reporter2
21-03-14, 14:59
http://www.straitstimes.com/archive/saturday/premium/money/story/singhaiyi-kay-lim-ec-project-20140315
invest
SingHaiyi, Kay Lim in EC project
Published on Mar 15, 2014
SINGHAIYI Group has roped in Kay Lim Investment as a partner to develop an executive condominium (EC) at Anchorvale.
SingHaiyi won a 12-way contest for the plum plot in Sengkang last month. Under the tie-up, Kay Lim will acquire a 20 per cent stake in the project company that will build the EC, with SingHaiyi owning the remaining 80 per cent interest.
Kay Lim, a construction company, has entered into previous joint ventures with SingHaiyi for the development of housing projects in Singapore, such as Pasir Ris One and CityLife @ Tampines.
SingHaiyi had lodged the top bid of $192.9 million for the 175,236 sq ft parcel at Anchorvale Crescent, near the Sengkang MRT station. The amount works out to $367 per sq ft (psf) per plot ratio (ppr), pipping MCL Land's $363 psf ppr bid by 1 per cent.
The winning bid fell in the middle of the price range of $330 to $400 psf ppr that the market had expected.
Analysts said developers were more cautious with their bids as tighter limits on home loans imposed last year are expected to shrink the pool of eligible new EC buyers.
EC buyers could previously use up to 35 per cent of their gross monthly income to pay off their mortgage, but that was lowered to 30 per cent in December last year.
The highest bids at other EC tenders so far this year are below $400 psf ppr, a psychological level that analysts say is hard to breach with current market conditions.
A Jurong West plot was sold in January at $382 psf ppr while a site in Sembawang fetched $350 psf ppr.
Some analysts reckon the developer will launch the Anchorvale Crescent EC at prices above $800 psf.
invest
SingHaiyi, Kay Lim in EC project
Published on Mar 15, 2014
SINGHAIYI Group has roped in Kay Lim Investment as a partner to develop an executive condominium (EC) at Anchorvale.
SingHaiyi won a 12-way contest for the plum plot in Sengkang last month. Under the tie-up, Kay Lim will acquire a 20 per cent stake in the project company that will build the EC, with SingHaiyi owning the remaining 80 per cent interest.
Kay Lim, a construction company, has entered into previous joint ventures with SingHaiyi for the development of housing projects in Singapore, such as Pasir Ris One and CityLife @ Tampines.
SingHaiyi had lodged the top bid of $192.9 million for the 175,236 sq ft parcel at Anchorvale Crescent, near the Sengkang MRT station. The amount works out to $367 per sq ft (psf) per plot ratio (ppr), pipping MCL Land's $363 psf ppr bid by 1 per cent.
The winning bid fell in the middle of the price range of $330 to $400 psf ppr that the market had expected.
Analysts said developers were more cautious with their bids as tighter limits on home loans imposed last year are expected to shrink the pool of eligible new EC buyers.
EC buyers could previously use up to 35 per cent of their gross monthly income to pay off their mortgage, but that was lowered to 30 per cent in December last year.
The highest bids at other EC tenders so far this year are below $400 psf ppr, a psychological level that analysts say is hard to breach with current market conditions.
A Jurong West plot was sold in January at $382 psf ppr while a site in Sembawang fetched $350 psf ppr.
Some analysts reckon the developer will launch the Anchorvale Crescent EC at prices above $800 psf.