysts say the bullish bidding for the Fernvale Close site indicates that developers are still hungry for attractive sites.
The tender closed yesterday.
A bid by a joint venture comprising Frasers Centrepoint, Far East Orchard and Sekisui House came out tops with a price of $533 per sq ft per plot ratio (psf ppr). The 14,931 sq m site is estimated to yield 495 units.
This exceeded experts' expectations, when the site was released in April, of a top bid ranging from $500 to $520 psf ppr.
The top bid was 2.8 per cent higher than MCC Land's bid of $250 million - or $519 psf ppr.
Experts say the strong response to the 99-year leasehold site was because "developers remain confident of demand for homes in this part of Sengkang".
The site's location - next to the Sengkang Riverside Park, Layar LRT station and amenities such as the upcoming Seletar Mall and Sengkang Sports and Recreation Centre - was a draw, said CBRE residential executive director Joseph Tan.
Jones Lang LaSalle national director of research and consultancy Ong Teck Hui said the top bid was 9 per cent higher than that of $489 psf ppr for an adjacent site at Sengkang West Way in April, showing developers are eager to secure sites in the area.
In addition, all nine bids were above the price of $400 psf ppr, while only three of eight bids in the Sengkang West Way tender were above that level, said Mr Ong.
"Recent strong sales at Jewel@Buangkok suggest there will generally be strong buyers' interest in new projects in the north-east, and thus strengthen developers' interest to continually develop new projects in Punggol and Sengkang," noted R'ST Research director Ong Kah Seng.
H2O Residences, a 521-unit condominium project next to the site, is about 92 per cent sold, reflecting buyers' interest in the area, he added.
OrangeTee's head of research and consultancy Christine Li expects the latest development to attract HDB upgraders currently residing in Sengkang.
She noted: "Those who bought Sengkang HDB flats are already sitting on tidy profits."
In the first quarter of this year, median prices of four- and five-room flats in Sengkang were $486,000 and $535,000 respectively. As such, there will be enough upgraders' demand in the locality.
The joint venture led by Frasers Centrepoint has proposed a 490-unit residential development with seven blocks of 18 storeys each.
Experts estimate a breakeven price of $1,000 psf ppr and expect selling prices to start from $1,200 psf. Projects in the vicinity developed by Frasers Centrepoint, Far East Organization and Sekisui House are Boathouse Residences at Upper Serangoon View and Watertown in Punggol Central. They will attain their temporary occupation permits in 2015 and 2017 respectively.
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Sengkang condo site draws top bid of $257m
Developers 'still hungry' as bullish bids for Fernvale Close beat forecasts
Published on Jun 14, 2013
By Cheryl Ong
A PLUM residential site in Sengkang with sweeping water views has beaten market expectations by attracting a top bid of about $257 million in a nine-way fight among developers.
Analysts say the bullish bidding for the Fernvale Close site indicates that developers are still hungry for attractive sites.
The tender closed yesterday.
A bid by a joint venture comprising Frasers Centrepoint, Far East Orchard and Sekisui House came out tops with a price of $533 per sq ft per plot ratio (psf ppr). The 14,931 sq m site is estimated to yield 495 units.
This exceeded experts' expectations, when the site was released in April, of a top bid ranging from $500 to $520 psf ppr.
The top bid was 2.8 per cent higher than MCC Land's bid of $250 million - or $519 psf ppr.
Experts say the strong response to the 99-year leasehold site was because "developers remain confident of demand for homes in this part of Sengkang".
The site's location - next to the Sengkang Riverside Park, Layar LRT station and amenities such as the upcoming Seletar Mall and Sengkang Sports and Recreation Centre - was a draw, said CBRE residential executive director Joseph Tan.
Jones Lang LaSalle national director of research and consultancy Ong Teck Hui said the top bid was 9 per cent higher than that of $489 psf ppr for an adjacent site at Sengkang West Way in April, showing developers are eager to secure sites in the area.
In addition, all nine bids were above the price of $400 psf ppr, while only three of eight bids in the Sengkang West Way tender were above that level, said Mr Ong.
"Recent strong sales at Jewel@Buangkok suggest there will generally be strong buyers' interest in new projects in the north-east, and thus strengthen developers' interest to continually develop new projects in Punggol and Sengkang," noted R'ST Research director Ong Kah Seng.
H2O Residences, a 521-unit condominium project next to the site, is about 92 per cent sold, reflecting buyers' interest in the area, he added.
OrangeTee's head of research and consultancy Christine Li expects the latest development to attract HDB upgraders currently residing in Sengkang.
She noted: "Those who bought Sengkang HDB flats are already sitting on tidy profits."
In the first quarter of this year, median prices of four- and five-room flats in Sengkang were $486,000 and $535,000 respectively. As such, there will be enough upgraders' demand in the locality.
The joint venture led by Frasers Centrepoint has proposed a 490-unit residential development with seven blocks of 18 storeys each.
Experts estimate a breakeven price of $1,000 psf ppr and expect selling prices to start from $1,200 psf. Projects in the vicinity developed by Frasers Centrepoint, Far East Organization and Sekisui House are Boathouse Residences at Upper Serangoon View and Watertown in Punggol Central. They will attain their temporary occupation permits in 2015 and 2017 respectively.
[email protected]